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Trusts (Anti- Avoidance - S7 :red_cross: (S7(2): Income of Spouses (one…

- - - - Due and payable to person
      - Credited to person
      - Reinvested, capitalised or accumulated on their behalf
      - Dealt with in his/her name
- - - - If disposition contains APPRECIABLE elements of GRATUITOUSNESS and PROPER consideration
- - - - Deduction/Allowance in calculating taxable income
      - Deemed to be a deduction in hands of person deemed to have received or accrued amount
    - - Deductions limited to income
    - - due to decision of trustee
      - amount deemed to be for benefit of beneficiary
      - Where beneficiary has a vested right to an amount
    - - Excess of expenditure over income on S25B(4)
      - Deducted by trust in the next year
      - BUT limited to the taxable income of the trust before deductions of such expenditure
    - - Any amount received or accrued to or in favour of any person
      - subject to S7
      - Derived for future or immediate benefit
      - of an ascertained beneficiary who has a vested right
      - Deemed to be an amount received by the beneficiary
      - Otherwise deemed to be accrued to the trust
    - - if the trust cannot absorb the full deduction or allowance disallowed
      - excess may be granted as a deduction to the beneficiary in the next YoA
      - subject to same limitation of S25B(4)
- - - - where a donor (also known as settler, founder or creator))
      - Transfers asset
      - A Contract
      - to trustees
    - - Any person having administrative control of property subject to a trust
    - - Formed for one of the following
        
        A person with a disabiltiy as defined in S18(3)(medical expenses deductions)
        
        can be created for more than one person
        
        Only ceases to be a special trust when all beneficiaries are deceased
        
        I.t.o. will of a deceased person
        
        solely for the benefit of relatives who are alive on dtae of death of perosn (including yhose conceived but not yet born)
        
        Has to have beneficiary under 18 at year end of trust :!:
        
        Once the youngest turn 18 = no longer a special trust :forbidden:
        
        Tax
        
        As same individuals
        
        Not entitled to any personal rebates
        
        CGT at 40%
    - - Trust is subject to tax in its own right
    - - Person who has a vested or contingent interest in all or a portion of the receipts or the assets of that trust
    - - Established in S.A.; OR
      - Has its place of effective management in the Republic
    - - (b) in relation to trusts:
        (1) any beneficiary of the trust
        (2) any connected person in relation to
        a beneficiary
      - (bA) persons who are connected person in relation to the trust are connected persons in relation to each other.