If a discretionary Trust makes a capital gain of R1 million, of which R700,000 of the gain is taxable by applying the Time apportionment basis, & the Trustees resolve to distribute R700,000 of the capital gain, would R490,000 of the amount distributed be a taxable capital gain in the individuals hands (R700,000 x 700,000/1,000,000) & R210,000 (R500,000 x 300,000/1000,000) would be tax free, & R210,000 (R300,000 x 700,000/1000,000) would be the taxable capital gain in the Trust, & R90,000 (R300,000 x 300,000/1000,000) would be tax free in the Trust, or could the Trustees resolve that the full R700,000 distributed be a taxable capital gain in the hands of the beneficiary, & the full R300,000 retained in the Trust is tax free? | |