Compensation for loss of employment is:
AFully chargeable to personal income tax
BExempt from personal income tax
CChargeable to capital gains tax on the excess over the statutory exemptionCORRECT
DChargeable to withholding tax at 10%
ICANTaxationPersonal Income Tax: Employment Income2025
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Why the answer is C, and why the others tempt you.
Compensation for loss of office falls under the Capital Gains Tax Act rather than PITA, and is chargeable at 10% on the amount exceeding the statutory exempt threshold.
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