Rationalisation of Corporate Laws Act, 1996
R 385
"severance benefit"
means any amount (other than a lump sum benefit or an amount contemplated in paragraph (d)(ii) or (iii) of the definition of "gross income") received by or accrued to a person by way of a lump sum from or by arrangement with the person’s employer or an associated institution in relation to that employer in respect of the relinquishment, termination, loss, repudiation, cancellation or variation of the person’s office or employment or of the person’s appointment (or right or claim to be appointed) to any office or employment, if—
| (a) | such person has attained the age of 55 years; |
| (b) | such relinquishment, termination, loss, repudiation, cancellation or variation is due to the person becoming permanently incapable of holding the person’s office or employment due to sickness, accident, injury or incapacity through infirmity of mind or body; or |
| (c) | such termination or loss is due to— |
| (i) | the person’s employer having ceased to carry on or intending to cease carrying on the trade in respect of which the person was employed or appointed; or |
| (ii) | the person having become redundant in consequence of a general reduction in personnel or a reduction in personnel of a particular class by the person’s employer, |
unless, where the person’s employer is a company, the person at any time held more than five per cent of the issued shares or members’ interest in the company:
[Paragraph (c) substituted by section 7(1)(zL) of the Taxation Laws Amendment Act, 2011 (Act No. 24 of 2011) - effective 1 April 2012]
Provided that any such amount which becomes payable in consequence of or following upon the death of a person must be deemed to be an amount which accrued to such person immediately prior to his or her death;
[Definition substituted by section 7(1)(zK) of the Taxation Laws Amendment Act, 2011 (Act No. 24 of 2011) - effective from 1 March 2012]
