External
- Where the redemption is assessable, advise the employee that the compensation awarded is subject to taxation and that tax will be deducted by the paying authority. Advise the employee of the actual or estimated amount of deductions and send them the 'Information Sheet – Redemption of Compensation' which is included in the letters attached to this OA.
- Recommend that they seek taxation advice before they spend all the money as they may need to set aside some to pay any shortfall of tax.
- A suggested letter to employees redeemed under section 30 is at Attachment A. A suggested letter to employees redeemed under section 137 is at Attachment B. The relevant 'Information Sheets' follow each letter.