CHAPTER 75:01 - Inland Revenue Division

Income Tax Act Mac 1
Vol. 1
(10) Where an amount is payable by a trustee or trust corporation under an
approved pension fund plan or by a company under an approved deferred
annuity plan for a year of income by way of a refund of contributions or
refund of premiums, as the case may be, there shall be deducted or
withheld a tax equal to ten per cent of the amount payable, and - Amended Finance Act 2002*
(a) that tax shall be paid to the Board by the fifteenth day of the month
following that in which that tax was deducted or withheld;
(b) there shall be payable a penalty of one hundred per cent of the tax
owed for failure to pay to the Board by the fifteenth day of the
month following that in which the tax was deducted or withheld;
and
(c) there shall be payable from the due date, interest at the rate of
twenty per cent a year on the amount of tax remaining unpaid.
(11) Where, at any time after a pension fund plan or deferred annuity plan
has been approved by the Board for the purposes of this Act, the plan is revised
or amended or a new pension fund plan or a new deferred annuity
plan is substituted therefor, and the plan as revised or amended or the new
pension fund plan or the new deferred annuity plan substituted therefor, as
the case may be (hereinafter in either case in this subsection referred to as
the "amended plan") does not comply with the requirements of this section
for its approval by the Board for the purposes of this Act, the following
rules apply -
(a) the amended plan shall be deemed, for the purposes of this Act, not
to be an approved pension fund plan or deferred annuity plan, as
the case may be;
(b) there shall be included in computing the income of a person for a
year of income all amounts received by him in the year that, by
virtue of subsection (9), would have been so included -
(i) if the amended plan had been an approved pension fund plan or
an approved deferred annuity plan, as the case may be, at the
time he received those amounts, and
(ii) if those amounts had been received by him otherwise than by
way of a refund of contributions or a refund of premiums as the
case may be;
(c) there shall be deducted or withheld from any amount paid to a
person, in a year of income as a benefit under the amended plan,
by the person paying that amount, an amount equal to twenty-five
per cent thereof, and Amended Finance Act 2002*
BIR Mac Edition 91/01 Page 53