Page 232 - SAIT Compendium 2016 Volume1

s 30 INCOME TAX ACT 58 OF 1962 s 30
complied with the requirements of a ‘public bene t organisation’ as de ned in subsection (1).
[Sub-s. (3B) inserted by s. 22 (l) of Act 30 of 2002 and substituted by s. 28 (1) (b) of Act 32 of 2004 and by s. 41 (1) (b) of Act 17 of 2009.]
(3C) Notwithstanding any other provision of this section, the Director of Nonpro t Organisations designated in terms of section 8 of the Nonpro t Organisations Act, 1997 (Act 71 of 1997), may, in respect of any organisation that has been convicted of an offence under that Act, request the Commissioner to withdraw the approval of that organisation in terms of subsection (5) and the Commissioner may pursuant to that request withdraw such approval.
[Sub-s. (3C) inserted by s. 24 (1) (h) of Act 20 of 2006.]
(4) Where the constitution, will or other written instrument does not comply with the provisions of subsection (3) (b), it shall be deemed to so comply if the persons contemplated in subsection (3) (b) (i) responsible in a duciary capacity for the funds and assets of a branch contemplated in paragraph (a) (ii) of the de nition of ‘public bene t organisation’ in subsection (1) or any trust established in terms of a will of any person furnishes the Commissioner with a written undertaking that such organisation will be administered in compliance with the provisions of this section.
[Sub-s. (4) amended by s. 24 (1) (i) and (j) of Act 20 of 2006 and substituted by s. 48 of Act 43 of 2014 – date of commencement: 20 January 2015.]
(5) Where the Commissioner is—
(a) satis ed that any public bene t organisation
approved under subsection (3) has during any year of
assessment in any material respect; or
(b) during any year of assessment satis ed that any such
public bene t organisation has on a continuous or
repetitive basis,
failed to comply with the provisions of this section, or the constitution, will or other written instrument under which it is established to the extent that it relates to the provisions of this section, the Commissioner shall after due notice withdraw approval of the organisation with effect from the commencement of that year of assessment, where corrective steps are not taken by that organisation within a period stated by the Commissioner in that notice.
[Sub-s. (5) amended by s. 22 (m) of Act 30 of 2002.] (5A) Where any regulating or co-ordinating body
contemplated in subsection (3A)—
(a) with intent or negligently fails to take any steps
contemplated in that subsection to exercise control
over any public bene t organisation; or
(b) fails to notify the Commissioner where it becomes aware of any material failure by any public bene t organisation over which it exercises control to comply
with any provision of this section,
[Para. (b) substituted by s. 54 of Taxation Laws Amendment Act, 2015 (‘become’ replaced by ‘becomes’) – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
the Commissioner shall after due notice withdraw the approval of the group of public bene t organisations with effect from the commencement of that year of assessment, where corrective steps are not taken by that regulating or co-ordinating body within a period stated by the Commissioner in that notice.
[Sub-s. (5A) inserted by s. 22 (n) of Act 30 of 2002 and amended by s. 36 (1) (d) of Act 31 of 2005.]
(6) Where the Commissioner has so withdrawn his approval of such organisation, such organisation
shall, within six months or such longer period as the Commissioner may allow after the date of such withdrawal, transfer, or take reasonable steps to transfer, its remaining assets to any public bene t organisation, institution, board or body or the government as contemplated in subsection (3) (b) (iii).
[Sub-s. (6) amended by s. 24 (1) (k) of Act 20 of 2006 and substituted by s. 53 (1) (d) of Act 7 of 2010.]
(6A) As part of—
(a) the dissolution of an organisation contemplated in
paragraph (a) (i) of the de nition of ‘public bene t
organisation’ in subsection (1); or
(b) the termination of the activities of a branch
contemplated in paragraph (a) (ii) of that de nition, 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,
the organisation or branch must transfer its assets to any public bene t organisation, institution, board or body or the government contemplated in subsection (3) (b) (iii).
[Sub-s. (6A) inserted by s. 53 (1) (e) of Act 7 of 2010.] (7) If the organisation fails to transfer, or to take reasonable steps to transfer, its assets, as contemplated in subsection (6) or (6A), an amount equal to the market value of those assets which have not been transferred, less an amount equal to the bona de liabilities of the organisation, must for purposes of this Act be deemed to be an amount of taxable income which accrued to such organisation during the year of assessment in which approval was withdrawn or the dissolution of the
organisation or termination of activities took place.
[Sub-s. (7) substituted by s. 24 (1) (l) of Act 20 of 2006, by s. 25 (1) (e) of Act 8 of 2007 and by s. 53 (1) (f) of Act 7 of 2010.]
(8) The provisions of this section shall not, if the Commissioner is satis ed that the non-compliance giving rise to the withdrawal contemplated in subsection (5) has been recti ed, preclude any such organisation from applying for approval in terms of this section in the year of assessment following the year of assessment during which the approval was so withdrawn by the Commissioner.
(9) . . .
[Sub-s. (9) deleted by s. 4 of ACT 44 of 2014 – date of commencement: 20 January 2015.]
(10) In the application of the provisions of this Act, the Commissioner may by notice in writing require any person whom the Commissioner may deem able to furnish information in regard to any approved public bene t organisation—
(a) to answer any questions relating to such organisation;
or
(b) to make available for inspection by the Commissioner
or any person appointed by him, any books of account, records or other documents relating to such organisation; or
(c) to attend at the time and place appointed by the Commissioner for the purposes of producing for examination by the Commissioner or any person appointed by him, any books of account, records or other documents relating to such organisation.
(11) Any person who is in a duciary capacity responsible for the management or control of the income and assets of any approved public bene t organisation and who intentionally fails to comply with any provision of this section or of the constitution, will or other written instrument under which such organisation is established to the extent that it relates to the provisions of this section,
224 SAIT CompendIum oF TAx LegISLATIon VoLume 1