Section 590: Annuities
2365.This section applies to annuities paid by former approved superannuation funds. It derives from section 608(4) of ICTA.
2366.“Former approved superannuation fund” means an occupational pension scheme that was approved under section 208 of ICTA 1970. These schemes lost their approval in 1980 when the code for retirement benefit schemes in Chapter 1 of Part 14 of ICTA took full effect. But section 608 of ICTA allows a scheme approved under section 208 of ICTA 1970 to remain exempt from income tax on its fund income provided two conditions are met. First, no further contributions are made into the scheme. Second, no changes are made to the scheme rules.
2367.The section uses the same language as section 580 to identify the arrangements under which the annuities are paid.
