# data[].attributes.body
S.65(1) Income to unmarried relatives under age of 21
S.65(2) Revocable settlement
S.65(3) Making use of income of settled property
S.65(4) Recovery of income tax paid

# data[].attributes.body
S 65(1) : Income to unmarried relatives under the age of 21
S 65 (2): Revocable settlement at anytime
S 65 (3): Settlor makes use of income of the settled propertly
S 65 (4): Reccovery of income tax paid

# data[].attributes.body
Income is deemed settlor under Section 65:

1. S 65(1): Income to unmarried relatives under age of 21
2. S 65(2): Revocable settlement at anytime
3. S 65(3): Settlor make use of income of the settled property
4. S 65(4): Recovery of income tax paid

# data[].attributes.body
1. Section 65 (1) Income to unmarried relatives under age of 21
2. Section 65 (2) Revocable settlement at anytime
3. Section 65 (3) Settlor make us of the income of the settled property
4. Section 65 (4) Recovery of income tax paid

# data[].attributes.body
There are 3 conditions where Section 65 applies - Income is deemed settlor:
1) Section 65 (1) - Income is unmarried relatives under age of 21.
2) Section 65 (2) - Revocable settlement at anytime.
3) Section 65 (3) - Settlor make use of the income of the settled property.

# data[].attributes.body
3 circumstance where S65 applies - income is deemed settlor
1. Section 65(1) - Income to unmarried relative under age of 21 years old
2. Section 65(2) - Revocable settlement
3. Section 65(3) - Making use of income of settled property

# data[].attributes.body
The condition constitutes a settlement [under s.65] because:

– There is a transfer of an asset and the transfer was made without valuable and adequate consideration.

– The ‘settlor’ was the owner of the property, and the settlement was made during the life of the settlor.

– The “relative” means a child of the settlor (including step-child, a child of whom the settlor has the custody or whom he maintains wholly or partly at his own expenses), a child adopted by the settlor or any person who is statutory relationship with settlor.

– Fulfilled one of the circumstances, it is deemed to be income of the settlor.

1.       Income to unmarried relatives < 21 years old – S65 (1)

2.       Revocable settlement at anytime – S65 (2)

3.       Settlor make use of the income of the settled property – S65 (3)

# data[].attributes.body
1) Income to unmarried relatives under age of 21 s65(1) -where the relative is unmarried and under the age of 21 years at the commencement od that YA, income of the settlement and assets representing income are deemed to be that of the settlor. Where assets earned further income in subsequent period, it is also deemed to be income of the settlor.
2) Revocable settlement at anytime s65(2) -A settlement which gives power of revocation to the settlor. The effect of the revocation n benefits the settlor or his wife directly or indirectly. The settlor can break off the agreement at any time. The property is transferred only in the name sake but the actual control is still with the settlor.
3)Using income of settled property s65(3)- restricted to income or accumulated income which has arisen under the settlement. If the settlor, any relative of the settlor; or any person under the control of the settlor similarly makes use of the income of the settlement to which he is not entitled to, the income will be deemed to be that of the settlor. The use whether by borrowings or otherwise brings the settlement under section 65 (3)
4) Recovery of income tax paid s65(4) - Where a settlor has suffered tax in respect of income of a settlement, the settlor can recover the income tax paid by him from the trustee of the settlement or beneficiaries of the settlement. The DGIR shall furnish a certificate specifying the amount of tax so paid and any certificate so furnished shall be conclusive evidence of the facts appearing therein.

# data[].attributes.body
1) income to unmarried relatives under age of 21 [ s 65 (1)]
2) Revocable settlement ( s 65 (2)]
3) Making use of income of settled property [ s 65 (3)]
4) Upon demise of the settlor, the respective beneficiaries will be assessed on the income of the settled property

# data[].attributes.headline
There are three possible settlement situations under section 65:

# data[].attributes.subject
There are three possible settlement situations under section 65:

# data[].attributes.body
1. settlement by a settlor on an unmarried relative who is below 21 years of age [section 65(1)],or
2.settlement by a settlor on any other person with absolute power to revoke the settlement,thus causing the property or income to revert to the settlor or his/her spouse [section 65(2)], or
3.settlement that does not have the above two features , but the settlor (or any person controlled by him) nevertheless is able to access any income or accumulated income arising from the settlement [section 65(3)].

# data[].attributes.body
1. S 65(1) income to unmarried relatives under age of 21
2. S 65(2) revocable settlement at anytime
3. S 65(3) settlor make use of the income of the settled property

# data[].attributes.body
A high income individual may resort to 'splitting' his income by 'settling' (bestowing or giving possession under legal sanction) or, in layman’s language, 'giving away' some of his income-producing assets or income streams to individuals who are in lower tax brackets, yet at the same time retaining power to revoke such settlement or hold a significant measure of control or accessibility to the said income. Therefore, by splitting his income, the total tax liability of the settlor is reduced.
There are three possible settlement situations under section 65:

1. Settlement by a settlor on an unmarried relative who is below 21 years of age [Section 65(1)], or

2. Settlement by a settlor on any other person with absolute power to revoke the settlement, thus causing the property or income to revert to the settlor or his/her spouse [section 65(2)], or

3. Settlement that does not have the above two features, but the settlor (or any person controlled by him) nevertheless is able to access any income or accumulated income arising from the settlement [Section 65(3)].

