OUA Study Period 3, 2022 TAXA2001 BLW32 Introduction to Australian Taxation Law The trust income was distributed as follows: 1. Cindy Lou Who (17) was made specifically entitled to all the franked dividends and received an additional distribution of $15,900 of other income. Cindy had left school in November 2021 and started working full-time in the post office on 15 November 2021. She continued working part- time when she began studying hospitality full-time at TAFE. Her salary from her employer was $12,500 (PAYG withheld of $980). She also received interest of $1,900 from monies she invested from a legacy left to her from her grandmother's estate. 2. Max (25) was made specifically entitled to 100% of the capital gain made by the trust. Max lived off his trust distributions and did not have any other source of income during the year. However, he did have a carried forward capital loss of $16,800 from previous income tax years. 3. The Trustee exercised his discretion and paid $8,500 in respect of school fees for Drew Lou Who (12). 4. 5. Martha May Whovier (52) was to receive a distribution of $30,000. She had no other income for the year. The remaining income was to be held in the Trust for reinvestment purposes Income Dividends from various companies in an extensive share portfolio - Dividends franked to 100% (attached franking credits of $20,700) Unfranked dividends 48,300 15,700 Rental income from a retail complex Lease premium Proceeds from the sale of shares Expenditure Rental property deductions (all deductible under 8-1) Additional information "A 77,000 15,000 45,000 16,980 The Trust owned a retail premises which it rented out. The original tenants moved to a bigger space and the Trust secured new tenants in the current year. The new tenants paid a lease premium of $15,000 as noted above in the income of the trust The Trust sold shares in Bluechip Mining Ltd on 2 February 2022. Proceeds received from the sale was $45,000. The shares were acquired on 6 September 2013 for $23,200. At that time they paid brokerage of $232. The Bones Family Trust was settled by a friend of the family Cam. The trust operates a business of medical supplies to government agencies. The trust has also invested in shares from which it derives dividend income. For the current year ended 30 June 2021, the trust derived the following income: Net trading income (after expenses) from sale of medical equipment 250,000 Dividends franked to 100% with attached franking credits of $21,429 50,000 Capital gain on the sale of the goodwill of a branch of the business (after applying both the general and active asset discount) 55,000 Capital gain on the sale of some shares that have been owned for more than 12 months (after applying the general discount) 5,250 Interest received on bank term deposits 3,500 At the annual meeting the trustee of the trust resolved to distribute the net income of the trust for the year ended 30 June 2021 as follows: At the annual meeting the trustee of the trust resolved to distribute the net income of the trust for the year ended 30 June 2021 as follows: 1. Seeley who is 21 years old is specifically entitled to all the capital gains. Seeley has a carried forward capital loss of $14,000. He has no other income and no CGT events for the current year. 2. Hodgins who is 17 years old is specifically entitled to all the franked dividend income and attached franking credits. Hodgins is also to receive 20% of the other income. Hodgins had left school in December 2020 and had started working fulltime since February 2021 as an intern draftsman whilst studying for his architecture degree at the University. His salary from his employer was $27,500 (PAYG withheld of $2,200). Hodgins also received interest of $2,000 from monies he invested from a legacy left to him from his grandmother's deceased estate. 3. 15% of the other income is to be accumulated for Angela who is 10 years old until she reached the age of 21. However, if she dies before attaining that age, her share would be given to charity. During the year the trustee paid $10,500 towards Angela's school fees. 4. Cam who is 45 years old is to receive 45% of the other income. She has no other income.