Taxation of discretionary trusts: indeterminate beneficiary shares attract maximum marginal rate unless narrow association of persons exceptions apply. Income received by trustees where beneficiaries or their shares are indeterminate is chargeable at the maximum marginal rate, subject to specific exceptions permitting taxation as if the income were the total income of an association of persons. Exceptions include absence of other taxable income for beneficiaries or other trusts, sole testamentary trust status, bona fide non testamentary trusts for dependent relatives or family, and bona fide employer benefit funds. Charitable income not exempt under applicable provisions is taxed as association income or at the maximum marginal rate where disqualification provisions apply. Beneficiary identity and share must be expressly stated to avoid deeming rules.