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On 1 February 2 0 2 2 Vujo Sithole ( 5 8 years old ) created a trust for the benefit of his three children
On February Vujo Sithole years old created a trust for the benefit of his three children Joyce
Thava and Rico:
Joyce is years old and unmarried;
Thava is years old and married; and
Rico is years old and not a resident of the Republic since January He only visits the
Republic once a year for a few weeks.
Vujo donated an office block to the trust on February The trust earns rentals from this building.
Sam years old Vujo's older brother, ceded the income from his block of flats to the trust until the
trust dissolves. Sam also donated the following assets to the trust on February :
an investment portfolio consisting of shares in listed companies earning "local" dividends; and
a fixed deposit at a local bank earning interest.
The trust deed stipulates the following:
Thava has a vested right to all the retained office rentals.
The trust is to remain in existence until Joyce attains the age of years. When this occurs, the
income from the block of flats will revert back to Sam, all other assets will be sold, and the
proceeds split equally among the beneficiaries who are still alive.
Any distributions by the trustees are to be made pro rata from all sources of income.
Income and expenditure of the trust for its year of assessment.
YOU ARE REQUIRED TO calculate the taxable income of Thava, Rico, Vujo and Sam as a result of the
incomeaccruals of the trust during the year of assessment.
You may assume that no taxpayer earned any other investment income.
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