Common use of Income of Trust Clause in Contracts

Income of Trust. (a) The income of each Trust for each Financial Year will include: (i) any amount (including a profit made by the Trustee) which is included in the assessable income of the Trust for the purposes of the Taxation Act (other than Part IIIA); (ii) any realised capital gains derived by the Trustee to the extent to which the same are reflected in the net capital gain (if any) calculated under Part IIIA of the Taxation Act which is included in the assessable income of the Trust for the purposes of the Taxation Act, and otherwise will be determined in accordance with Approved Accounting Standards. All periodic income of the Trust will be deemed to accrue from day to day and will be brought to account as arising on a daily basis where that is required for tax purposes (using a daily accruals method of accounting where that is the method required for tax purposes). (b) The expenses of each Trust for each Financial Year will include losses or outgoings which are allowable deductions in calculating the net income of the Trust under Section 95(1) of the Taxation Act and otherwise will be determined in accordance with Approved Accounting Standards. All periodic expenses of the Trust will be deemed to accrue from day to day and will be brought to account on a daily basis where that is required for tax purposes (using a daily accruals method of accounting where that is the method required for tax purposes). (c) The Manager will determine the Net Accounting Income for each Trust for each Financial Year by applying against the income of the Trust for that Financial Year: (i) so much of the expenses specified in paragraph (b) as are referable to that Financial Year; and (ii) any Net Accounting Loss carried forward from a preceding Financial Year. The balance of the income of the Trust for the Financial Year remaining after those applications will constitute the Net Accounting Income for that Financial Year except where the amount is negative, in which case, it will be the Net Accounting Loss for that Financial Year. (d) The Net Accounting Income in respect of a Financial Year for each Trust will constitute the distributable income (Distributable Income) of the Trust for that Financial Year.