TAXATION
LIFESAVER
SUMMARY
WEEK 5 – SPECIAL INCLUSIONS
, CEDED THE SPES
Source rules overrules special inclusions
(a) – Fixed payment
Repetitive
Obligation to pay
Hogan case
(c) – Causal relationship between payment and employment.
Stevens case
Provisos
(c)(i) – Fringe benefit (non-cash things hence cash equivalent)
(c)(ii) – Deemed to accrue to person who does service
(cA) – For awards, see standards
(cB) – In relation to employment (past or future)
(d) – LSB
(d)(i) – Like severance benefits
(d)(ii) – Make sure different from keyman insurance as it’s in GI of employee
(d)(iii) – Ceded
Proviso
(d)(bb) – Amount payable to person after death immediately accrues to them
day before they die.
(f) – LSP once off for e.g. 3 months pay received in 1 day
(gA) – Operating manual and training session, even technical advisory services
, (h) – Only in GI when improvements fully complete
Check contract details, look for words like actual amount, or “at least”,
“minimum”.
(m) – In the GI of employer (key man insurance)
Loans would already be included in GI (when the loan was taken out
therefore don’t double count) – subtract it from policy proceeds.
LIFESAVER
SUMMARY
WEEK 5 – SPECIAL INCLUSIONS
, CEDED THE SPES
Source rules overrules special inclusions
(a) – Fixed payment
Repetitive
Obligation to pay
Hogan case
(c) – Causal relationship between payment and employment.
Stevens case
Provisos
(c)(i) – Fringe benefit (non-cash things hence cash equivalent)
(c)(ii) – Deemed to accrue to person who does service
(cA) – For awards, see standards
(cB) – In relation to employment (past or future)
(d) – LSB
(d)(i) – Like severance benefits
(d)(ii) – Make sure different from keyman insurance as it’s in GI of employee
(d)(iii) – Ceded
Proviso
(d)(bb) – Amount payable to person after death immediately accrues to them
day before they die.
(f) – LSP once off for e.g. 3 months pay received in 1 day
(gA) – Operating manual and training session, even technical advisory services
, (h) – Only in GI when improvements fully complete
Check contract details, look for words like actual amount, or “at least”,
“minimum”.
(m) – In the GI of employer (key man insurance)
Loans would already be included in GI (when the loan was taken out
therefore don’t double count) – subtract it from policy proceeds.
