Lululemon is a resident company that acts as trustee of the


Question - Lululemon is a resident company that acts as trustee of the Yoga Family Trust. The following transactions occurred during the year in relation to the trust:

  • Rental income from a Sydney property $60,000
  • Deductible expense in relation to the Sydney property $10,000
  • Unfranked dividends $18,000
  • Franked dividends $10,000
  • Interest $2,550

There are three beneficiaries of the Yoga family trust;

  • Paige - resident and aged 50
  • Luke - resident and aged 14
  • Gen Co. - non resident company

On the 30 June 2015, Lululemon, in accordance with the trust deeds, resolves to distribute 25% of the trust income to each of the three beneficiaries. No resolution is made with regards to the remaining 25%.

Required: Calculate the s95 trust net income for the 2014/15-tax year.

Advise each of the beneficiaries of the tax implications of their trust distributions.

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Accounting Basics: Lululemon is a resident company that acts as trustee of the
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