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1.The 'Corporate Taxation' model A Imposes tax on the income of the business entity at entity level (? 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.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' the trustee must pay the tax on the income distributed.
1.
The answer of the above question is (A) Imposes Tax on the income of the business entity at entity level.
The reason for selecting this answer is because a corporate tax is a tax imposed on the net profit of a corporation that are taxed at the entity level in a particular jurisdiction. Net profit for corporate tax is generally the financial statement net profit with modifications, and may be defined in great detail within each country's tax system. Such taxes may include income or other taxes. The tax systems of most countries impose an income tax at the entity level on certain type(s) of entities (company or corporation). The rate of tax varies by jurisdiction. The tax may have an alternative base, such as assets, payroll, or income computed in an alternative manner. (Reference - Wikepedia Section of Corporate Taxation).
2.
D) Trustee must pay the tax on the income distributed
Trust income is taxed primarily in the hands of the beneficiary receiving or being “presently entitled to” income from the trust. On the other hand, the trustee is assessed as trustee in respect of income of a person under legal disability.Where a beneficiary who is under a legal disability is presently entitled to a share of the trust income, the trustee is assessed and liable to pay tax in respect of so much of that share of the net income of the trust as is attributable to a period when the beneficiary was resident or, in respect of any period when the beneficiary was not resident, the share of net income of the trust attributable to sources in that country.
