Receipts & accruals of political parties
Section 10(1)(cE) of the Income Tax provides that the
receipts and accruals of any political party registered in terms of the provisions
of the Electoral Commission Act ,1996 is exempt from Normal Tax.
This in my view exempts all the receipts and accruals of a
political party appropriately registered under the Electoral Act.
Should the Legislature have intended otherwise ,it would
have had to make an appropriate provision in the Income Tax Act.
For instance receipts and accruals of PBO’s are exempt from
normal tax under 10(1)(cN) subject to certain restrictions/requirements . Without
these restrictions/requirements all receipts & accruals of PBO’s would, I
submit also be exempt from Normal Tax.
Appropriately registered political parties are on the other
hand not subject to any restrictions etc.re its receipts & accruals.