Page 25 - P6 Slide Taxation - Lecture Day 7 - Various Topics
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DIVORCE ORDER
Spouse 1
(member of Lump sum is paid to… Spouse 2
a fund) from the minimum individual
reserve of spouse 1.
• Spouse 2 has the choice between:
1. Money to be paid out to him/her.
2. Money to be paid on his/her behalf to
another fund.
• Tax implications of choices 1 & 2:
• Taxed as a pre-retirement lump sum benefit
(withdrawal benefit) in the hands of spouse 2 as
well as a possible par 6 deduction.
• When will the amount accrue to spouse?
• The day it becomes due and
payable. [see par 2(2)(a)]
• Administrative responsibilities?
