CASE 2 Trust taxation

The Alpha Family trust is an inter vivos trust with four beneficiaries, Allan (30% entitled), Betty (30% entitled), Charles (20% entitled) and Diana (15% entitled).

In the 2020/2021 income tax year, the Alpha trust derived the following amounts:

Net rental income of $100,000 Fully franked dividend income in March 2021 of $70,000

70% franked dividend income of $42,000 in May 2021

Capital gain of $20,000 from sale of ABC shares (purchased 2010 and sold May 2021)

Capital gain of $7,000 from sale of XYZ shares (purchased May 2020, sold January 2021)

Prior year capital loss of $50,000 (from sale of shares) Additional information The following information relates to 2020/21 tax year.

. Allan is 39 years old and working as a teacher. Allans wages totalled $80,000 and no deductions to claim. Allan has $25,000 carried forward capital loss from sale of shares.

Betty is 28 years old and currently bankrupt. Betty has no other income.

Charles is 16 years old and working full time in the past 8 months and he does not have intention to go to school. Charles wages totalled $45,000 and no deductions to claim.

Diana is 15 years old full-time student. However, Diana works at local supermarket as a cashier on casual basis. Her wages totalled $16,000 and no deductions to claim. Required Explain and calculate net tax payable for each of the beneficiaries for 2020/2021 tax year.