Page 7 - P6 Slide Taxation - Lecture Day 7 - Various Topics
P. 7

Lump sum? [LS]

                                 Work                                                     Retirement



            Receive retirement lump sum                                     Receive retirement lump sum

                      withdrawal benefit                                                 benefit (RLSB)




                      Circumstances?                                                  Circumstances?

         - Quit or withdraw from fund                                      - Reaches retirement age and

            before retirement date                                            retires.

         - At liquidation

         - Death (before retirement date)




                                         Who pays out the lump sum?


                 Employer                           Private sector fund                             Public sector fund



                                                      s 1, GI, par (e)
      s 1, GI, par (d) or (f)                                                                  s 1, GI, par (e) or (eA)

      Includes gross amount                           Includes net amount.                     For (e): include net amount.
                                                                   nd
      Severance benefit?                              Apply 2          Schedule.               Apply 2      nd  Schedule par 2A.

                                                                                               Apply table for RLSB or RLS
      Yes: RLSB tax table                             Apply table for RLSB or
      No: normal tax table for                        RLS withdrawal                           withdrawal benefits.

              NP                                      benefits.                                If (eA), no 2 Schedule.
                                                                                                                   nd
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