Frankly Speaking :The Dynamics Of Tax Exemption

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Hmmm the topic looks like a table shaker. Well, we are here to give our 2 Cents and do justice to all themes. Let’s go there.

Cole Hawkins

What is Tax system in the first place and how does it benefit the society?
It is a process through which the government collect some structured percentage of earned income from the citizens to fund public infrastructures such as the road, bore holes, hospitals schools etc. Individuals and businesses pay taxes according to specified government policies that guides such payments and deductions. However, there are exemptions granted to organisations, businesses and individuals based on government decision and constitutional rights.

Should places of worship be taxed?
Worship centres are registered under the non-profit organisation. They are granted tax exemption by the government. However, some or majority of these organisations operate and run several chains of businesses, disguising as worship centres but siphoning funds that should go to the government as tax. Yes, they are exempted but if they run businesses, it is supposed that the business name differs from the worship centre and accurate tax paid from the earned income. However, what we see most, are chains of businesses operating under the worship centres name.

On the other hand, the government authorities aren’t helping matters, the taxes generated from taxpayers are not being well accounted for and utilised. They are allegedly siphoned to individual pockets and diverted to their personal projects.

Recently, in my country of origin, some concerned employees came to meet with the management team regarding tax deductions from salaries stating that they are tired of paying that fund. They claimed, the taxes are not being used by those in authority to better their lives in any way. No steady power supply, no good road, infact, no basic public amenities. They stated that rather than continue paying the same to the government purse, they want to use the fund to install solar energy, open up bore holes and better their family lives.

After back and forth with them, to find an escape route, we pleaded that they see reasons with the deduction while we present their request to the board for further deliberation.

Geralt

Now, from the above scenario, it is obvious that the parishioners and governing council of these worship centres wouldn’t want to pay taxes. Many of these worship centres are genuinely doing charity work. Some have helped families and individuals passing through hard time to find their rhythm, built specialist hospitals that are saving life. Again, some have foundations through which skill acquisition and free trainings are conducted for citizens. All the funds are generated through the church activity which runs into millions. So, those expenses are even more than enough to cover the supposed tax. Some of these parishioners are also stakeholders in government parastatals and once such move is made, it would be a dead on arrival move.

Therefore, he who must lead must lead with example, it would have been a fair move if the places of worship pay tax but since the fund caretakers are not able to prove themselves faithful in the funds entrusted in their care, adding more streams of funds to such accounts will mean further siphoning of funds.

So, I will suggest that those responsible for the worship centres should be diligent in their activity to humanity such that accountability and transparency is not smeared on the altars of highhandedness.

Thank you for stopping by.

Frankly Speaking :The Dynamics Of Tax Exemption | Ecency