John and Jim Page Operate a Bookshop in Partnership

John and Jim Page operate a bookshop in partnership. The partners do all the work and do not employ anybody. On the advice of their accountant they settled (created) a discretionary trust with a corporate trustee and themselves and their immediate family members as beneficiaries. It was intended that the trustee would provide management services to the bookshop for a fee and the profits of this management would be distributed to the beneficiaries in accordance with their marginal tax rates. Their accountant made journal entries into the books of the partnership and the trust to effect fees for services provided and the trustees resolved to distribute all the profits to tax advantaged beneficiaries.
Comment on the effectiveness of this arrangement for tax purposes.