In the third part of the serial, we painted the following scenario and raised a poser: “A ministry sustains itself from the tithes, offerings and other donations from members of the public, including, but not limited to its members and congregants. From this tax-free income, it establishes a book store, video and audio tape shop and sometimes even a printing press. Whether the materials and services sold in these outlets are solely those of that ministry or not, profit is made from such operations. Should such profit be tax-free particularly as the products and services are hardly ever subsidized?
As I write this, I am fully aware that I am reacting to a speculation. I am not aware that the Lagos state government or any other government has plans to tax the churches. What I believe I have heard said by Governor Babatunde Fashola of Lagos is that wage earners in ministry would be expected to pay tax, like every other income earner in the state. But the question has been on the questionnaire of virtually every journalist who has had an interview with a church leader lately.
For example, Sunday Independent’s last edition carried an interview with Rev Dr Felix Nwosu, General Overseer of Christ Foundation Sabbath Mission, Lagos in which Ejikeme Omenazu dwelt extensively on the subject. He opened by asking the man of God if there were conditions under which churches could pay tax. To which the man of God replied “no” and went on to describe any such attempt as “asking God to pay tax”. That, to him “amounts to rebellion.”
In the same edition, Aramide Oikelome’s report of a press parley with the Prelate of Methodist Church Nigeria also contained a reference to the subject. The relevant portion reported Archbishop Sunday Ola Makinde as cautioning “against government’s proposed imposition of taxes on the income and tithes of churches and other non-profit organisations…” Makinde, continues the report argued that “as charity and non-profit organisation, which bring hope to the hopeless by preaching the message of healing and salvation, exemption from tax payment is something that remains laudable and commendable.”
As if those were not enough, Pastor Wale Adefarasin, national secretary of the Pentecostal Fellowship of Nigeria was also confronted with the same issue in another newspaper interview. Is it really biblical for the Church to be taxed, he was asked. His reply: “You know what Jesus Christ said considering collection of tax. He said render unto Caesar what belongs to Caesar. There is a legal obligation for every Nigerian to report and complete an assessment form at the end of every tax year upon which the income is assessed, and tax is based.”
Mercifully, there is substantial agreement between (Lagos) government pronouncement, as I recall it, and the Christian leaders whose reactions I have read on this otherwise potentially contentious issue. As evident from Pastor Adefarasin’s statement above, it can be inferred that PFN is not averse to tax payment by church workers as distinct from the church. Rev Nwosu also drew a line between ministry and mission works on one hand and commercial activities of churches on the other. He told his interviewer: “If a church is involved in commercial activities for profit, it is right to ask it to pay tax. Books, CDs and VCDs, which bring in money, should attract taxes because they are forms of business. Schools, hospitals, transport ventures and factories run by churches should attract taxes…The government should strike a balance, clarify their policies and categorise the classes of men of God who should pay tax…” The report on the Methodist leader’s media meet also indicated a similar viewpoint: “The Prelate who showed a card certifying him as a tax payer said payment of property tax was understandable since churches derive profits from such ventures, but frowned at any attempt to tax offering, tithes and donations to churches.”
It would therefore seem that if the Lagos state government restricted taxation to salary-earning clerics and well defined commercial activities of churches, there would be no controversies. The problem, as Archbishop Makinde put it, would be if they “attempt to tax offering, tithes and donations.”
Does government want to do that? I think, indeed I hope, not. But as I said, when reporters begin to hammer on an issue, it would be unwise to dismiss it. That is why I wish to join my voice to that of others to call on the authorities in Lagos to step away from any such contemplation, as it will create unnecessary disharmony.
Having said that however, I wish to state without equivocation that the church, particularly the non-denominationals run largely as sole proprietorships, need to get their accounting acts together. This is an issue we had raised in this column before. In a serial titled “Integrity Check for the Church.”
In the third part of the serial, we painted the following scenario and raised a poser: “A ministry sustains itself from the tithes, offerings and other donations from members of the public, including, but not limited to its members and congregants. From this tax-free income, it establishes a book store, video and audio tape shop and sometimes even a printing press. Whether the materials and services sold in these outlets are solely those of that ministry or not, profit is made from such operations. Should such profit be tax-free particularly as the products and services are hardly ever subsidized? Incidentally, this situation is clearly exemplified by the fees being charged by secondary and tertiary educational institutions established by churches and ministries...”
We also raised issues about the fixing of remuneration for ministers: “How much should a general overseer or superintendent or presiding bishop earn? Who fixes such income and by what criteria? Of course this speaks directly also to the issue of whether not-for-profit organizations should be run as sole-proprietorships. In other words, is a ministry independent of its founder or are they one and the same legal persons? What obtains today, with very few exceptions, is that there is no difference.”
We wrote in 2007 against the background of an investigation just commenced on the finances of some well-known Pentecostal televangelists in the United States by Charles Grassley, an influential member of the Senate Committee on Finance. He had written letters to Kenneth and Gloria Copeland; David and Joyce Meyer; Randy and Paula White; Creflo and Taffi Dollar; Eddie Long; and Benny Hinn, asking “detailed questions about their expenses pattern and the tax exempt status of some specific expenses or associated projects or establishments”. In a press release explaining his action, Grassley had said: "I’m following up on complaints from the public and news coverage regarding certain practices at six ministries…The allegations involve governing boards that aren’t independent and allow generous salaries and housing allowances and amenities such as private jets and Rolls Royces. I don’t want to conclude that there’s a problem, but I have an obligation to donors and the taxpayers to find out more. People who donated should have their money spent as intended and in adherence with the tax code."
Of course Grassley was condemned in several circles as an instrument of the enemy with accusations of persecution and inquisition freely hauled at him. A number of the ministries eventually complied while some declined. We are yet to see the end of the matter.
But we did warn at the time that the same oversight rights being exercised by Senator Grassley is available to legislators in Nigeria and so, should the National Assembly, for instance, feel a need to do so in the public interest, it could conduct such an investigation. As we said then we know that “initiators of any such investigations in Nigeria will be subjected to emotional and religious blackmail, no matter who they are, their antecedents and intentions, but in the end, should they persevere, I would be surprised if they do not unearth cans and cans of worms…”
Thankfully, no such investigation has yet been initiated. But think what might happen if, for instance, government were to be unconvinced about a certain church’s differentiation of the strictly non-profit activities from its profit operations for accounting and therefore taxation purposes, and decide to find out! What would be our reaction? As in 2007, I commend to all church leaders 1Corinthians 11: 31 which in the Message reads: “If we get this straight now, we won't have to be straightened out later on.” Food for thought, don’t you think?
FROM MY IN-BOX
RE: NOT YET IN AKPOYIBO’S IMAGE
On your report on the Lagos State Commissioner of Police Mr Akpoyibo, it's important to ask if Christians, including you the editor, do pray constantly for his success in policing Lagos State. We can contribute to his success by sending information, albeit of known criminals and criminal activities around us to his office, even anonymously, should such fall into wrong hands.
A.Olajide, London, UK.
PIXES: Archbishop Sunday Ola Makinde (Right) &
Pastor Wale Adefarasin
No comments:
Post a Comment