Fourie v Eskom Pension and Provident Fund (18/1355)
Fourie v Eskom Pension and Provident Fund (18/1355) [2019] ZAGPJHC 188 (6 June 2019)
The court held that, in terms of the Pension Funds Act and the Income Tax Act, the tax liability arising from the assignment of pension fund interest to a non-member spouse pursuant to a divorce order accrues to the member spouse. The court relied on the Russow v Reid precedent and SARS General Note 33, which confirm that the member is liable for the tax, even if the benefit is paid to the non-member spouse. The Plaintiff's remedy would have been to recover the tax from her ex-husband, but this was not possible as his estate had been sequestrated. The Defendant's calculation of the Plaintiff'…
Source excerpt
- Divorce Settlement
- Pension Fund Interest
- Income Tax Liability
- Service Adjustment
- Costs Order