Page 26 - P6 Slide Taxation - Lecture Day 6 - Retirement Benefits Lump Sums
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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?

                                                             Refer Silke p. 417
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