Page 235 - SAIT Compendium 2016 Volume1

s 30B INCOME TAX ACT 58 OF 1962 s 30C
(a) satis ed that any entity approved in terms of subsection (2) has during any year of assessment in any material respect; or
(b) during any year of assessment satis ed that any such entity has on a continuous or repetitive basis,
failed to comply with this section, or the constitution or written instrument under which it was established to the extent that it relates to this section, the Commissioner must notify the entity that he or she intends to withdraw approval of the entity if corrective steps are not taken by the entity within the period stated in the notice.
(6) If no corrective steps are taken by the entity contemplated in subsection (5), the Commissioner must withdraw approval of that entity with effect from the commencement of the year of assessment contemplated in subsection (5).
(7) If the Commissioner has withdrawn the approval of an entity as contemplated in subsection (6) the entity must within six months after the date of the withdrawal of approval (or such longer period as the Commissioner may allow) transfer, or take reasonable steps to transfer, its remaining assets to any entity, public bene t organisation, institution, board or body or the government of the Republic, contemplated in subsection (2) (b) (x).
(8) If an entity is wound up or liquidated, the entity must, as part of the winding-up or liquidation, transfer its assets remaining after the satisfaction of its liabilities to any entity, public bene t organisation, institution, board or body or the government of the Republic, contemplated in subsection (2) (b) (x).
(9) If an entity fails to transfer, or to take reasonable steps to transfer, its assets as contemplated in subsection (7) or (8), 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 that entity must for the purposes of this Act be deemed to be an amount of taxable income which accrued to that entity during the year of assessment in which the withdrawal of approval in terms of subsection (6) or the winding-up or liquidation contemplated in subsection (8) took place.
(10) Any person who is in a duciary capacity responsible for the management or control of the income and assets of any approved association and who intentionally fails to comply with any provision of this section or of the constitution, or other written instrument under which such association is established to the extent that it relates to the provisions of this section, shall be guilty of an offence and liable on conviction to a ne or to imprisonment for a period not exceeding 24 months.
[Sub-s. (10) added by s. 10 of Act 21 of 2012.] [S. 30B inserted by s. 55 (1) of Act 7 of 2010.]
30C Small business funding entities
(1) The Commissioner must approve a small business funding entity for the purposes of section 10 (1) (cQ) if— (a) that entity is a trust, an association of persons or a
non-pro t company as de ned in section 1 of the Companies Act that has been incorporated, formed or established in the Republic;
[Para. (a) substituted by s. 55 (1) of Taxation Laws
Amendment Act, 2015 – date of commencement deemed to have been 1 March 2015.]
(b) (i) (ii)
(c) (d)
the sole or principal object of that entity is the provision of funding for small, medium and micro-sized enterprises; and
the funding contemplated in subparagraph (i) is—
(aa) provided by that small business funding entity for the bene t of, or is widely accessible to small, medium and micro- sized enterprises;
(bb) provided on a non-pro t basis and with an altruistic or philanthropic intent; and
(cc) not intended to directly or indirectly
promote the economic self-interest of any duciary or employee of that entity, otherwise than by way of reasonable remuneration payable to that duciary or employee;
that small business funding entity has submitted to the Commissioner a copy of the constitution or written instrument under which that small business funding entity has been established;
the constitution or written instrument contemplated in paragraph (c) provides that—
(i) (aa)
(bb)
the small business funding entity must have a committee, a board of management or similar governing body consisting of at least three natural persons who are not connected persons in relation to each other to accept the duciary responsibility of that small business funding entity;
not more than fty per cent of the members of the committee or a board of management contemplated in item (aa) may be employees or directors of any entity providing funding to that small business funding entity or persons who are connected persons in relation to any such employee or director;
(ii) any single person may not directly or indirectly control the decision-making powers relating to that small business funding entity;
(iii) the small business funding entity may not directly or indirectly distribute any of its funds or assets to any person other than in the course of furthering its sole or principal object;
(iv) the small business funding entity may not directly or indirectly distribute any of its funds or assets to any employee in relation to that entity or a person that is a connected person in relation to any such employee or to a person contemplated in subparagraph (i);
(v) the small business funding entity is required to utilise substantially the whole of its funds for its sole or principal object for which it has been established;
(vi) the small business funding entity must during any year of assessment distribute or incur the obligation to distribute at least 25 per cent of all amounts received or accrued in respect of assets held, other than any amount received or accrued in respect of the disposal of any of those assets, during that year of assessment;
(vii) a member of a committee, a board of management or similar governing body of the small business funding entity may not directly or indirectly have any personal or private interest in that small business funding entity;
(viii)substantially the whole of the activities of the small business funding entity must be
Prelex
Wording of para. (a) in force until 1 March 2015
(a) that entity is a trust or an association of persons that
has been incorporated, formed or established in the Republic;
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INCOME TAX ACT – SECTIONS