About $2 billion is generated by the charitable sector each year — and it’s all untaxed.
Many charitable organisations, such as private schools, universities and churches also run commercial businesses that turn a tidy profit.
As charities, they are entitled to tax breaks and exemptions not available to other businesses, creating what some say is an unfair tax structure.
Many tax experts and politicians believe these exemptions have been applied too liberally. Now, the government is asking for public feedback on proposals to reform the tax system as it applies to charities.
Dr. Michael Gousmett from Canterbury University’s Business School has long advocated for change, and he speaks to Emile Donovan.
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