Trust book entries?

[bicko]

Just a quick question,
so that the concept is clear in my mind.

When distributing profit to beneficiaries, and a book entry is used thus setting up a loan from the beneficiary to the trust.

Question!? Does the beneficiary pay tax on the distribution when they have immediately lent the money back to the Trust.

Cheers

Bicko

 

[DaleGG]

Hi Bicko

Yes, the beneficiaries pay tax, if any, on the distribuition from the trust regardless of whether the take cash or a loan.

Dale

 

[bicko]

Thankyou Dale.
Muchly Aprreciated

Cheers

Bicko