Below is an income statement of the inter$-$vivo trust created by Betty Smith who donated all the assets to the trust. In terms of the trust deeds, Xavier Smith is entitled to an annuity of R$240000$ and Yolandi is entitled to $50\%$ of the net income remaining after the payment of annuity. The balance of the receipts and accruals shall be paid out to Xavier upon Yolandi$$s death. Should Xavier die before Yolandi, the balance of receipts and accruals will be paid to Yolandi. Xavier and Yolandi are both majors and residents of South Africa. All taxpayers are younger than $65$ years of age.

Calculate the taxable income of all the relevant parties for the year of assessment and discuss the ethical risks likely to be encountered in this scenario