FAQ - 12 August 2015
12 August 2015
Posted by: Author: SAIT Technical
Author: SAIT Technical
1. Is a school
principal a ‘holder of a public office’ as defined in the Income Tax Act?
client who is a school principal was informed that his income from his school
(not the department) can be structured as a holder of a public office to
qualify for deductions.
I do not think
that this is true. Am I correct?
terms of section 8(1)(e)(iii) (and for the purposes of paragraph (d)) the
holder of a public office includes … a person occupying the office of
president, chairman or chief executive officer of any non-profitmaking
organization which is organized on a national or regional basis to represent
persons with common interests and the funds of which are derived wholly or
mainly from subscriptions of members or donations from the general public.
must then be used to "to enable him (her) to defray expenditure incurred by him
(her) in connection with such office”.
We agree with
you that even if the school is a "non-profitmaking organization which is
organized on a national or regional basis” it doesn’t "represent persons with
common interests and the funds” thereof are not "derived wholly or mainly from
subscriptions of members or donations from the general public.”
meaning of "public office” (Oxford dictionary) is "a position of authority or
service involving responsibility to the public, especially within the government”.
offered by SAIT is limited to guidance and we can’t give an opinion. You
may want to provide your client with an opinion or obtain one from SARS.
2. What are
some of the tax issues involved when somebody is sequestrated?
Q: If a
client’s personal estate was sequestrated during April 2015:
Will he still be liable to complete his
2015 personal tax return on his old tax reference number?
If upon assessment, the 2015 return
results in a liability due, will it be payable by the client, or would it have
been included in the sequestration?
Going forward, will the client be required
to obtain a new tax reference number and submit returns and payments due on the
client will still have to submit a return of income in respect of the year of
assessment ending on the last day of February 2015. The client’s status
as a taxpayer will only change when the sequestration order becomes final and a
new tax registration number will then have to be obtained. A return of income,
from 1 March 2015 until that date, will have to be submitted as well – will
probably be done by the trustee. The tax due in respect of both these
assessments are claims against the insolvent estate and will handled by the
3. Do all
non-profit organisations have to get an income tax number?
you please advise if all non-profit organisations have to get a tax number?
accept that the "non-profit organisation” is not part of a group of
organisations sharing a common purpose and carrying on a public benefit
activity under the direction and supervision of a co-ordinating body, i.e. it
doesn’t want to apply for group registration.
accepted that the request relates to normal tax – not value-added tax.
whether or not the "non-profit organisation” wants to apply to be approved as a
public benefit organisation it will have to register with SARS if it is a:
or other juristic person, which is a resident;
or other juristic person, which is not a resident-
which carried on a trade through a
permanent establishment in the Republic;
which derived income from a source in the
which derived any capital gain from a
source in the Republic;Disclaimer: Nothing in these queries and answers 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 answers, SAIT do not accept any responsibility for consequences of decisions taken based on these queries and answers. It remains your own responsibility to consult the relevant primary resources when taking a decision.