MY SUBJECT IS TAXATION LAW. SOMEBODY CAN HELP ME, PLEASE !!!!

Raytok is a resident company that acts as trustee of the Brown Family Trust. The

following transactions occurred during the year

• Rental income from a Sydney property
• Allowable deductible expense in relation
• to the Sydney property
• Unfranked dividends
• Franked dividends
• Interest

in relation to the trust: $60,000

$10,000 $18,000 $10,000 $2,550

There are three beneficiaries of the Brown family trust;

• Julie resident and aged 50
• Mason resident and aged 14
• Goff Co. non-resident company
• On the 30 June 2016, Raytok, in accordance with the trust deeds, resolves to distribute 25% of the trust income to each of the three beneficiaries. No resolution is made with regards to the remaining 25%. The trust deed does not provide for any of the beneficiaries to be specifically entitled to any income of the trust.

Required:

1. (a)Calculate the s95 net income from the trust for the 2015/16 tax year.
2. (b)Advise each of the beneficiaries of the tax implications of their trust distributions.

(5 marks) (10 marks)