When we talk about taxes and paying of tax, most of us have the belief that all any means of income would attract the need to pay tax, but it's then surprising when we realise that NGO organisation and religious bodies such as churches and mosques don't pay tax despite the fact that lots of money pass through their organisation and many can't help but wonder why. Well the reasons isn't Farfetch and that's because these are religious organisations that are mainly established for the purpose of worship, spiritual teachings and the likes, but understandable during the course of their programs people either donate, pay tithe, offerings and the likes, but still these ain't taxed, the reason is because they're classified as a charitable/ecclesiastical organisation, and they tend to run orphan cares, scholarship program, free health care among others with what they get.
Since many are clamouring for religious body to pay tax, I'll like to clarify that even though these bodies get lots of money, it's worth noting that those money ain't anybody personally fund, and the law exempt them from paying tax if they use those money for the growth or aim of the organisation, such as building a temple where they can worship, giving out free healthcare, feeding people or other form of charitable act we've seen these religious bodies perform. And the thing is that inasmuch as the bodies keep using the money they get from donations, offering and the likes for these things, they'll be exempted from paying tax.
However, when such religious bodies invest part of what they earn to start a business and earn interest, then it's expected of them to pay tax from the interest or the business they invest in. Take for instance many churches now own schools both in primary, secondary and tertiary level and inasmuch as these businesses ain't free, so de students pay and they make money from the business, then they must pay tax based on the interest earn from such business. Even though the government might overlooked them from paying tax when the money earned is used to develop the bodies and help people, it won't ignore when they start making interest via using the money gotten for business.
Additionally, although the government usually don't mind when such religious bodies don't pay tax, however whenever they pay their staffs such as pastors and other workers, it doesn't mean those staffs too would be exempted from paying tax because they're paid with a money that wasn't taxed at first. It's expected for them to pay tax, because the money is no longer like an NGO one these religious bodies are almost similar too, it's now a personal income when it's used to pay someone like their staffs, so such as staff is expected to pay tax from whatever is or her wages is.
Overall, it's worth knowing that I don't buy the ideal of religious bodies being forced to pay that when all they earn or got from their members are mostly used for the development of their organisation and helping lives. Afterall even they're not taxed, we've seen many religious bodies play a part in nation building, such as construction roads that lead to their place of worship, donating to government hospitals amongst many others to name but few.
All photos are generated using ChatGpt.