Pension funds: Surplus & Corporation Tax


D

David J Rainey

A discussion in another newgroup ended up in a dead end about why
companies are not allowed to make extra contributions to their pension
schemes once it becomes 104% funded.

Why is this?

One line of argument was that this would allow firms to hide profits in
a tax shelter. I follow the logic, but not how any shareholders would
benefit.

What say the finance expert here?

rgds

David
 
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