4. Recovery of income tax paid [S65 (4)].

The relative is defined in section 65(11) as:

a child of the settlor (including a step-child of the settlor, a child under his custody or financial support), and a legally adopted child

a wife

a grandchild

a brother or sister

an uncle or aunt

a nephew, niece or cousin.

# data[].attributes.body
A settlement caught under section 65 is defined in section 65(11) to include any disposition, trust, covenant, arrangement or agreement and any transfer of assets or income without adequate valuable consideration. A settlement is constitutes under S 65 of the Income Tax Act under four conditions:

1. Settlement by a settlor on an unmarried relative who is below 21 years of age [Section 65(1)]

2. Settlement by a settlor on any other person with absolute power to revoke the settlement, thus causing the property or income to revert to the settlor or his/her spouse [section 65(2)]

3. Settlement that does not have the above two features, but the settlor (or any person controlled by him) nevertheless is able to access any income or accumulated income arising from the settlement [Section 65(3)]

4. .Recovery of income tax paid [S65 (4)]

# data[].attributes.body
Defination : Includes any disposition, trust, covenant, arrangement or agreement and any transfer of assets or income. A settlement is constitutes under S 65 of the Income Tax Act under four conditions:
1. Income to unmarried relative under age of 21 [S65 (1)]
2. Revocable Settlement [S65 (2)]
3. Using income of settled property [S65 (3)]
4. Recovery of income tax paid [S65 (4)]

# data[].attributes.body
There is a transfer of an asset and the transfer was made without valuable and adequate consideration.

The ‘settlor’ was the owner of the property, and the settlement was made during the life of the settlor.

As a result of the transfer, a ‘relative’ as defined [in s.65(11)] becomes the owner of the property

The relative was unmarried and had not attained the age of 21 years at the beginning of the year of assessment

# data[].attributes.body
To combat tax avoidance scheme, S65 empowered the DG to disregard transactions that are not genuine and impose tax on the settlor as if no settlement exists.

# data[].attributes.body
“settlement” includes any disposition, trust, covenant, arrangement or agreement and any transfer of assets or income, but does not include—
(a) a settlement which in the opinion of the Director
General is made for valuable and adequate
consideration;
(b) a settlement resulting from an order of a court; or
(c) any agreement made by an employer to pay to an
employee or to the widow or any relative or dependant
of an employee after his death such remuneration,
pension or lump sum as in the opinion of the Director General is fair and reasonable;

# data[].attributes.body
1. Income to unmarried relatives under age of 21 - S65 (1)
2. Revocable settlement at anytime - S65(2)
3. Settlor make use of income of settled property - S65 (3)

# data[].attributes.body
1.income to unmarried relatives under age of 21
2.revocable settlement at anytime
3.settler make use of the income of the settled property

# data[].attributes.headline
Income to unmarried relative under age of S21 S65(1)

# data[].attributes.subject
Income to unmarried relative under age of S21 S65(1)

# data[].attributes.body
Does not include a settlement resulting from an Order of a court

# data[].attributes.body
S 65 of Income Tax Act is designed to prevent tax avoidance through an arrangement of settlement especially where the parties involves are relatives. This is achieved by transferring the liability of a settlor who may be in a higher tax bracket to another relatives who may be in a lower tax bracket.

# data[].attributes.body
designed to prevent tax avoidance through an arrangement of settlement esp where the parties involved are relatives

# data[].attributes.body
1.

# data[].attributes.body
can be in the form of annuity, property or one time cash

# data[].attributes.body
Settlement can be in the form of annuity,one time cash or property

# data[].attributes.body
Includes any disposition, trust, convenant, arrangement or agreement and any transfer asset or income

# data[].attributes.body
Revocable settlement at anytime. The whole income arising from the settlement is deemed to be income of the settlor

# data[].attributes.body
1. Income to unmarried relatives under age of 21 - S65(1)
- Where relative is unmarried and under the age of 21, income of settlement and assets representing income are deemed to be that of the settlor

2. Revocable settlement at anytime - S65 (2)
- Gives a power of revocation to the settlor
- Settlor can break off the agreement or arrangements at any time

3. Settlor make use of the income of the settled property - S65 (3)
- Restricted to income or accumulated income which has arisen under the settlement
- If settlor, any relative of settlor or any person under the control of settlor similarly makes use of the income of the settlement to which he is not entitled to, the income will deemed to be that of the settlor.

# data[].attributes.body
To combat tax avoidance
Transfer asset such as land, shop, and others to relatives.
Relative means child, step child
好有很多人啦。

# data[].attributes.headline
Use to identify the various circumstances where income arising from settlement is deemed to be income of settlor.

# data[].attributes.subject
Use to identify the various circumstances where income arising from settlement is deemed to be income of settlor.