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Test Prep / AP Practice Test - 5/23/2026
10 Qs20 min

AP Practice Test - 5/23/2026

Practice test covering 10 questions in 20 minutes. All questions are multiple-choice.

The AP Practice Test - 5/23/2026 is designed to help students practice with exam-style questions and improve their test-taking skills. This practice test covers 10 questions in 20 minutes, allowing learners to experience the format and timing of real assessments while identifying areas that need further review.

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1

Who is responsible for carrying the tax matters of a trust?

A:The donor
B:The beneficiary
C:The trustee
D:The SARS official
2

Which type of trust does Section 7 NOT apply to?

A:Lifetime discretionary trusts
B:Inter vivos special trusts
C:Testamentary trusts
D:Non-discretionary lifetime trusts
3

What is a 'vested right' in trust law?

A:A right that the beneficiary will definitely receive income whether paid out or not
B:A discretionary right held by the trustee
C:A right that lapses upon the beneficiary's death
D:A right that only applies to non-discretionary trusts
4

Which tax rate applies to normal trusts?

A:Individual sliding scale
B:Flat 45%
C:Corporate tax rate
D:No tax
5

What is the tax consequence of transferring a fixed property asset to a trust where VAT is levied by the seller?

A:Both VAT and transfer duty are payable
B:Only transfer duty is payable
C:Only VAT is payable, purchaser exempt from transfer duty
D:No tax or duty is payable
6

According to the conduit pipe principle, how is income flowing through a trust treated for tax purposes?

A:Income loses its identity once received by the trust
B:Income retains its identity until taxed in the hands of beneficiaries
C:Trust is always taxed on all income regardless of distribution
D:Income is taxed twice, first at trust then beneficiary level
7

When is the income of a trust taxed if it is retained and accumulated rather than distributed?

A:Taxed in the year it is distributed to beneficiary
B:Taxed in the year it is earned by the trust
C:Not taxed at all
D:Taxed only when beneficiary withdraws funds
8

Which of the following income types is normally exempt from tax for individuals but not necessarily within trusts?

A:Local dividends under s10(1)(k)
B:Foreign dividends under s10B
C:Foreign interest income
D:Local interest income above R23,800
9

Under Section 25B, who is liable for tax on trust income when a beneficiary has a vested right?

A:The trust only
B:The donor or beneficiary
C:The trustee only
D:The SARS commissioner
10

Which of the following best describes a 'special trust'?

A:A trust where the beneficiary is a minor without disabilities
B:A trust established for beneficiaries with mental illness or serious physical disability
C:A trust that is only testamentary and not lifetime
D:A non-discretionary trust for any beneficiary