Section 40(o) exempts from Guernsey income tax “the income derived from investments or deposits of any superannuation fund which is established in Guernsey”.
Section 40(p) exempts from Guernsey income tax “any superannuation benefit which is paid out of a superannuation fund to which paragraph (o) of this section applies and which is paid to a person who is not resident in Guernsey”.
The requirements of section 40(o) that must be met for a pension scheme to qualify for the above exemptions from Guernsey income tax are that it:
• must be bona fide established under irrevocable trusts;
• must be established in connection with the carrying on of business or the exercise of functions wholly or mainly outside Guernsey;
• has for its sole purpose the provision of superannuation benefits for:
- persons employed in the business or in connection with the exercise of functions wholly outside Guernsey,
and
- for the widows, children or dependants of persons who are or have been so employed, on the death of those persons; and
• is ‘recognised’ by the employer and by the persons employed in the business or in connection with the exercise of functions.