Taxation of distributed income: business trust distributions retain their character and are taxed in the hands of unit holders. Distributed income of a business trust is deemed to retain the same nature and proportion in the hands of the unit holder and is taxed as such; specified categories of distributed amounts referenced in Schedule V are charged to tax in the unit holder's tax year, certain excluded sums are not subject to the pass through rule, the trust's total income is taxable at the maximum marginal rate subject to withholding rules, and payors must furnish prescribed statements detailing the nature of distributions to unit holders and the authority.