INCOME TAXATION LAW & PRACTICE
Objectives
This is the only tutorial for the topic taxation of trusts. The objective of this tutorial is to practice problem solving skills; both through self-assessment of conceptual knowledge of the topic and through tutorial discussion of the topics set out below.
Tasks
1. Please prepare short answers to the following discussion topics:
(a) What is a trust? Explain the differences between a discretionary trust and a fixed trust. List some ways in which the taxation of a trust differs from that of a partnership and a company.
(b) How is the net income of a trust calculated? Why would Trust Income and s95 Trust Net Income differ?