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.
It's always a temptation when the money pool grows beyond the scope in any organisation.