'Church donations and tithing in Australia are not tax-deductible unless the church is also a registered charity, according to the country's tax code. While The Church of Jesus Christ has multiple charitable arms across the globe, the religion itself is not a recognized charity in the country.
To avoid having its members pay those taxes, the newspaper alleged the Church moved donations into a charitable trust. The funds were then transferred to LDS Charities Australia – according to the report – which it stated labeled as the “shell company.”'
Interesting that the corporation is not registered as a charity in Australia. Does anyone know why? I would assume Scientology and other cults have a similar situation in that country.
Eric, my understanding (based on reading previous articles) is that Australia's tax code does not allow for donations to churches to be deductible. Under the tax code, churches are essentially treated as private clubs. If the church has a separate charitable arm, i.e. Catholic Charities, then donations to that charity can be tax deductible. The charitable arm has to follow certain rules, such as the directors operating within Australia, and (I think) donations being used within Australia. Typical charitable endeavors might be running a soup kitchen, food pantry, or a subsidized home for the elderly.
The Mormon church, of course, thought it was above all that. Hence, its troubles.
I love how Australia treats churches in its tax code, and wish that the U.S. would do the same.
Edited 1 time(s). Last edit at 07/20/2023 09:06AM by summer.