Taxation of Trusts

TL;DR: Hill et al. as discussed by the authors explored various principles of taxing trusts under the Land and Income Tax Act 1956 and analyzed the requirements of Section 155(a) and 155(b) of the Act and the facilitation of income splitting, before turning to consider the shortcomings of section 84A as a plug to the gap of created by the child exemption in personal taxation.

Abstract: With acknowledgment of the growing popularity of the trust as an effective taxation planning vehicle, this article explores various principles of taxing trusts under the Land and Income Tax Act 1956 The author first analyses the requirements of sections 155(a) and 155(b) of the Act and the facilitation of income splitting, before turning to consider the shortcomings of section 84A as a plug to the gap of created by the child exemption in personal taxation The article next considers the application of section 105 to short-term or revocable trusts Lastly, the article considers general points of settlement of personal income by trust, and the use of trusts for this purpose in light of the general anti-avoidance provision contained in section 108 Abstract by Holly Hill