I REFER to last Thursday's commentary, 'Megachurches' tax status
bears scrutiny'.
Megachurches get involved in commercial deals not motivated by
profits, but by practical needs for larger venues to accommodate
their growing congregations.
In Singapore, land plots for religious use are limited in size
and availability. So megachurches are, in a sense, 'forced' to take
the commercial path.
When considering whether or not to subject the funds of a church
and its related entities to taxation, a clear distinction should be
made between income generated from business activities, and tithes
and offerings received from church members.
In order to properly record and report the different forms of
activities conducted by a church and its related entities, it is
therefore crucial for it to make sure its organisational structure
and accounting functions are suitably set up and adequately
segregated.
Tan Lip Kee