The New Paper 9 June 2010
PASTORS who own private jets and move around in luxury cars.
All on the back of millions in donations they collected through
church members.
Such excesses prompted a string of governments to raise issues
of governance and transparency.
In the US, a Senate Finance Committee was convened in 2007 to
investigate if tax laws were up-to-date with the corporate-like
activities of mega-churches.
The next year, it was Australia's turn to ask the same
questions. The non-profit sector there, which includes
mega-churches, was valued at A$80 billion (S$94 billion) then.
There are no conclusions yet. In the US, only a few
televangelists provided the documents required. And in May 2010,
the Australian Senate again agreed to hold inquiries into the laws
regarding the tax exempt status of religious groups and charities.
In Singapore, religious organisations, and groups that work for the
advancement of religion, are also registered as charities under the
Societies Act.
Charities are exempted automatically from paying income taxes
from 2008. They are not required to file income tax returns.
But there are charities that struggle to make ends meet and then
there are others that have millions in their reserves.
With that kind of money, should a tax rule, designed to be used
for charitable purposes be enjoyed by all groups?
Or should Singapore, like the US and Australia, relook the tax
exempt status of charities here? Associate Professor Ho Yew Kee,
Vice-Dean (Finance & Administration) of the NUS Business
School said: "The issue has nothing to do with taxes. The issue
has everything to do with: one, what is the purpose of the
commercial arrangement; two, who benefits from it; three, do the
members know about it; four, how do you govern it."
Prof Ho said, the money would only end up with the IRAS and not
the people who need it.