53. Deduction for contributions to life assurance, or other retirement benefits
-
(1) Subject to this section, where in any year of income a resident individual makes payments for the future benefit of himself or herself, his or her spouse, children or other dependents—
-
(a) as premiums for insurance on his or her life or the life of his or her spouse or child, or contracts for a deferred annuity on his or her life or the life of his or her spouse or child with an insurance company registered under the Insurance Act; or
-
(b) as contributions under the National Insurance Corporation Act,
he or she is entitled to a deduction in respect of the amount of such expenditure subject to the limits imposed by subsection (2).
-
(2) The deduction allowable under this section shall not exceed the lower of—
-
(a) one-tenth of his or her assessable income; or
-
(b) eight thousand dollars.
-
(3) A deduction is not allowable under subsection (1)(a) in respect of any premium paid under a policy of insurance effected after 1 January 1972, unless—
-
(a) the policy is entered into with a company registered and carrying on business in Saint Lucia; or
-
(b) the policy is effected at a time when the person is not resident in Saint Lucia.
-
(4) Where the deduction claimed under subsection 1(a) is in respect of premium paid under a policy of an insurance effected after January 1972 with a company not doing business in Saint Lucia, the amount allowable as a deduction is 50% of the premium paid to the company. However, the deduction is limited to the higher of—
-
(a) one-twentieth of the assessable income of the individual; or
-
(b) three thousand dollars.
-
(5) Where a policy of insurance to which this section applies is surrendered within 10 years from the date on which it was effected the amount of the benefits paid is not from chargeable income but is to be separately charged to tax in the hands of the insurer who shall—
-
(a) deduct as tax, 10% of such monies prior to payment of the balance to the insuree;
-
(b) pay such tax to the Comptroller, within 15 days after the end of the month in which it was deducted; and
-
(c) furnish to the Comptroller, at the time such payment of tax is made, a statement setting out—
-
(i) the names of all policy holders to whom payments were made,
-
(ii) the amounts of such payments, and
-
(iii) the tax deducted.
-
(6) For the purposes of this section, a policy of insurance includes—
-
(a) a policy providing lump sum benefits; and
-
(b) a policy providing for periodical benefits, upon maturity, but in either case, a deduction under this section is only allowable where the policy is expressed to mature not earlier than 10 years from the date it was effected or on death prior to maturity.
(Amended by Act 18 of 1990)