What if the beneficiary of the trust is a trustee of another trust (e.g. the unit holder of a unit trust is a trustee of a fixed trust)?
Where the beneficiary of the trust is a trustee of another trust (a sub-trust), the provisions enable a “look through” to the ultimate beneficiaries. In the case where the unit holder of a unit trust (first trust) is a trustee of a fixed trust (second trust), the trustee of the unit trust can avoid the surcharge rate by notifying the SRO of the unitholder (i.e. the trustee of the fixed trust). As a consequence of such notification, the trustee of the unit trust will be assessed on the trust land at the general rates. The trustee of the fixed trust (second trust) will be deemed to be the owner of the trust land and will be assessed at the surcharge rate. To prevent double taxation, a deduction for the proportional tax on the trust land will be allowed The surcharge can be avoided if the trustee of the second trust in turn notifies the Commissioner of the beneficial interest of the fixed trust. The beneficiaries of the fixed trust will be regarded as the owner of the land and the ordinar
