Page 15 - P6 Slide Taxation - Lecture Day 2 - Trust

Conduit Pipe

• In Armstrong v CIR (1938 AD) it was held that

income of a trust retains its identity until it

reaches the parties in whose hands it is taxable.

• Income retains its nature only if it accrues to the

beneficiaries in the same year of assessment as it

accrued to the trust (SIR v Rosen (1971 A)).

• Still a local dividend if it flows through in same

year (still exempt)

• Note: the s10(1)(k) and s10(1)(h) exemptions fall

away if amount is paid as annuity.

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