I think I now understand what all this hullabaloo about the
purchase of Suntec City is all about. Though I think that there isn't
anything currently legally wrong, I frown upon this purchase.
[pls post scripture related issues at my other thread: 'City Harvest Church members should read bible more often'
(my concern here is about if and when Charities should be taxed)].
I believe that the question of whether
Charities/Not-for-profit-organizations (NFPO)should be taxed relates to
the the nature of income from their operations and how such income is
spent. I define 2 types of income- donations and fees, note 3 possible
current situations of income dilemmas and suggest a mechanism of audit
for their expenses.
As the name portends, NFPO organizations ought not earn profits,
however, this may inadvertantly occur in 3 scenarios:
a) Investments of capital: e.g. Equities, unit trusts, property: These
should NOT be allowed, being NFPO organizations, their focus ought to be
in helping their charges, all excess shall be in cash deposits or fixed
deposits not exceeding 2 years. Foreign currency deposits of 6 months,
or up to 3 years projected expenditure may be allowed with written
permission from the COC, renewable upon expiry.
b) Property, Equity, Unit trusts, Warrants, Foreign currency with the
excception of (a): NOT allowed. NFPOs should be prepared to support
their charges in good times and bad. The recent Madoff scandal [wiki], recession have showed such reserves to be at
severe risk of erosion during crisis. NPOS if allowed to be affected by
such economic fluctuations, would result in a very unstable country,
easily overcome by any recession. Should a NFPO property be
underutilized, NO rent in excess of the maintenance cost proportional to
the property may be collected. It is recommended that NFPO
organisations embrace the spirit of community, helping to develop other
NFPOs/ develop new synergies to provide better services to the
community.
c) NFPOs should in general not profit from services provided, however,
due to understandable variances in service-demand, profits might arise
e.g. a nursing service, anticipated to treat x patients, ends up
treating exceeds its target by 25% resulting in surplus collection- this
should NOT be taxed, however, immediate notification of the COC and
special mention in the annual accounts be made, should an anticipated
income (donations and profits) surplus of $100,000 or 15% existing
reserves, whichever higher occur.
That said, every registered charity, prior to beginning the work-year
(decided by the charity), shall submit to the COC and make publicly
available, its income expense budget plans, current assets and
liabilities for that work year. Immediate notification of the COC is
required should the anticipated income-expense plans change or deviate
by more then 50% for the given year. (charity work years should not need
to be IRAS/COC specified because NFPOs are not expected to pay taxes).
By my current opinion, City Harvest Church (CHC) should thus NOT be
allowed to purchase the Suntec property as Suntec City is obviously a
commercial property, and as I described, unsuitable for NFPO ownership.
Should CHC wish to own Suntec City, it must apply to URA to convert the
status of Suntec City to that of a NFPO one before attempting to
purchase it. Otherwise, CHC, with it's enormous budget may apply to rent
the said premise to cater to its well-to-do congregation.
Of course, embracing the power of immense faith, I'm hopeful that CHC,
its leaders and strong 30K congregation, would not fail in its endeavors
whilst abiding by the true spirit of God and Laws of the land.
Truly am I sorry to disappoint, but past evidences such as the monies
that charities lost in the Madoff scandal; 'Is this $10m site the reason behind the PKMS fracas?'-
"... a struggle for control over this money and potential fortune..."-
have both proven the fallibility of man. Any religious organization,
holding this immense amount of property/ money remains a potential
victim of such large fall out, a tear to our social fabric and a threat
to national stability.
So sorry, it is with the spirit of charity that register my objection to
the CHC purchase.
In addition, I believe that all properties designated NFPO should be
charged property tax at the current concessionary rates payable.
Property taxes should be charged on ALL properties- the concessionary
rate being enough as recognition for the good that any NFPO does for
society. Sure, you argue that the 'Mega' NFPOs get penalized, then
again, do NFPOs really need to be mega?
| Matthew
25:40- And the King shall answer and say unto them, Verily I say unto you, Inasmuch as ye have done it unto one of the least of these my brethren, ye have done it unto me. |
If numbers, collections, followers is what Pastor KH wants, then I
wont bother disputing the figures on his website. However, if you ask
me what 33,000 young, healthy, educated people can deliver to this
world, I'd say that they are under-performing.
So in peace, I quote from Romans 13 , my reference though, yours (#17) is
viewable at: fundamental teachings of City Harvest Church.
Romans 13 (New International Version)
Romans 13
Submission to the Authorities
1Everyone must submit himself to the governing authorities, for there is no authority except that which God has established. The authorities that exist have been established by God. 2Consequently, he who rebels against the authority is rebelling against what God has instituted, and those who do so will bring judgment on themselves. 3For rulers hold no terror for those who do right, but for those who do wrong. Do you want to be free from fear of the one in authority? Then do what is right and he will commend you. 4For he is God's servant to do you good. But if you do wrong, be afraid, for he does not bear the sword for nothing. He is God's servant, an agent of wrath to bring punishment on the wrongdoer. 5Therefore, it is necessary to submit to the authorities, not only because of possible punishment but also because of conscience. 6This is also why you pay taxes, for the authorities are God's servants, who give their full time to governing. 7Give everyone what you owe him: If you owe taxes, pay taxes; if revenue, then revenue; if respect, then respect; if honor, then honor.
Love, for the Day is Near
8Let no debt remain outstanding, except the continuing debt to love one another, for he who loves his fellowman has fulfilled the law. 9The commandments, "Do not commit adultery," "Do not murder," "Do not steal," "Do not covet,"[a] and whatever other commandment there may be, are summed up in this one rule: "Love your neighbor as yourself."[b] 10Love does no harm to its neighbor. Therefore love is the fulfillment of the law.
11And do this, understanding the present time. The hour has come for you to wake up from your slumber, because our salvation is nearer now than when we first believed. 12The night is nearly over; the day is almost here. So let us put aside the deeds of darkness and put on the armor of light. 13Let us behave decently, as in the daytime, not in orgies and drunkenness, not in sexual immorality and debauchery, not in dissension and jealousy. 14Rather, clothe yourselves with the Lord Jesus Christ, and do not think about how to gratify the desires of the sinful nature.[c]
Love and God Bless,
BicCherry