A trustee of a body corporate has been requested to register the body corporate for income tax. After enquiring with SARS, SARS requested that the trustee follow the CIPC route of registering the body corporate. Please advise as to whether this is the correct process?
Important:
This answer is based on tax law year ending 28 February 2021.
Answer:
We don’t agree with SARS about CIPC. Whilst the share block company must register with CIPC, the body corporate doesn’t have to register as a company. A body corporate is not required to apply for exemption under section 10(1)(e)(i)(aa). These entities are required to register at a branch office, not at the tax exempt unit, and submit annual income tax returns IT14’s.