Is it time for charity-owned businesses to start paying tax?
As profits earned by charity-owned businesses continue to skyrocket, critics say a centuries-old law that allows those companies to dodge income tax now needs to go.
As Checkpoint‘s Nita Blake-Persen reports, you might be surprised how many products in your pantry are made by companies which don’t have to pay tax.
Charity tax was an issue raised in the Tax Working Group’s interim report, and with the group’s final report due tomorrow, the government’s being urged to make bold changes to bring church companies in line with the rest of the country.
Last year the total income of faith-based charities was more than $970 million.
Among the companies cashing in are Sanitarium, known for its products such as Weetbix and Marmite, which is owned by the Seventh Day Adventist church
The tax-free status applies to all registered charities, including charitable trusts, iwi groups and not-for-profits.
It is difficult to quantify how much money would be made from taxing those organisations. Cash can come from op-shops and sausage sizzles, to hospitals and schools, but here are some numbers to consider:
Businesses operated by the Seventh Day Adventists made more than $10 million in profit according to its last annual return, Trinity Lands, which is run by the Bretheren church, made nearly $19 million.
And the Society of Mary New Zealand Trust, which owns Mission Estate wines, made more than $2 million in profit.
All registered charities have to prove any profits are going towards their charitable purpose – those include providing education or housing, or advancing religion.
But the chairperson of the Interchurch Bureau, a group representing the business interests of around 30 New Zealand churches, Chris Bethwaite, said the tax-exemption was vital for the work churches did in communities across the country.
“Currently the government can’t do enough or can’t provide the services that are required to help communities and people in New Zealand. Churches across New Zealand do a lot of that work for the government – some having contracts.
“So yeah, you go and tax churches and it will have an impact on what the churches are able to do,” he said.
But expert Michael Gousmett said proving that the money was being used for charitable purposes for increasingly tricky.
“A situation has developed in New Zealand where basically any organisation can decide that it wants to be a charity and run a business and pay no income tax,” he said.
The government’s tax working group has been looking at charities as part of its wide-ranging review into New Zealand’s tax set-up.
It received more than 300 submissions about charities – many wanted the bodies stripped of tax-free status. Some said religious groups should not be considered charities, because they didn’t deem ‘furthering religion’ to be a charitable activity.
read more through this link below https://www.radionz.co.nz/national/programmes/checkpoint/audio/2018683392/is-it-time-for-charity-owned-businesses-to-start-paying-tax
Discussion is beginning to heat up, again, in question with the charity status rip offs
About time. Also about time that human ask themselves ,why they would want to allow cults to have the right, to be able to “screw people’s heads up”, by the cults act of splitting up their family
Then still get rewarded with charity status ?
What’s charitable about ripping family relationships apart?
Excommunicating certain people from their cult. So that some family members will then end up in situation where they’ll be forced to need to lose contact with their family, or perhaps even worse lose contact with their own spouse and/or their own children
That kind of psychologic warfare , doesn’t come without cost of repercussion? . Lets face it, these cults are trying to use excommunication as a form of warfare against people. As a tool, to manipulate people
Their will be psychological repercussion?
Sure there will be. There is loads of documented evidence too, helping to record the detrimental effect of psychological problems caused to people, due to cult practice of using “acts of excommunication”, like a psychological tool of warfare. And so on
So much so. In more recent years there is even been a new special particular name invented, so as to help describe some of the particular kind of trauma being caused. Dr Marlene Winell has called it RELIGIOUS TRAUMA SYNDROME . See info here https://www.babcp.com/review/RTS-Its-Time-to-Recognize-it.aspx
This is on top of the trauma that naturally also always occur whenever/where ever families lives are being torn and ripped apart.The cost of the family dysfunction what it then begin to help develop
This is a cost CAUSED to citizen in general
Yeah. Through their tax . Through their tax what will need to paid more of, so as to then be used to help fund the cost of the mental health system
Its been costing the citizen already big time
Yeah. It has.
It is citizen that will pay more tax. So as to help fund the government to pay cost of mental health fees.
While cults, meanwhile, are STILL being rewarded with charity status ?
How much tax do cults pay. Specially if they can state that they don’t ever earn money of their own, themselves personally, as such . Perhaps they’ll claim that no money is even their own money, but instead is money being produced by the cult? (cult organization of which retains charity status. Any tax paid by charity?)
The cults must think that its been like having Christmas all year round. Must be laughing their way back and forth to their bank accounts. The cults are rewarded, for their act of creating more family dysfunction, with all the usual ongoing psychological problem (caused) by that, of what the general citizen will then need to help front up more and more tax money for. So as to try and help governments, be able to afford to pay costs of HIGHER mental health bills
Meanwhile the cults who have already been slyly creaming it. Will still manage to proceed to carry on and fool most Joe-Citizen, who’ll remain oblivious to what’s been happening right under their noses.
They find a way to continue to fool many people. By cults act of getting involved in displaying some “token act” of charity action. Perhaps they’ll like get involved in throwing the odd sausage sizzle here and there, now and then . Or concert
Most cults may maintain some token level involvement in charity acts. Not only these two groups like ive linked to, above either
Others will also do similar
Just to help make Joe-Citizen , feel convinced, that they may actually have been getting a real decent honest deal ?
Meanwhile citizen Joe still remains none the wiser
Citizen Joe’s interest has been diverted, successfully won-over. Citizen Joes emotionally fallen in love with the organized “shop dressing” display of like what’s been put on purposely by the cults actress and actresses