Page 101 - SAIT Compendium 2016 Volume1

s 10 INCOME TAX ACT 58 OF 1962
s 10
(C) does not result in unfair competition in relation to taxable entities;
if the undertaking or activity is of an occasional nature and undertaken substantially with assistance on a voluntary basis without compensation;
if the undertaking or activity is approved by the Minister by notice in the Gazette, having regard to—
(A) the scope and benevolent nature of the
undertaking or activity;
(B) the direct connection and inter-
relationship of the undertaking or activity with the sole or principal object of the public bene t organisation;
(cE)the receipts and accruals of any political party registered in terms of section 15 of the Electoral Commission Act, 1996 (Act 51 of 1996);
[Para. (cE) inserted by s. 8 (1) (c) of Act 96 of 1981 and substituted by s. 18 (1) (c) of Act 7 of 2010.]
(cF) . . .
[Para. (cF) inserted by s. 9 (1) (b) of Act 85 of 1987,
amended by s. 10 (1) (f), (g) and (h) of Act 141 of 1992 and deleted by s. 21 (1) (a) of Act 30 of 2000.]
(cG)the receipts and accruals of any person who is not a resident, which are derived by such person from carrying on business as the owner or charterer of any ship or aircraft, if a similar exemption or equivalent relief is granted by the country of which such person is a resident, to any resident in respect of any tax imposed in that country on income which may be derived by such person from carrying on in such country any business as owner or charterer of any ship or aircraft;
[Para. (cG) inserted by s. 9 (1) (c) of Act 85 of 1987 and substituted by s. 10 (1) (i) of Act 141 of 1992 and by s. 13 (1) (b) of Act 59 of 2000.]
(cH). . .
[Para. (cH) inserted by s. 12 (1) (a) of Act 129 of 1991,
amended by s. 10 (1) (j) of Act 141 of 1992 and by s. 10 of Act 28 of 1997, substituted by s. 26 (1) (b) of Act 45 of 2003 and deleted by s. 10 (1) (f) of Act 20 of 2006.]
(cI) . . .
[Para. (cI) inserted by s. 10 (1) (k) of Act 141 of 1992,
amended by s. 7 (1) (c) of act 113 of 1993, by s. 9 (1) (a) of Act21of1994,bys.8(1)(b)ofAct36of1996,bys.10(1) (a) of Act 28 of 1997 and by s. 18 (1) (a) of Act 53 of 1999 and deleted by s. 21 (1) (a) of Act 30 of 2000.]
(cJ) . . .
[Para. (cJ) inserted by s. 10 (1) (k) of Act 141 of 1992,
amended by s. 7 (1) (d) and (e) of Act 113 of 1993 and by s. 18 (1) (b) of Act 53 of 1999 and deleted by s. 21 (1) (a) of Act 30 of 2000.]
(cK). . .
[Para. (cK) inserted by s. 7 (1) (g) of Act 113 of 1993,
amended by s. 8 (1) of Act 36 of 1996 and deleted by s. 21 (1) (b) of Act 30 of 2000.]
(cL) . . .
[Para. (cL) inserted by s. 7 (1) (g) of Act 113 of 1993 and
deleted by s. 8 (1) (e) of Act 36 of 1996.]
(cM) . . .
[Para. (cM) inserted by s. 9 (1) (e) of Act 21 of 1994,
amended by s. 18 (1) (c) of Act 53 of 1999 and by s. 10 (1) (g) and (h) of Act 20 of 2006 and deleted by s. 9 (a) of Act 3 of 2008.]
(cN)the receipts and accruals of any public bene t organisation approved by the Commissioner in terms of section 30 (3), to the extent that the receipts and accruals are derived—
(i) otherwise than from any business undertaking or trading activity; or
(ii)from any business undertaking or trading activity—
(aa) if the undertaking or activity—
(A) is integral and directly related to the
sole or principal object of that public bene t organisation as contemplated in paragraph (b) of the de nition of ‘public bene t organisation’ in section 30;
[Subitem (A) substituted by s. 10 (1) (c) of Act 8 of 2007.] (B) is carried out or conducted on a basis substantially the whole of which is directed towards the recovery of cost;
(bb) (cc)
and
SAIT CompendIum oF TAx LegISLATIon VoLume 1 93
[Subitem (B) substituted by s. 10 (1) (d) of Act 8 of 2007.] (C) the pro tability of the undertaking or
activity; and
(D) thelevelofeconomicdistortionthatmay
be caused by the tax exempt status of the public bene t organisation carrying out the undertaking or activity; or
(dd)other than an undertaking or activity in respect of which item (aa), (bb) or (cc) applies and do not exceed the greater of—
(i) 5 per cent of the total receipts and accruals of that public bene t organisation during the relevant year of assessment; or
(ii) R200 000;
[Subitem (ii) substituted by s. 2 (2) (b) of Act 8 of 2007, by s. 1 (2) (c) of Act 3 of 2008, by s. 16 (1) (a) of Act
60 of 2008 and by s. 28 (1) (b) of 24 of 2011 – date of commencement deemed to have been 1 March 2011. This amended wording applies in respect of amounts received or accrued during years of assessment commencing on or after that date.]
[Para. (cN) inserted by s. 21 (1) (c) of Act 30 of 2000 and substituted by s. 16 (1) (b) of Act 31 of 2005.]
(cO)the receipts and accruals of any recreational club approved by the Commissioner in terms of section 30A, to the extent that the receipts and accruals are derived—
(i) in the form of membership fees or subscriptions paid by its members;
(ii) from any business undertaking or trading activity that—
(aa) is integral and directly related to the provision of social and recreational amenities or facilities for the members of that club;
(bb) is carried out on a basis substantially the whole of which is directed towards the recovery of cost; and
(cc) does not result in unfair competition in relation to taxable entities;
(iii) from any fundraising activities of that club, which are of an occasional nature and undertaken substantially with assistance on a voluntary basis without compensation; and
(iv) from any other source and do not in total exceed the greater of—
(aa) ve per cent of the total membership fees and subscriptions due and payable by its members during the relevant year of assessment; or
(bb) R120 000;
[Item (bb) substituted by s. 1 (2) (c) of Act 3 of 2008, by
s. 16 (1) (b) of Act 60 of 2008 and by s. 28 (1) (c) of 24 of 2011 – date of commencement deemed to have been 1 March 2011. This amended wording applies in respect of
INCOME TAX ACT – SECTIONS