Section 1 of the Income Tax Act specifically includes trusts in the definition of a "person". Trusts are therefore taxed according to the same tax rates and principles that apply to individuals.
By way of arrangement the founder of the trust appoints the trustees who will be responsible for the administration of the trust. The trust agreement also stipulates the beneficiaries of the trust (e.g. the founder's children, spouse, etc.), who are mainly chosen by the founder of the trust.
A trust can either be:
With a discretionary trust the trustees have the option to make or not make disributions. If the trustees decide not to distribute trust income but to retain the income in trust, the income will be taxed in the trust at the end of the year.
With a vested interest trust the beneficiaries have vested rights to the income of the trust. The beneficiaries can also have vested rights to the assets of the trust if the trustee decided to vest the assets in the beneficiaries' hands.
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Levied on the value of any property acquired by any person and payable within 6 months of the acquisition date. Acquisitions Exempt from Transfer Duty include: Property by the state, local authority, educational institution of a public character;
What is Gross Income?
What is Value-Added Tax?
Who is classified as a taxpayer representative?
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