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Taxation of Trusts - Different Types of Trusts

This webinar on demand is part of a series of webinars. Click here to read more

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Overview

This video provides an overview of the fundamental requirements for a valid trust structure, such as how the trust was formed, ownership of assets, beneficiary rights, trustee powers, and tax classification. It explains the conduit principle which states that income retains its nature when passing through a trust in that year of assessment. The video differentiates between attribution, distribution, and vesting of trust income/gains. It covers the computation of taxable amounts for attribution to the donor, distribution to beneficiaries, and amounts taxed in the trust itself under different scenarios. Examples illustrate the calculations and tax implications. Trustees' reporting responsibilities and documentation requirements are also discussed.

This video is based on tax law for the year ending 28 February 2025.

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Video Content

• Understanding the different types of trusts.
• Exploring how trusts can be capitalised and the consequent impact on the taxation of income and capital gains, as well as the responsible party for tax payment.
• Discussion on donor funding and the calculation of Section 7C tax liability.
• Provisional tax and trusts.

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Competencies Developed in this Micro Learning Course

• Understanding the different types of trusts
• Understanding the various tax types affecting trusts, along with the related parties such as funders/donors and beneficiaries.
• Understanding why trusts are considered taxpayers of last resort.
• Understanding the conduit principle and how to determine the net taxable income and/or capital gain to be vested/distributed.