Sports clubs must fight rates rip-off: here's how: iLIVE

I suggest that sports clubs and the Club Management Association mentioned in "Sports clubs face ruin as city set to up rates" (April 18) should work together to overturn this so-called policy.

First, if any of the organisations are holders of a non-profit organisations certificate, a case can be made that the municipality is obliged, not just invited, by the provisions of section 3 of the Non-Profit Organisations Act to "determine and coordinate the implementation of its policies and measures in a manner designed to promote, support and enhance the capacity of non-profit organisations to perform their functions".

Any imposition of rates immediately negates that required assistance and policy support.

Clubs and the association are referred to section 7.5 of the "Tax-Exemption Guide for Public-Benefit Organisations in South Africa", available online, where provision has been made for tax exemptions for social and recreational clubs, and amateur sporting bodies.

These exemptions are provided through the policy of the Ministry of Finance, as administered by the commissioner of taxes, to enable these bodies run by volunteers for the benefit of any member of the public who wishes to join. It is the ministry's aim to assist these bodies, not destroy them, through tax exemptions. What is the purpose of the ministry granting tax exemption, in effect a cash donation, then permitting a municipality to diminish or wipe out those funds by imposing rates?

The clubs are already paying tariff rates for water, electricity and rubbish removal. Most of their members are payers of rates where they live.

Their activities in no way constitute the running of a business. The SA Revenue Service sees to that.