Income Trusts Are Structured Such That Income Is Taxed in the Hands

question 19

Multiple Choice

Income trusts are structured such that income is taxed in the hands of the:

• A) income trust.
• B) operating entity.
• C) unitholders.
• D) there is no tax on income trusts.

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Definitions:

Genetic Basis

The underlying genetic composition that contributes to the traits or conditions of an organism.

Fraternal Twin

Siblings that are born at the same time but have developed from two different eggs fertilized by two different sperm, leading to them being genetically distinct, similar to regular siblings.

IQ Scores

Quantitative measures of a person's intelligence relative to others, based on standardized tests assessing various cognitive abilities.

Identical Twin

A twin that shares the same genetic material with their sibling due to having developed from a single fertilized egg that split.