Section 10A: Employees’ Real Estate Investment Trust

10A. Employees’ Real Estate Investment Trust (1) There shall be a unit trust scheme which shall be known as the Employees’ Real Estate Investment Trust and which shall be deemed to be an authorised scheme for the purposes of the Unit Trust Act. (2) The objects of the Trust shall be, directly or through such body controlled by it as may be approved by the Minister, to purchase, lease or otherwise acquire land, manage, develop and sell, transfer or otherwise dispose of such land, and do all other things as are incidental thereto and connected therewith, for the promotion of the welfare and benefit of employees. E8 – 3 [Issue 1] Employees’ Welfare Fund Act (3) Notwithstanding section 10 (1) (b), a sum of 350 million rupees in cash or its cash equivalent shall, on the setting up of the Trust, be transferred from the Fund to the Trust for investment in the manner referred to in subsection (2). (4) In consideration of the transfer referred to in subsection (3), the Trust shall issue to every person who is an employee as at 30 June 2004 one unit in the Trust. (5) For the purposes of the Sugar Industry Efficiency Act, the Employees’ Real Estate Investment Trust shall be a specified entity and shall accordingly be exempt from any duty, tax or fee payable under— (a) the Registration Duty Act; (b) the Stamp Duty Act; (c) the Land (Duties and Taxes) Act; (d) the Morcellement Act; and (e) the Sugar Industry Efficiency Act in respect of land conversion tax. (6) Any unit issued under subsection (4) shall be exempt from registration duty under the Registration Duty Act. (7) The income of the Employees’ Real Estate Investment Trust and the value of any unit received by an employee under the National Savings Fund Act from, or any distributions made by, the Employees’ Real Estate Investment Trust shall be exempt from income tax. (8) In this section— “employee” has the same meaning as in the National Savings Fund Act; “Trust” means the Employees’ Real Estate Investment Trust. [S. 10A inserted by s. 7 of Act 28 of 2004 w.e.f. 26 August 2006.]