Question $2$

$[30$ marks$]$

Ashante Trust $($family trust$),$ a discretionary inter vivos trust, had the following assets;

A flat $($accommodation$)$ which was purchased at market value by the trust and

A money market account which arose from a R$1500000$ donation from Mr Kane $($aged $66).$

The trust earned the following income in the year ended $29$ February $2024$:

Rental income on flat R$300000$

Interest income on the money market account R$100000$

The following distributions were made to the beneficiaries $($Mr Kane's children$)$ on $29$ February $2024$:

Bianca $($aged $16)$: R$90000$

Cristiano $($aged $26)$: R$50000$

The remainder of the income was retained in the trust.

$4$

Required:

a$)$ Calculate the trust's tax liability.

$(15$ marks$)$

b$)$ Calculate the amount of taxable income to be included in Bianca's, Cristiano's and Mr Kane's taxable income as a result of the above transactions $($assuming these individual's had no other interest income$).$

$(15$ marks$)$