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Urban Edge "Church"
- Thread starter dualmeister
- Start date
- Joined
- Oct 15, 2005
- Messages
- 14,584
Haha saw this.
The taxman goes to church
The South African Revenue Service (SARS) will investigate religious institutions for possible tax non-compliance.
In July last year‚ the Commission for the Promotion and Protection of the Rights of Cultural‚ Religious and Linguistic Communities released its final report on the commercialisation of religion and abuse of people’s belief systems.
Among its recommendations was that SARS should conduct an in-depth investigation into tax evasion by religious practitioners and that this should be done in partnership with the commission.
SARS said on Friday that the decision followed its own preliminary investigation and its meeting with the commission.
It said there were also reports suggesting that certain religious organisations and leaders were not in compliance with tax laws‚ and might be enriching themselves under the guise of altruism and philanthropy.
But a number of religious organisations are complying with their tax obligations‚ the revenue service said.
It said religious institutions may apply to SARS to be exempted from the payment of Income tax and certain other taxes. But there are a number of specific criteria that have to be complied with.
Churches should conduct activities in a nonprofit manner and no activity should promote the economic self-interest of any person.
Another criterion is that religious institutions are prohibited from distributing funds to any person other than in performing their religious activity.
SARS said it was also concerned that taxes on trading activities that were unrelated to religious activities‚ as well as Pay As You Earn on remuneration and other benefits were‚ not being paid.
SARS said it would reach out to the commission and faith community to raise awareness about the tax obligations of religious institutions.
The taxman goes to church
The South African Revenue Service (SARS) will investigate religious institutions for possible tax non-compliance.
In July last year‚ the Commission for the Promotion and Protection of the Rights of Cultural‚ Religious and Linguistic Communities released its final report on the commercialisation of religion and abuse of people’s belief systems.
Among its recommendations was that SARS should conduct an in-depth investigation into tax evasion by religious practitioners and that this should be done in partnership with the commission.
SARS said on Friday that the decision followed its own preliminary investigation and its meeting with the commission.
It said there were also reports suggesting that certain religious organisations and leaders were not in compliance with tax laws‚ and might be enriching themselves under the guise of altruism and philanthropy.
But a number of religious organisations are complying with their tax obligations‚ the revenue service said.
It said religious institutions may apply to SARS to be exempted from the payment of Income tax and certain other taxes. But there are a number of specific criteria that have to be complied with.
Churches should conduct activities in a nonprofit manner and no activity should promote the economic self-interest of any person.
Another criterion is that religious institutions are prohibited from distributing funds to any person other than in performing their religious activity.
SARS said it was also concerned that taxes on trading activities that were unrelated to religious activities‚ as well as Pay As You Earn on remuneration and other benefits were‚ not being paid.
SARS said it would reach out to the commission and faith community to raise awareness about the tax obligations of religious institutions.
- Joined
- Aug 8, 2018
- Messages
- 941
As far as I know, as per the article mentioned by @dualmeister - while the church's "religious activities" aren't taxed, if they pay a minister he should still pay income tax. If the church owns a shop selling books or coffee or whatever, that shop should still pay tax as normal.
If these are not happening then it's not a change of law that is needed but a proper enforcement of the current law.
The church I attend has a lay ministry (i.e. no paid clergy) and I would like the donations that I make go directly towards helping the poor, I don't care for SARS to skim them first.
If these are not happening then it's not a change of law that is needed but a proper enforcement of the current law.
The church I attend has a lay ministry (i.e. no paid clergy) and I would like the donations that I make go directly towards helping the poor, I don't care for SARS to skim them first.
- Joined
- May 18, 2015
- Messages
- 247
@rietrot
Not quite what I meant, all those tithes, all those 10th of people's salaries. That is income. That needs to be taxed as well. Every conceivable piece of income they receive should be taxed. Churches are essentially enterprises just like any other. I'm curious as to how they get away with tithes not counting as taxable income.
Not quite what I meant, all those tithes, all those 10th of people's salaries. That is income. That needs to be taxed as well. Every conceivable piece of income they receive should be taxed. Churches are essentially enterprises just like any other. I'm curious as to how they get away with tithes not counting as taxable income.
- Joined
- Oct 15, 2005
- Messages
- 14,584
And the coffee shop. Don't forget the coffee shop 
PS,
Over and above our tithes and normal giving, how can we as the Urban Edge Family get involved and partner in the financing of the Pinehurst Building Project?
- A “once off” commitment
- A debit order with a fixed monthly contribution
- An interest free loan amount
- A loan amount at a negotiated interest rate.
Wonder if they accept Bitcoins
PS,
Over and above our tithes and normal giving, how can we as the Urban Edge Family get involved and partner in the financing of the Pinehurst Building Project?
- A “once off” commitment
- A debit order with a fixed monthly contribution
- An interest free loan amount
- A loan amount at a negotiated interest rate.
Wonder if they accept Bitcoins
- Joined
- Aug 8, 2018
- Messages
- 941
Profit is taxed, not income. As @rietrot mentioned, churches are taxed like non-profits, they have a mission to conduct and they spend their donations on the mission, whether it's maintaining the building or feeding the poor or whatever. If they pay the minister a salary, then he pays tax just like any earner of income.
Even businesses which are for profit don't get taxed on their revenue, only on their profits.
Even businesses which are for profit don't get taxed on their revenue, only on their profits.
