Page 16 - Taxation P6 - Lecture day 2 Notes - Trust
P. 16
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
distribute Trust is taxed
Beneficiary is taxed
a loss
s25B(4)
Beneficiary is entitled to
Trust is entitled to deductions
deductions
PRINCIPLE:
“The deduction or allowances FOLLOW the amount to which they relate”
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