2016 Arizona Revised Statutes
Title 43 - Taxation of Income
§ 43-1214 Definition of "unreasonable accumulation of income"
43-1214. Definition of " unreasonable accumulation of income"
For purposes of section 43-1211, " unreasonable accumulation of income" shall be said to exist if the amounts accumulated out of income during the taxable year or any prior taxable year and not actually paid out by the end of the taxable year either:
1. Are unreasonable in amount or duration in order to carry out the charitable, educational or other purposes or function constituting the basis for such organization's exemption under section 43-1201, paragraph 4.
2. Are used to a substantial degree for purposes or functions other than those constituting the basis for such organization's exemption under section 43-1201, paragraph 4.
3. Are invested in such a manner as to jeopardize the carrying out of the charitable, educational or other purpose or function constituting the basis for such organization's exemption under section 43-1201, paragraph 4.
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