1

1.The 'Corporate Taxation model Imposes tax on the income of the business entity at entity level B Permits the Tax Commissioner to tax both the company and the shareholder for income distributed to the shareholder Is designed to ensure that shareholders to whom the company pays dividends pay all the tax owing for the dividend income D Is designed to ensure that companies and shareholders always share in equal proportion the tax owing for company income

2.The transfer of a trust's corpus from settlor to trustee is a CGT Event A False B True as long as the trustee signs a waiver guaranteeing that the settlor is not liable for any debts incurred by the trust True D Only if the corpus is valued at greater than $5,000 Question 6 1 Point Trustees may distribute tax losses to beneficiaries A Yes because beneficiaries are equitably entitled to receive the tax benefit of trust losses B False True D Only if the trust deed permits trustees to distribute tax losses to beneficiaries
A beneficiary who has a present entitlement' to a share of trust income A Has an immediate right to demand payment of distributable income B Has a right to payment subject to the trustee's discretion to retain the income in the trust for the next financial year Has a right to request the trustee to distribute income at the trustee's discretion Has an immediate right to payment unless he or she has previously spent time in prison Question 8 1 Point If a beneficiary is presently entitled to a distribution of trust income but is under a legal disability then: A the beneficiary must pay tax on the income distributed B the income is tax-exempt the beneficiary is entitled to a 'legal disability tax deduction' D the trustee must pay the tax on the income distributed.