TAXING PENSIONS UNDER THE THREE TIER PENSIONS SCHEME IS UNLAWFUL
INTRODUCTION No two pensions schemes are the same across the world since a pensions structure must take into consideration the uniqueness of a country’s economy and dynamics of the labour force. Where countries mimic same dynamics, the pension schemes may mimic each other but will still have certain uniqueness. Consideration the dynamics of the Ghanaian labour force and its history, the introduction of the three tier pensions scheme by National Pensions Act, 2008 (Act 766) is one of the best in the world with respect to tax incentives and the envy of most jurisdictions. Any attempt to want to tax pensions either by way of the contributions, the investment returns or the benefit pay outs under Act 766 no matter the circumstance is unconstitutional and unlawful. MODELS OF TAXING PENSIONS There are basically eight possible models of taxing pensions no matter the jurisdiction with respect to whether or not the contributions, investments income/returns and the benefit pay-out a...