Page 16 - P6 Slide Taxation - Lecture Day 2 - Trust

Deductions and allowances (Sec

25B(3))

Beneficiary does not have a
Beneficiary has a vested right
vested right (income retained in
in the income
trust)

Cannot
distribu

Beneficiary is taxed te a Trust is taxed
loss

s25B(4)

Beneficiary is entitled to
Trust is entitled to deductions
deductions

PRINCIPLE:

“The deduction or allowances FOLLOWthe amount to which they relate”

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