Page 30 - SAIT Compendium 2016 Volume2

Scholarships INCOME TAX ACT: REGULATIONS ANd NOTICES Scholarships
CONDITIONS FOR THE PROVISION OF SCHOLARSHIPS, BURSARIES
AND AWARDS FOR STUDY, RESEARCH AND TEACHING
Promulgated under
GN R302 in GG 24941 of 28 February 2003
1 In these Regulations, unless the context otherwise indicates, any word or expression to which a meaning has been
assigned in the Income Tax Act, 1962, bears the meaning assigned thereto.
2 For purposes of paragraph 4 (o) of Part I of the Ninth Schedule to the Income Tax Act, 1962, an organisation
which provides any scholarships, bursaries and awards for study, research or teaching must comply with the conditions prescribed in these Regulations.
3 Subject to regulation 4, the founding document of the organisation contemplated in regulation 2, must expressly provide that—
(a) all scholarships, bursaries or awards granted by that organisation must be bona de and be granted to an individual
on grounds of objective merit or need;
(b) no scholarship, bursary or award granted by that organisation may—
(i) be revocable, otherwise than for reasons of a material failure to conform to the designated purposes and conditions of that scholarship, bursary or award;
(ii) be subject to conditions which would enable the donor of the funds of that scholarship, bursary or award or any connected person in relation to that donor, to derive some direct bene t from the application of that scholarship, bursary or award; or
(iii) be granted to any person who is or will become an employee of the donor of the funds of that scholarship, bursary or award or that organisation (or any associated institution in relation to that donor or organisation) or any relative of that person, unless circumstances indicate that that scholarship, bursary or award would have been granted to that person or his or her relative, even if that person had not been an employee of that donor, organisation or associated institution;
(c) all decisions regarding the granting of scholarships, bursaries and awards must be made by a duly constituted committee consisting of at least three persons who are not connected persons in relation to the donors or the person to whom the scholarship, bursary or award is granted; and
(d) all scholarships, bursaries and awards granted by that organisation in respect of overseas study, research or teaching will be subject to an undertaking by the person to whom the scholarship, bursary or award is granted—
(i) to apply the knowledge obtained from the study, research or teaching immediately after completion thereof, in the Republic for a period of at least the period that the study, research or training was funded by the organisation; or (ii) to refund the full amount of the scholarship, bursary or award should he or she decide not to apply the knowledge
as contemplated in subparagraph (i).
4 Where the founding document of an organisation which was established before 1 January 2003 does not expressly
provide for the conditions contemplated in regulation 3, the organisation will be deemed to comply with regulation 3 until 31 December 2007, if the person responsible in a duciary capacity for the funds and assets of that organisation submits a written undertaking to the Commissioner that all scholarships, bursaries and awards granted by that organisation comply with the provisions of these Regulations.
5 Copies of all documents and information relating to any scholarship, bursary or award and minutes of all meetings at which any scholarship, bursary or award is granted must be made available to the Commissioner on request.
Schedule B
CODE OF CONDUCT FOR FACILITATOR
The terms of this Code of Conduct will be binding upon every person appointed as a Facilitator (‘the Facilitator’) by the South African Revenue Service (‘SARS’) to facilitate the alternative dispute resolution process (‘ADR’) as contemplated in rule 7 of the rules promulgated under the provisions of section 107A of the Income Tax Act, 1962 (Act 58 of 1962).
1 Professionalism
Every Facilitator is duty bound to build the integrity, fairness and ef cacy of the ADR process and to preserve the independence and impartiality of the Facilitator.
2 Every Facilitator must
2.1 Conduct himself or herself with honesty and integrity and with courtesy to all parties;
2.2 Act in good faith and with impartiality to all parties;
2.3 Either decline on appointment or obtain technical assistance when a case is outside their eld [sic] of competence;
2.4 Duly act within the prescripts of the facilitation process and the law;
2.5 Respect time and attempt to bring the dispute to an expeditious conclusion;
2.6 Resist the exercise of improper in uence from any person outside the facilitation recess; and
2.7 Continuously seek to upgrade his or her pro ciency in the handling of tax disputes, skill and knowledge.
3 Con ict of interest
3.1 A Facilitator must immediately disclose to the parties and to SARS any fact that is likely to either affect his or her impartiality or create the impression that his or her impartiality is effected.
3.2 A Facilitator should decline an appointment if a con ict of interest exists that will give rise to bias.
3.3 If one of the parties requests the Facilitator to recuse him or herself, the Facilitator may do so if it will facilitate
the resolution of the dispute.
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SAIT CompendIum oF TAx LegISLATIon VoLume 2