Tax on accreted income imposes final additional liability when registered nonprofit status, assets, or organisational form change.

Section 352 imposes final additional income-tax, separate from tax on total income, on a specified person at the maximum marginal rate when prescribed triggering events occur. Accreted income is the aggregate fair market value of total assets on the relevant specified date less total liabilities, subject to reduction for specified assets and related liabilities. Liability may arise on registration cancellation, non-conforming object modification, registration failure, ineligible conversion, impermissible merger or failure to transfer assets on dissolution.

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