| Description of issue |
Restrictions on imputation credits attached to trust
distributions sourced from dividends
Give examples: Trustee derives a fully imputed cash dividend, 70
cash 30 credits, which will be passed through to the sole
beneficiary (an individual) after trust expenses for the year of
say 35 cash have been met. If only section LE 5 applies, the
trust will distribute 35 cash 30 credits to the beneficiary. If
sections LE 5 and LE 8 apply, trust would distribute 35 cash 15
credits. (Refer to supporting letter.) |
