Ben wants to benefit from the lower tax rate that his unmarried granddaughter Jenny, $22$ years old, may pay. On $1$ March, Ben

donated a block of flats to the DM Trust,lenny is the only beneficiary of the trust and she has a vested right to the income of the

trust. During the current year of assessment, the DM Trust received net rental income amounting to R$100000.$ Discuss the tax

consequences pertaining to the rental income

A$.$ No tax consequences on the rental income

B$.$ Ben is taxed on the R$100000$ as this was a scheme for Ben to be taxed lower

C$.$ Both Jenny and Ben are taxed on R$50000$ each

D$.$ Jenny is taxed on the R$100000$ as the provisions of section $7(3)$ do not apply