Reference no: EM133513463

Question

Mrs Naidoo is a beneficiary of a South African trust, the Naidoo Family Trust. The Naidoo Trust, in turn, is a beneficiary of another Trust, the Thaba Nchu Trust. During April 2022, the Thaba Nchu Trust sold certain of its trust owned assets. The disposal of these assets triggered a capital gain of R1 200 000 in the hands of the Thaba Nchu Trust. The Thaba Nchu Trust distributed the capital gain to the Naidoo Family Trust, who, in turn, distributed the gain to its beneficiary, Mrs Naidoo, in the same tax period. She is unsure if she should declare the gain received in her own tax return. Advise Mrs. Naidoo on the capital gains tax implications on each of these separate transactions with reference to relevant legislation, and where applicable, case law.