How would the insolvency of an Association of Persons, the so called Voluntary Association, be dealt with? Assuming a register of members exists. In the same way as a company or the same way as a partnership with individual members also liable? Or some o
Important:
This answer is based on tax law for the tax year ending 28 February 2020.
Answer:
This is not really a tax related question.
The process starts with the decision of the management of association to liquidate and the liquidated must be done in accordance with its constitution. From a tax point of view, if it had been approved as public benefit organisation, section 30(3)(b)(iii) of the Income Tax Act, requires on dissolution of the entity, that it must transfer its assets to the entities or organisation which have been approved in terms of section 30. So, the process will involve identifying these institutions.