A trustee of a discretionary trust may treat unrealised gains on investments as 'income' for the purposes of the trust deed where such treatment is permissible according to commercial accounting standards and principles, even without a specific determination under a capital/income classification power. Acceptance and adoption of annual financial accounts prepared on a market value basis by the controlling mind of a corporate trustee is sufficient to constitute a valid determination to treat unrealised gains as income. What constitutes 'income' under a trust deed is informed by commercial accounting standards, not confined to taxation law concepts.
The full text is available to signed-in members, including the 8 later cases that cite this judgment.
3 of the 8 citing cases carry a classified treatment. How each court treated it is available to signed-in members.