Page 231 - SAIT Compendium 2016 Volume1

s 30
INCOME TAX ACT 58 OF 1962 s 30
(b)
activities and resources of such organisation are directed in the furtherance of its object;
has submitted to the Commissioner a copy of the constitution, will or other written instrument under which it has been established and in terms of which it is—
(i) required to have at least three persons, who are not connected persons in relation to each other, to accept the duciary responsibility of such organisation and no single person directly or indirectly controls the decision making powers relating to that organisation: Provided that the provisions of this subparagraph shall not apply in respect of any trust established in terms of a will of any person;
reasons other than a material failure to conform to the designated purposes and conditions of such donation, including any misrepresentation with regard to the tax deductibility thereof in terms of section 18A: Provided that a donor (other than a donor which is an approved public bene t organisation or an institution, board or body which is exempt from tax in terms of section 10 (1) (cA) (i), which has as its sole or principal object the carrying on of any public bene t activity) may not impose conditions which could enable such donor or any connected person in relation to such donor to derive some direct or indirect bene t from the application of such donation;
[Sub-para. (v) amended by s. 22 (g) of Act 30 of 2002.] (vi) required to submit to the Commissioner a copy of any amendment to the constitution, will or other
written instrument under which it was established; (c) the Commissioner is satis ed is or was not knowingly a party to, or does not knowingly permit, or has not knowingly permitted, itself to be used as part of any transaction, operation or scheme of which the sole or main purpose is or was the reduction, postponement or avoidance of liability for any tax, duty or levy which, but for such transaction, operation or scheme, would have been or would have become payable by any person under this Act or any other Act administered
by the Commissioner;
(d) has not and will not pay any remuneration, as de ned
in the Fourth Schedule, to any employee, of ce bearer, member or other person which is excessive, having regard to what is generally considered reasonable in the sector and in relation to the service rendered and has not and will not economically bene t any person in a manner which is not consistent with its objects;
[Para. (d) substituted by s. 22 (h) of Act 30 of 2002.]
(e) complies with such reporting requirements as may be
[Sub-para. (i) substituted by s. 22 (d) of Act 30 of 2002 and amended by s. 53 (1) (b) of Act 7 of 2010.]
(ii) prohibited from directly or indirectly distributing any of its funds to any person (otherwise than in the course of undertaking any public bene t activity) and is required to utilise its funds solely for the object for which it has been established;
[Sub-para. (ii) amended by s. 22 (e) of Act 30 of 2002, by s. 28 (1) of Act 32 of 2004, by s. 24 (1) (d) of Act 20 of 2006 and by s. 25 (1) (b) of Act 8 of 2007.]
(iii) in the case of a public bene t organisation contemplated in paragraph (a) (i) of the de nition of ‘public bene t organisation’ in subsection (1), required on dissolution to transfer its assets to— (aa) any public bene t organisation which has
been approved in terms of this section;
[Item (aa) substituted by s. 22 (b) of Act 3 of 2008.] (bb)any institution, board or body which is exempt from tax under the provisions of section 10 (1) (cA) (i), which has as its sole or principal object the carrying on of any
public bene t activity; or
(cc) the government of the Republic in the
national, provincial or local sphere,
contemplated in section 10 (1) (a),
[Item (cc) substituted by s. 43 (a) of Act 35 of 2007 and by
s. 53 (1) (c) of Act 7 of 2010.]
which is required to use those assets solely for
purposes of carrying on one or more public
bene t activities;
[Sub-para. (iii) substituted by s. 22 (f) of Act 30 of 2002 and amended by s. 24 (1) (e) of Act 20 of 2006, by s. 25 (1) (c) of Act 8 of 2007 and by s. 43 (a) of Act 35 of 2007.]
(iiiA) in the case of a branch of a public bene t organisation contemplated in paragraph (a) (ii) of the de nition of ‘public bene t organisation’ in subsection (1), is required on termination of its activities in the Republic to transfer the assets of such branch to any public bene t organisation, institution, board, body, department or administration contemplated in subparagraph (iii), if more than 15 per cent of the receipts and accruals attributable to that branch during the period of three years preceding that termination are derived from a source within the Republic;
[Sub-para. (iiiA) inserted by s. 24 (1) (f) of Act 20 of 2006, amended by s. 25 (1) (d) of Act 8 of 2007 and substituted by s. 43 (b) of Act 35 of 2007.]
(iv) . . .
[Sub-para. (iv) amended by s. 16 (1) of Act 19 of 2001 and deleted by s. 36 (1) (a) of Act 31 of 2005.]
(v) prohibited from accepting any donation which is revocable at the instance of the donor for
(f)
determined by the Commissioner;
the Commissioner is satis ed that, in the case of any public bene t organisation which provides funds to any association of persons contemplated in paragraph 10 (iii) of Part 1 of the Ninth Schedule, has taken reasonable steps to ensure that the funds are utilised for the purpose for which it has been provided; and
[Para. (f) substituted by s. 31 (1) (a) of Act 74 of 2002.]
(g) . . .
[Para. (g) added by s. 22 (i) of Act 30 of 2002 and deleted
by s. 24 (1) (g) of Act 20 of 2006.]
(h) has not and will not use its resources directly or indirectly to support, advance or oppose any political
party.
[Para. (h) added by s. 22 (j) of Act 30 of 2002.] [Sub-s. (3) amended by s. 22 (b) and (k) of Act 30 of 2002
and by s. 36 (1) (b) and (c) of Act 31 of 2005.]
(3A) The Commissioner may, for the purposes of subsection (3), grant approval in respect of any group of organisations sharing a common purpose, which carry on any public bene t activity under the direction or supervision of a regulating or co-ordinating body, where that body takes such steps, as prescribed by the Commissioner, to exercise control over those organisations in order to ensure that they
comply with the provisions of this section.
[Sub-s. (3A) inserted by s. 22 (l) of Act 30 of 2002.] (3B) Where an organisation applies for approval, the Commissioner may approve that organisation for the purposes of this section with retrospective effect, to the extent that the Commissioner is satis ed that that organisation during the period prior to its application
SAIT CompendIum oF TAx LegISLATIon VoLume 1 223
INCOME TAX ACT – SECTIONS