Section 82: Taxation of settlors.

(1) The chargeable income as determined under section 81 of a non-resident trust other than a qualified beneficiary trust shall be included in the chargeable income of a resident person who has contributed value to the trust. (2) If a person to whom subsection (1) applies is not able to ascertain the chargeable income of the non-resident trust, the person shall be deemed to have derived chargeable income equal to the amount of chargeable income that the person would have derived for the year of assessment with respect to the value contributed by the person to the trust, assuming a half yearly compounded net rate of return equal to six percent higher than the specified rate referred to in section 146. (3) Where more than one person has contributed value to a trust to which subsection (1) applies, the chargeable income of the trust shall be attributed proportionally to each person who has contributed value with regard to the proportion of value contributed by the person. (4) For the purposes of this section, a person contributes value to a non-resident trust where the person provides property or services to the trust for less than the market value.