In this episode, we dive into the taxation of capital gains in multi-tiered trust structures, focusing on the Constitutional Court's landmark Thistle Trust v SARS case. We explain how the Conduit Principle usually allows income or gains to flow through to beneficiaries, reducing tax liability, but highlight the limits when one trust distributes gains to another. The Court confirmed that only the first beneficiary trust can apply the Conduit Principle, leaving subsequent trusts liable for tax. A must-listen for anyone involved in trust structuring, estate planning, or tax strategy in South Africa.