CHAPTER 75:01 - Inland Revenue Division

Income Tax Act Mac 1
Vol. 1
(b) the fund or contract - Act No.6 of 1993
(i) allows for the issuance of a loan in respect of such fund or
contract;
(ii) allows for such fund or contract to be used as a security for a
loan; or
(iii) except in accordance with paragraphs (c) or (d), allows for the
commutation in whole or in part, the surrender or the assignment
of the benefits to be derived from such fund or contract.;
(c) a lump sum or gratuity is payable before the employee attains the
age of fifty other than on the death of the employee;
(d) the lump sum or gratuity payable on death or retirement exceeds
twenty-five per cent of the capitalized value of the annual pension or
annuity.
(6C) Subsection (6A) shall not apply to contributions made by an
employer to a group life insurance policy.
(6D) In this section -
"group life insurance policy" means a life insurance policy under
which -
(a) the lives of a group of employees are insured under a single
insurance policy made between a life insurance company and
an employer;
(b) the only benefit payable is a lump sum on death or
disability of the life insured; and
(c) the life insurance policy has no cash surrender value;
"life insurance policy" has the same meaning as in section 34(6).
(7) Any reference in this section to expense incurred in or in connection
with any matter includes a reference to a proper proportion of any expense
incurred partly in or in connection with that matter.
102 (8) Where a motor vehicle or any equipment belonging to a company is
made available to any of its directors or to any person employed by it in an
employment to which sections 133 to 141 apply, and the motor vehicle or
equipment is available for the private use of the director or employee such
102 BIR Note: Effective 1st January 1988.
BIR Mac Edition 91/01 Page 142