CHAPTER 286

An Act to amend the Code of Virginia by adding a section numbered
58-120.1, to provide for the exemption from income taxation of certatn
employee trusts.
fH 723]

Approved April 2, 1968

Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia be amended by adding a section numbered
58-120.1, as follows: ;

§ 58-120.1. Pension, profit-sharing, stock bonus and annuity trusts,
or combinations thereof, established by employers for the purpose of dis-
tributing both the principal and income thereof exclusively to eligible
employees, or the beneficiaries of such employees, and so constituted that
no part of the principal or income may be used for, or diverted to, any
purpose other than for the exclusive benefit of the employees or their
beneficiaries, shall be exempt from income taxation; provided that there
is no discrimination as to eligibility, contributions or benefits in favor of
officers, shareholders, or supervisory or highly-paid employees. The exemp-
tion of any such trust under the provisions of the Internal Revenue Code
of the United States of 1954 shall be prima facie evidence of exemption of
such trust under this section.