A Discretionary Trust Had a Large Amount of Trust Net

A discretionary trust had a large amount of trust net income it needed to distribute and had recently acquired a unit trust, that had accumulated tax losses, and so the trustee of the discretionary trust sought to distribute most of the income of the discretionary trust to the unit trust. The attempted distributions of trust income were never in fact made. How is this arrangement likely to be seen by a court?

A) As a sham and therefore of no legal effect
B) As a sham and so effective for tax purposes
C) As a genuine trust arrangement that cannot be challenged
D) As serious tax evasion