Q: Is it possible
for a natural person to register as a public benefit organisation (PBO) in his
A: A single individual would not be able to register as a
public benefit organisation with SARS.
There are many reasons for that, but we submit that the definition of
public benefit organisation in section 30 of the Income Tax Act provides the
main reason. It states in paragraph (a)
that a ‘public benefit organisation’ means any organisation—
(a) which is—
(i) a non-profit company as defined in section 1 of the
Companies Act or a trust or an association of persons that has been
incorporated, formed or established in the Republic…
It therefore allows for an association of persons (who may
all be individuals) to be a public benefit organisation. It is submitted that a single person could
not be a public benefit organisation for tax purposes.
Disclaimer: Nothing in this query and answer should be construed as
constituting tax advice or a tax opinion. An expert should be consulted for
advice based on the facts and circumstances of each transaction/case. Even
though great care has been taken to ensure the accuracy of the answer, SAIT do
not accept any responsibility for consequences of decisions taken based on this
query and answer. It remains your own responsibility to consult the relevant
primary resources when taking a decision.
Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.
MINIMUM REQUIREMENTS TO REGISTER
The Act requires that a minimum academic and practical requirments be set to register with a controlling body. Click here for the minimum requirements of SAIT.