STY (inter vivos) trust derived $25,000 of interest income and $7,000 in a fully franked dividends...

 

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STY (inter vivos) trust derived $25,000 of interest income and $7,000 in a fully franked dividends during the income year 2020/21. The net trust income was distributed accordingly to the following beneficiaries: (a) $18,000, including the franked distribution, to Brian, who is aged 56 and a resident and has no other income, with (b) the remaining amount distributed to Ted, a 44 year-old non-resident. Required: I Calculate the s. 95 net income of the trust and the tax implications for Brian and Ted citing relevant legislation to support your answer (8 marks) STY (inter vivos) trust derived $25,000 of interest income and $7,000 in a fully franked dividends during the income year 2020/21. The net trust income was distributed accordingly to the following beneficiaries: (a) $18,000, including the franked distribution, to Brian, who is aged 56 and a resident and has no other income, with (b) the remaining amount distributed to Ted, a 44 year-old non-resident. Required: I Calculate the s. 95 net income of the trust and the tax implications for Brian and Ted citing relevant legislation to support your answer (8 marks)

Answer rating: 100% (QA)

The s 95 net income of the trust is 25000 The tax implications for ... View the full answer