ABSTRACT
This chapter explains the legislative framework relevant to religious institutions, with a particular emphasis on financial requirements. Many of the complaints outlined in the Cultural, Religious and Linguistic (CRL) Rights Commission’s Report on the commercialisation of religion related to financial abuses, misappropriation of funds and non-compliance with legislation, particularly of a financial and governance-related nature. According to a tax exemption guide for public benefit organisations in South Africa, ‘tax benefits are designed to assist non-profit organisations by augmenting their financial resources and providing them with an enabling environment in which to achieve their objectives’. In South Africa, religious, charitable and educational institutions of a public character used to be fully exempt from income tax4 and other taxes. In relation to financial abuses, the CRL Rights Commission can assist religious communities by educating and informing them of their legal and constitutional rights and creating awareness of existing laws and regulations that apply in the case of financial reporting and tax compliance.
