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Apr 6, 2010
Megachurches 'forced' to go commercial
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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
Megachurches 'forced' to go commercial
<!-- by line --><!-- end by line -->
<!-- end left side bar --><!-- story content : start -->
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