Minister of Finance Chris Sinckler goes to the House of Assembly today at 10 a.m. with amendments to the Income Tax Act to get legislative authority for proposals made in his 2010 and 2011 Budgets, especially to remove conflicts relating to pension benefits.
In his August 16, 2011 Budget, Sinckler noted that prior to the proclamation of the Occupational Pensions Benefit Regulation on?April 1, pensions which were registered under the 1969?Income Tax Regulations were granted tax free status.
That meant that no more than 25 per cent of the benefits payable may be commuted and paid in the form of a tax free lump sum.
However, he said that to ensure there were no conflicts between the Income Tax Regulations and those of the Occupational Pensions Benefit Regulation, the Income Tax Regulations were repealed.
The benefits regulations, while making provision for the commutation of pensions benefits on retirement, does not, however, make specific provision for a similar tax free basis for the payment in the form of a lump sum.
Read the full story in today’s WEEKEND NATION.
