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7.4.2. Trusts

Losses incurred by a business carried on through a trust may not be distributed to beneficiaries under any circumstances. Rather, they are kept in the trust and may be offset against future net trust income, subject to certain conditions regarding ownership, control, pattern of distributions and income injection, the application of which depends on the nature of the trust (i.e. whether it is a non-fixed trust, family trust, or fixed trust).