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MY SUBJECT IS TAXATION LAW. SOMEBODY CAN HELP ME, PLEASE !!!! Raytok is a resident company that acts as trustee of the Brown Family Trust.
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:
- (a)Calculate the s95 net income from the trust for the 2015/16 tax year.
- (b)Advise each of the beneficiaries of the tax implications of their trust distributions.
(5 marks) (10 marks)
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