CONFIDENTIAL
Q10
What is the tax position for the first payment and
subsequent payment?
A10 Cannot comment definitively until we have put the
agreed scheme to the IR. But compensation schemes generally
do not attract tax.
[Comment: when should we tackle IR?]
Q11 If there is a breakdown post 1997 in the arrangements envisaged under the JD, will HMG introduce arrangements to
allow (former) HMOCS officers to retire with early payment
of pensions?
A11 Do not envisage any breakdown (this will not hold the
line).
-
(Pressed hard) ?? [Can we say nothing? I doubt it. We
shall probably be forced to say, at least "it would be for the Government of the day to take whatever measures it fel
appropriate".]
Q12 In some previous territories (Brunei) officers had the right to full compensation (not half (or less) you are proposing) and yet had good guarantees of future employment.
Why are HMG not offering this?
A12
Brunei an exception and anyway the cap on payments limited the compensation actually available to amounts less
than we are prepared to consider. In most other territories
the expectation was that service by HMOCS officers would be terminated soon after independence [??]
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