a) The trustee of an MIT distributes $55,000 of the trusts net income for the 2018/19 income year to a unitholder who is a resident in the United Kingdom. The distribution comprises interest of $40,000 and the balance $15,000 represents a find payment. Explain tax implications of the distribution.

b) What is the aim of the international transfer pricing rules?

What is a sham and what is the effect of a sham? Explain your answer.