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(1) The Commissioner-General may approve an entity as a charitable organisation for the purposes of this Act.

(2) The Commissioner-General shall, before approving an entity under subsection (1), ensure that

(a) the entity is established to operate as

(i) charitable institution which is of a public nature;

(ii) a religious institution which is of a public nature; or

(iii) a body of persons formed for the purpose of promoting social activities or sporting activities; and

(iv) a registered sporting club; [Deleted by the Income Tax (Amendment) (No.2) Act, 2016 (Act 924)]

(b) the entity has a written constitution that prohibits that entity from

(i) engaging in a party political activity, supporting a political party or using its platform to engage in party politics;

(ii) any function other than those specified in paragraph (a); and

(iii) conferring a private benefit, other than in pursuit of a function of the entity specified in paragraph (a).

(3) The Commissioner-General may for good cause or for the contravention of a requirement specified in subsection (2), revoke an approval granted under subsection (1).

(4) The income accruing to or derived by a charitable organisation is exempt from tax.

(5) Subsection (4) does not apply to the business income of the charitable organisation.

(6) The Minister may, by legislative instrument, make Regulations for the effective implementation of this section.