(1) An unregistered friendly society whose income does not exceed €205 shall be entitled to exemption from income tax, and a registered friendly society which is precluded by statute or by its rules from assuring to any person a sum exceeding €1,270 by means of gross sum, or €70 a year by means of annuity, shall be entitled to exemption from income tax under Schedules C, D and F.
(2) A registered friendly society shall not be entitled to exemption from tax under this section in relation to any year of assessment if the Revenue Commissioners determine, for the purposes of entitlement to exemption for that year, that the society does not satisfy the following conditions -
(a) that it was established solely for any or all of the purposes set out in section 8(1) of the Friendly Societies Act, 1896, and not for the purpose of securing a tax advantage, and
(b) that since its establishment it has engaged solely in activities directed to achieving the purposes for which it was so establi
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