QUESTION $3[30$ MARKS$]$

On $1$ February $2022$ Paul Zondo $(58$ years$)$ created a trust for the benefit of his

three children $($James$,$ Chloe and Taku$)$:

$$ James is $16$ years old unmarried.

$$ Chloe is $20$ years old and married; and

$$ Taku is $23$ years old and not a resident of the Republic since January $2020.$

He only visits the Republic once a year for a few weeks.

Paul donated an office block to the trust on $28$ February $2022.$ The trust earns

rentals from this building.

Peter $(66$ years old$),$ Paul$$s older brother, ceded the income from his block of flats

to the trust until the trust dissolves. Peter also donated the following assets to the

trust on $28$ February $2022$:

$$ 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:

$(1)$ Chloe has vested right to all the retained office rentals.

$(2)$ The trust is to remain in existence until James attains the age of $25$ years. When

this occurs, the income from the block of flats will revert back to Peter, all other

assets will be sold, and the proceeds split equally among the beneficiaries who

are still alive.

$(3)$ Any distribution by the trustees is to be made pro rata from all sources of

income.

Income and expenditure of the trust for its $2023$ year of assessment:

Donor: Donor: Donor: Donor:

Total Paul Peter Peter Peter

Rent$($offices$)$ Rent$($flat$)$ Interest Dividends

R R R R R

Receipts and accruals $6000003360001860004200036000$

Ration as percentage $100\%100\%100\%100\%100\%$

Less: Distributions

$-$ James $(60000)(33600)(18600)(4200)(3600)$

$-$ Chloe $(30000)(16800)(9300)(2100)(1800)$

$-$ Taku$($non$-$resident$)(15000)(8400)(4650)(1600)(900)$

Retained receipt and accruals

$4950002772001534503465029700$

YOU ARE REQUIRED TO :

Calculate the taxable income of Chloe, Taku, Paul and Peter as a result of the income

$/$accruals of the trust during the $2023$ year of assessment. You may assume that no

taxpayer earned any other investment income.