Friday, January 21, 2011

Your Church Blog: National Commission to Examine Church Financial Practices

Your Church Blog: National Commission to Examine Church Financial Practices

Most religions and their places of worship have a really cozy relationship with their Government's taxation departments. But things may change as austerity bites. Churches may be asked to contribute for the greater good and not just for the good of their flocks, alone.
Most religious groups are registered as charities. This means that, in theory, they don't make a profit. Their 'income' from offerings, donations, will bequeaths and gifts are supposed to be put against their expenses. The bigger ones use a central bank system, normally far off shore, and a parish applies for funding as it needs it with any 'profits' going into the pot for the use of others as a gift from them to the needy other parish. So if one makes a profit they just give it to another one as a gift. This ensures that they pay no Corporation Tax or personal taxes either. Each minister/priest has a bank account with the off shore bank and draws in enough for their needs as 'income from abroad.'. He/she then places their own expenses against their income plus their tax allowances too. Its a great wheeze money wise being a sky pilot !!
The ministers and priests are treated as self employed and so they are a small business. A priest or minister is due a car allowance, fuel costs involved in ministering to the flock, gifts that they, in turn, make, housekeepers and anything that a small business can claim. The church, where he/she is sub contracted to work at, is a building owned by a charity who can organise loans against the asset value. The punters pay to keep it good for the bosses to get loans to keep up the good work. Just another type of capitalist system.

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