By Clint Riddin
“Levy” or “levy income” is the amount received or accrued from the members for the purposes of funding expenditure relating to their collective interests.
No distinction is made as to the type of levy, just that the levy is applied to the collective interest of members. So, it can be argued that any exit levy that is used to build a fund, that is applied in the collective interests of the members of a community scheme, would fall into this definition. Therefore, in terms of the exemption afforded by Interpretation Note 64, these levies are exempt from income tax.
Article reference: Paddocks Press: Volume 7, Issue 9, Page 2