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Home / Simons-Taxes /Personal and employment tax /Part E4 Employment income /Division E4.10A Disguised remuneration /Disguised remuneration—relevant steps / E4.1058 Disguised remuneration—relevant steps—earmarking, payment and making an asset available
Commentary

E4.1058 Disguised remuneration—relevant steps—earmarking, payment and making an asset available

Personal and employment tax

The circumstances mentioned in E4.1057 are described below.

Earmarking etc of sum of money or asset

This provision is designed to catch situations where a fund is set aside for an employee (perhaps via a sub fund of an Employee Benefit Trust (EBT)) and imposes a charge at that point, ie before the employee has necessarily had a benefit from that fund. The mere fact of earmarking is sufficient to create a relevant step.

A person (P) takes a relevant step if1:

  1. Ìý

    (a)ÌýÌýÌýÌý a sum of money or asset held by or on behalf of P is earmarked (however informally) by P with a view to a later relevant step being taken by P or any other person in relation to that sum or asset (or any sum or asset derived from it), or

  2. Ìý

    (b)ÌýÌýÌýÌý a sum of money or asset otherwise starts being held by or on behalf of P, specifically with a view, so far as P is concerned, to a later relevant step being

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