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BCR031 - Income distributed by a discretionary trust and benefit units allocated to beneficiaries

24 October 2011   (0 Comments)
Posted by: SAIT Technical
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Binding Class Ruling 031

INCOME TAX ACT, NO. 58 OF 1962 (the Act)

SECTION : SECTIONS 1, DEFINITION OF "GROSS INCOME”, 8C AND10(1)(k)(i)

SUBJECT : INCOME DISTRIBUTED BY A DISCRETIONARY TRUST AND BENEFIT UNITS ALLOCATED TO BENEFICIARIESBY VIRTUE OF EMPLOYMENT

This ruling deals with the question as to whether

- dividends received and distributed by a trust will retain its nature as dividends in the hands of the beneficiaries of the trust; and

- beneficial units allocated to beneficiaries will constitute equity instruments in their hands.

 

To access the ruling, click here


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