$1\mathrm{.}2$On $15$March $2021,$Amanda Sharpe $(60$years old$)$created a trust for the benefit of her three children $($Kevin$,$Ewayne$,$ and Sean$)$: $$Kevin is $17$years old, unmarried and a resident of the Republic. $$Ewayne is $21$years old, married and a resident of the Republic. $$Sean is $25$years old and has been a non$-$resident of the Republic since July $2019.$He visits the Republic once a year for a short period. Amanda donated a commercial building to the trust on $31$March $2022.$The trust earns rental income from this building. Mark $(68$years old$)$resident$,$ Amanda$$s older brother, ceded the income from his residential flats to the trust until the trust dissolves. Mark also donated the following assets to the trust on $31$March $2022$: $$A portfolio with shares in listed companies earning "local" dividends$$and $$A fixed deposit at a local bank earning interest. The trust deed contains the following provisions: $1.$Ewayne has a vested right to all the retained rentals from the commercial building. $2.$The trust will remain in existence until Kevin reaches the age of $26$years$.$ Upon this event, the income from the residential flats will revert back to Mark, and all other assets will be sold, with the proceeds equally divided among the surviving beneficiaries. $3.$Any distribution made by the trustees is to be allocated proportionally from all sources of income. The trust's income and expenditure for the $2023$year of assessment are as follows: Total Donor: Amanda $($Rent $-$commercial$)$Donor: Mark $($Rent $-$residential$)$Donor: Mark $($Interest$)$Donor: Mark $($Dividends$)$R R R R R R Receipts and Accruals $5000002800001400005000030000$Ratio as percentage $100\%100\%100\%100\%100\%$Less: Distribution Kevin $(78000)(45000)(25000)(5000)(3000)$Ewayne $(146500)(80000)(50000)(10000)(6500)$Sean $($nonresident$)(168000)(95000)(50000)(15000)(8000)$Retained receipt and accruals $10750060000150002000012500$YOU ARE REQUIRED to calculate the taxable income of Ewayne, Sean, Amanda, and Mark as a resultof the income$/$accruals of the trust during the $2023$year of assessment. Assume that no taxpayer earned any other investment income.

To calculate the taxable income for each individual, we need to consider the income distributions from the trust and how they are taxed based on the residency and the nature of the income.

$1.$ Ewayne's Taxable Income

Ewayne is a resident and has a vested right to the retained rentals from the commercial building. The distribution to Ewayne is as follows:

Rent from commercial building: R$80,000$ Rent from residential flats: R$50,000$ Interest: R$10,000$ Dividends: R$6,500$

Ewayne's taxable income will include:

Rent from commercial building: R$80,000($fully taxable$)$ Rent from residential flats: R$50,000($fully taxable$)$ Interest: R$10,000($fully taxable$)$ Dividends: R$6,500($local dividends may be subject to a reduced tax rate or exemption, depending on local tax laws$)$

Assuming local dividends are exempt or taxed at a reduced rate, Ewayne's taxable income is:

$2.$ Sean's Taxable Income

Sean is a non$-$resident, and his taxable income will only include South African$-$sourced income. The distribution to Sean is as follows:

Rent from commercial building: R$95,000$ Rent from residential flats: R$50,000$ Interest: R$15,000$ Dividends: R$8,000$

Sean's taxable income will include:

Rent from commercial building: R$95,000($fully taxable$)$ Rent from residential flats: R$50,000($fully taxable$)$ Interest: R$15,000($fully taxable$)$ Dividends: R$8,000($local dividends may be subject to a reduced tax rate or exemption, depending on local tax laws$)$

Assuming local dividends are exempt or taxed at a reduced rate, Sean's taxable income is:

$3.$ Amanda's Taxable Income

Amanda is the donor of the commercial building