Lisa Hirshburg, a $21-$year$-$old South African resident and a nephew to late Donald Hirshburg has a

vested right to the local rentals earned by Hirshburg Family Trust. Whilst, Amanda Hirshburg has the

vested right to the local and foreign dividends of a local interest earned by the Hirshburg Family Trust.

Hirshburg Family Trust, also a South African resident owns a local rent$-$producing investment property

in Durban South Africa, local and foreign dividend$-$yielding shares, and local interest$-$bearing

securities$.$ rent$-$producing.

The following information is relevant for the $2024$ year of assessment:

Rentals R$80000$

Local dividends R$60000$

Foreign dividends R$40000$

Local interest R$20000$

Total R$200000$

Less expenditure incurred R$120000$

$($Incurred in rental property$)$

Less distribution to Lisa R$60000$

Retained receipts and accruals R$20000$

During the $2024$ year of assessment, the Hirshburg Family Trust incurred expenditures in relation to

the repairs of the rent$-$producing property. As a result, a loss was incurred $($more repair fees than

income$)$ and the Trustees were not able to distribute the net rentals to Lisa. Upon their discretion, the

Trustees awarded Lisa R$60000$ out of other receipts and accruals which were local interest, and local

and foreign dividends.

Additional information

$-$ Lisa did not have any income or accruals during the current year of assessment other than the

one mentioned in the question. Lisa is a full$-$time university student studying at the UKZN

Westville campus. She is not married.

Page $5$ of $6$

Required:

$1.$ Discuss the difference between vesting and non$-$vesting interest. $(1$ marks$)$

$2.$ Determine the taxable income of Hirshburg Family Trust $(12$ marks$)$

$3.$ Determine the taxable income of Lisa. $(12$ marks$)$