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HC 19: Taxable distributions from non-complying trusts
or “Money from non-complying trusts is taxed separately”
You could also call this:

“Money from complying trusts is usually tax-free”

If you get money from a complying trust, you don’t have to pay tax on it. This is called exempt income. For this rule to apply, the money can’t be from a community trust, and it can’t be what’s called beneficiary income. The law that says this is exempt is in section CW 53. Remember, this only works for money you get in a specific tax year.

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Next up: HC 21: Distributions from community trusts

or “How you're taxed on money from community trusts”
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Part H Taxation of certain entities
Trusts

HC 20Distributions from complying trusts

  1. An amount that a person derives in an income year is exempt income of the person under section CW 53 (Distributions from complying trusts) if—

  2. the amount is a distribution from a complying trust other than a community trust; and
    1. the amount is not beneficiary income.

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