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Do you mean that you will get a tax expert is going to respond to me? Amanda
Hi. Thanks for your question. Should you find the answer below incomplete or you are not fully answered, please drop a reply before rating.The tax treatment follows the nature of the arrangement you have in place -the ticking on the boxes is only following the facts on the ground. Indeed the income tax on discretionary tax is 50% even if the funds by pass the trust. The devil is in the trust deed and the intention of the settlor setting trust ie is it a disrectionary trust???A discretionary trusts is a discretionary in two respects - (i) the trustees have the power to determine which beneficiaries (from within the class) will receive payments from the trust. or (ii) trustees can select the amount of trust property that the beneficiary receives.Could you take a look at the trust deed and let me know what you have and i will add more detail to my answer. Thanks.Regards