Certifiable

Why does the R185 trust income certificate have a box for untaxed income? Surely if untaxed income — whether it be interest rents or other income — passes through the trustees' hands then they have the obligation to meet the tax liability.

Once the trustees have paid the tax on it does it not 'become' net income? If it is mandated direct to the beneficiary is it not simply declared by them for example as rents or untaxed interest rather than trust income?

I had always understood that the R185 only includes income passing through the trustees' hands so mandated income is not included on it or am I wrong? The trustees — or certainly their tax agents preparing the certificate — may not know the rents being received so how could they complete the certificate?

Perhaps this is...