Common use of Deduction of Tax and other amounts Clause in Contracts

Deduction of Tax and other amounts. (a) The Trustee may deduct the following amounts from a Unit Holder’s share of the Distributable Amount: (i) Tax paid, or which the Trustee anticipates will be payable, by the Trustee on account of, or in respect of, the Unit Holder on the amount of the Distributable Income otherwise distributable to that Unit Holder; (ii) a charge made by a person on account of Tax imposed in respect of amounts received from that Unit Holder or paid to the Unit Holder during the Distribution Period; and (iii) any other amount the Trustee is required by law to deduct, and all amounts deducted must be applied in reimbursing the Trust for any corresponding amount paid or reimbursed out of the Trust or reimbursing the Trustee for the payment of the Tax to the person or authority entitled to the Tax. (b) A Unit Holder is only entitled to be paid the Unit Holder’s share of the Distributable Amount less the amount the Trustee deducted under clause 12.7(a).