Non Profit Organisation registered as NPC has been taxed on Gross Rental Income Less R 200 000 as the income exceeds 5% of Gross Income and R 200000 without allowing any deductions for expenses. i.e Water and electricity.
Important:
This answer is based on tax law for the tax year ending 28 February 2020.
Answer:
We accept that the entity was approved by SARS as a public benefit organisation (section 30), or other exempt body (section 30C). We agree that the deduction should have been allowed if it meets the requirements for deduction, but because of the section 10(1)(cO), an apportionment will have had to be made - see section 23(f) of the Income Tax Act.