Page 38 - Taxation P6 - Lecture day 2 Notes - Trust
P. 38
Interest free/low-interest loans
• Not a donation for purposes of donations tax!
• If low interest is charged (for example 2%
instead of 8% market related), income earned
is attributed on a pro-rata basis.
• Section 7 may then be applied to 6%/8% of
the income.
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