Individuals who pay tax on the income distributed to them may have received that income from a:
A) sole trader.
B) partnership.
C) trust.
D) all of the above.

Question

Quizplus · Accepted Answer

Individuals can receive taxable income from a sole trader (as the sole proprietor themselves or as wages), a partnership (as a partner receiving distributions or as an employee), and a trust (as beneficiaries). Each of these entities can distribute income to individuals, which may then be subject to tax.

Individuals Who Pay Tax on the Income Distributed to Them