Assessment of discretionary trusts under section 164/166 - Correct procedure therefor

Option to tax trust income: once the department chooses trustees or beneficiaries, that income may be charged only once.

Where the tax department elects to assess trust income in the hands of either trustees or beneficiaries, that choice governs liability for the assessment year and the same income must not be assessed again in the hands of the other person; inclusion of the trust share in a beneficiary's total income for rate purposes after the trustees have been assessed would amount to a second assessment and is inconsistent with the statutory scheme.