During January $2022$ Elia Mads $(51$ years old$)$ created a trust in in favour of his three children, Kenneth, Owen, and

Steven. Kenneth is a $29-$year$-$old medical doctor in Johannesburg. Owen turned $18$ on $1$ December $2022,$ and Steven is

$15$ years old and still attending school.

The trust assets consist of a flat with a market value of R$2000000,$ and a local portfolio with a market value of R$1500000.$

Both these assets were donated to the trust by Elia. Elia$$s brother Will $(54$ years old$),$ who is a bachelor, donated

R$1000000$ invested in $5\%$ bonds issued by a local bank, to the trust.

The trust deed includes the following provisions amongst others:

$(1)$ An annuity of R$30000($R$2500$ per month$)$ shall be pain to Kenneth.

$(2)$ The trustees may make payments to the children for education and $/$or maintenance. All payments should be

funded pro rata from the current year$$s income and, apart from those mentioned in $(4),$ no payment should be

made of the accumulated funds.

$(3)$ The trustees, who are independent, must be remunerated at $5\%$ of the trust$$s net income, before any distributions

to the beneficiaries.

$(4)$ The trust will be wound up when Steven reaches the age of $25$ years. The accumulated funds as well as the

capital in respect of the shares and the flat will be shared equally between the three children. The accumulated

funds as well as the capital in respect of the bonds will be paid to Owen.

The following information conditions apply:

$$ If Kenneth decides to leave the Republic in search of greener pastures, his share will go to the other two brothers

in equal shares.

$$ If Kenneth or Steven should die before Steven attain the age $25$ years, that child$$s portion will go to the other two

brothers in equal shares.

$$ If Owen should die before Steven attains $25$ years, his share of any accumulated funds as well as the capital in

respect of the bonds will be paid to his estate.

Note: Owen therefore has a $100\%$ vested right in the accumulated interest and a one$-$third vested right in the accumulated

dividends and rentals. Neither Kenneth nor Steven has any vested rights in any accumulated income.

The receipts and accruals accrued evenly throughout the year. The distribution to Owen took place on $1$ September $2022$

$($while Owen was still a minor$),$ and the education fees of Owen and Steven were paid on $15$ January $2023($after Owen

became a major$).$

The following is the statement of receipts and accruals and payments of the trust for the $2023$ year of assessment:

Total Donor:

Elia

Rentals

Donor:

Elia

Dividends

Donor:

Will

Interests

R R R R

Receipts and accruals $35000020000010000050000$

Less: Rates, taxes, and repairs $(50000)(50000)$

Net income $30000015000010000050000$

Ration as a percentage $100\%50\%33,33\%16\mathrm{.}67\%$

Less:

Trustee$$s remuneration $(15000)(7500)(5000)(2500)$

Annuity to Kenneth $(29$ years old$)(30000)(15000)(10000)(5000)$

Distribution to Owen $(17$ years old$)$ on $1$ September $2022(25000)(12500)(8333)(4167)$

Education fees of Owen $(18)$

Education fees of Steven $(15)$

$(75000)$

$(65000)$

$(37500)$

$(32500)$

$(25000)$

$(21667)$

$(12500)$

$(10833)$

Retained in trust $90000450003000015000$

YOU ARE REQUIRED TO calculate the taxable income of each of the taxpayer as a result of the income $/$ accruals of

the trust during the $2023$ year of assessment.