CAT

[Roo2004]

I recently received notification that I was being given some money by a great uncle. This money will come from the income earned on a family trust fund.
I was aware that I will be liable for CAT but the bank has also said that I will have to pay Income tax.
Does anyone know whether this is correct? Surely it is either considered Income or a GIFT

Thanks

 

[Capall]

CAT +Income tax

Payments frpm a trust can be subject to both income tax and cat.
Whether the amount is subject to income tax depends on the nature of the payment in your hands. If you are receiving a once off payment from a trust you should be able to argue that the payment is capital not income.
The fact the the payment is out of trust income is irrelevant.
Normally the trustees pay income tax which if you are liable to IT you can offset as a credit.
Whether you are liable to IT also would depend on whether you were getting the income as an appointment from the trust or whether your uncle was getting the income and then gifting it to you.