Section 79: Principles of taxation for trusts.

(1) The chargeable income of a trust shall be taxed either on the trustee or on the beneficiaries of the trust inaccordance with this Act. (2) A grantor trust or a qualified beneficiary trust shall not be treated as an entity separate from the grantor or beneficiary respectively; and the chargeable income of a grantor trust or qualified beneficiary trust shall be taxed on the grantor or beneficiary and property owned by the trust shall be deemed to be owned by the grantor or beneficiary as the case may be. (3) The chargeable income or allowable loss of a trust shall be calculated as if the trust were a resident individual taxpayer. (4) Separate calculations of the chargeable income or allowable loss shall be made for separate trusts regardless of whether they have the same trustee. (5) Income, expenses or losses derived or incurred by a trustee retain their character as to geographic source and type of income, expense or loss in the hands of the beneficiary. (6) A trust shall file a return of income.