Let's say I run a company that makes $10,000 profit. The shares in the company are owned by a discretionary trust of which I am a beneficiary. How do I (from an accounting point of view), take that $10,000 and use it in the trust ? Would it be a dividend ? Would the company have to pay tax on it, or can I let it be passed on to the trust untaxed - so the full tax liability passes to the trust ? Example - if I have losses in my trust, could I then use that $10,000 not-yet-taxed income from the company to offset the losses in the trust, hence leaving a smaller amount (or even zero) taxable income to be distributed to the beneficiaries ? ... or does the company have to pay tax on that profit regardless (for which the shareholders or eventual beneficiaries then get credit) ?