Eligibility for superannuation fund benefits restricted to whole time bona fide employees without significant beneficial shareholding; nonqualifying contributions lose deductions. Directors qualify for approved superannuation fund benefits only if they are whole time bona fide employees and do not beneficially own shares above the specified voting threshold. Contributions for directors who fail either condition are not deductible as employee or employer contributions; such amounts do not vest as taxable income in the year of contribution but become taxable when due and are not eligible for the fund exemption. Commissioners must review approvals, issue show cause notices, require segregation of non qualifying contributions and pursue remedial measures for wrongful deductions.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Eligibility for superannuation fund benefits restricted to whole time bona fide employees without significant beneficial shareholding; nonqualifying contributions lose deductions.
Directors qualify for approved superannuation fund benefits only if they are whole time bona fide employees and do not beneficially own shares above the specified voting threshold. Contributions for directors who fail either condition are not deductible as employee or employer contributions; such amounts do not vest as taxable income in the year of contribution but become taxable when due and are not eligible for the fund exemption. Commissioners must review approvals, issue show cause notices, require segregation of non qualifying contributions and pursue remedial measures for wrongful deductions.
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