Section 62: Pensions to former employees

62. Pensions to former employees (1) Subject to subsection (2), the Director-General may, in the case of a company deriving gross income specified in section 10 (1) (b), allow a deduction in respect of any amount which is not deductible otherwise than under this section and which, in the opinion of the Director-General, is reasonable in the particular circumstances of the case, paid by the company in that income year by way of a pension to any former employee in the business of the company, or to the surviving spouse of that employee, in consideration of the past services of that employee in that business of the company, where the Director-General is satisfied that— (a) the pension is receivable by the recipient— (i) by virtue of any enactment; (ii) as of right under a written document for a fixed period or for life; I5 – 46 (1) [Issue 9] Income Tax Act (iii) in the case of the surviving spouse, for a fixed period, or for life, or until he or she remarries; or (iv) on grounds which the Director-General determines to be compassionate grounds; and (b) except in the case of the death of the employee while in the employment of the company, the employee did not retire from his employment before attaining the appropriate retiring age. (2) This section shall not apply where— (a) the employee was or is a director of the company and was not in the full-time employment of the company; or (b) in any other case, because of any relationship to or with the employer or otherwise the former employee or the surviving spouse had or has, in the opinion of the Director-General, any control in relation to the payment of the pension by the company.