This week in our section 100A series, we consider the
second primary defence to section 100A, which is to
show that there was no "agreement" that could give rise
to a "reimbursement agreement".
The key requirement to invoking section 100A is to identify a
"reimbursement agreement". This is broadly an agreement
to provide benefits to a person other than the
beneficiary.1 Put more simply, this is an agreement to
make the trust distribution to one person and for another to use
the value that is generated. As a focus is to identify an
"agreement", a primary defence to section 100A is to show
that — notwithstanding that the economic benefit of the trust
income has been provided to someone other than the beneficiary
— this was not part of any "agreement".
