i am involved with a trust and I filed tax return with R185 information from the trusts accountants for a non-dis payment.
The trust accountants say it an Interest in possision trust, but the trustees may have the power to accumulate the income. so no dispusal of the income has been made.
The Trustees say it an disgressary trust, and they have the power to accumulate, therefore no dispusal is made, other than the tax liability that occurred.
How can both be right?
I read up on the Pearson case, but would there a difference in tax payable by the trust or me and would this explains the confusion?
We have asked to see the trust documents and accounts, since 2010 but they are refusing.
Can anybody please explain what mite be going on?
The trust accountants say it an Interest in possision trust, but the trustees may have the power to accumulate the income. so no dispusal of the income has been made.
The Trustees say it an disgressary trust, and they have the power to accumulate, therefore no dispusal is made, other than the tax liability that occurred.
How can both be right?
I read up on the Pearson case, but would there a difference in tax payable by the trust or me and would this explains the confusion?
We have asked to see the trust documents and accounts, since 2010 but they are refusing.
Can anybody please explain what mite be going on?