OECD in head-to-head VAT clash with UK charity body
The OECD and the UK’s Charity Tax Group have published reports on the taxation of philanthropic activities with diametrically opposed recommendations to the imposition of VAT on the sector. Time will tell whether the Chancellor of the Exchequer agrees to reduce the VAT burden on charities, or whether the OECD recommendations are implemented in a way which increases the already substantial amount of VAT paid by the sector.
Charity Tax Group reports the UK charity tax gap is £2 billion a year
A recent report by the Charity Tax Group provides compelling economic evidence to support a new charity VAT rate. Complementing the recent Taxation and Philanthropy report, the Charity Tax Group (CTG) has recently commissioned a major new research project undertaken by London Economics. The report finds tax continues to be a significant burden on UK charities, with the net tax cost to the sector reaching a staggering £2 billion a year.
What are different countries doing to attract the rich?
Rachel De Souza
There has been much commentary recently around how taxes will need to increase to pay for the cost of borrowing as a result of the pandemic. Tax rises are the most basic solution to the age-old problem of raising revenue, but an increasing number of countries are taking a very different approach.