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Section HC 6(1) of the ITA 2007 requires income to be "paid" to
a beneficiary within 6 months, whereas section OB 1 "beneficiary
income" in the ITA 2004 stated "pays or applies" which appears
to be a substantial change.
We note that "paid" is not defined in the ITA 2007, however the
"Defined in this Act" note at the end of section HC 6 refers to
"pay" but "pay" is not used in section HC 6.
The term "pays" was used in the ITA 2004 so perhaps this was an
oversight in the drafting of the ITA 2007.
"Pay" is defined in YA 1 and includes ". to distribute . to
credit . to deal with the amount" etc (essentially meaning
applied).
Section HC 6 is not recorded as an intentional change in
Schedule 51 of the ITA 2007.
Could you also clarify if there has been an unintended change in
the legislation
Give examples: Pursuant to OB 1 of the ITA 2004, if dividends
received by Trust A are credited by journal entry to Trust A's
beneficiary current accounts, this would constitute beneficiary
income derived by the beneficiaries.
However, pursuant to the ITA 2007, in the scenario above, this
would not constitute beneficiary income derived by the
beneficiaries. | 
