News that non-profit foundations and associations will no longer have to file and pay taxes (see related story) is most welcome. Foresee Foundation sounded the alarm bell during a presentation to Parliament last February, stating that international agencies would be reluctant to make donations for good causes if these end up in the national treasury, and at least one had supposedly already indicated moving to another island fast should its contributions be taxed.
Finance Minister Richard Gibson explained that a law passed last year had resulted in some “undesirable consequences” that were now being corrected. He said the intention had never been to burden non-governmental organisations (NGOs) doing important social and humanitarian work on behalf of society this way.
Of course, the story is a bit different for foundations or associations that do operate what can be considered profitable businesses. Where money is earned taxes must obviously be paid, it’s as simple as that.
It was also announced that recipients of moderate amounts in Government subsidy will no longer require audited reports. A word of caution seems warranted here, to ensure that public funds continue to be spent correctly and in a responsible manner.
Source: Daily Herald
A word of caution