S.L. 123.114 Art. 4Foundations to be taxed similarly to trust.

(1) The administrators of a foundation may by notice in writing to the Commissioner irrevocably elect that a foundation shall be taxed under the provisions of the Act applicable to trusts.

(2) When an election as provided in this regulation has been made, the provisions of the Income Tax Acts and any regulations thereunder applicable to trusts, shall be applied to the founder, the foundation and the beneficiaries mutatis mutandis keeping in view that -

(a) reference to the settler of a trust in the Act shall be construed as reference to the founder of a foundation;

(b) references to the patrimony of the trust or the trust fund or property shall be treated as reference to the foundation;

(c) reference to the trustees of the trust shall be treated as references to the administrators of the foundation;

(d) references to the beneficiaries shall be treated to be references to beneficiaries of a foundation, or in case of a purpose foundation to those persons who personally benefit:

Provided that where the Income Tax Acts refer to a duty relative to the trust, it shall be treated as a duty of the administrator or of the foundation as the case may be.