Download This PaperAssessability of Lump Sum Payments on Occasion of Retirement
Recent Law, pp. 276-277, 1981
4 Pages Posted: 2 Mar 2010
Abstract
In Commissioner of Inland Revenue v Smythe [1981] 1 NZLR 673 the Court of Appeal considered whether a lump sum payment provided in lieu of long service leave that had not been taken could be described as a bonus. Section 68 of the Income Tax Act 1976 provides concessional tax treatment for bonuses on retirement. The court held that the payment was a bonus regardless of the fact that the sum was paid pursuant to a contractual obligation.
Keywords: Retirement payments, Income Tax Act 1976, Assessability, Tax breaks for bonuses
JEL Classification: K34
Suggested Citation: Suggested Citation
John Prebble KC (Contact Author)
Victoria University of Wellington, Te Herenga Waka - Faculty of Law ( email )
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Institut für Österreichisches und Internationales Steuerrecht, Wirtschaftsuniversität Wien ( email )
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