Green Handshakes - Taxable income in Australia

by Listener 15 Replies latest watchtower beliefs

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  Listener

  I was doing some research on the taxable status of money being gifted to CO’s and travelling missionaries and was surprised with what I found. I had assumed that it was not taxable income in Australia.

  It is taxable income in Australia and it‘s likely that the same rules apply in some other Countries.

  A registered religious institution only receives tax free status on donations because they have been endorsed by the Australian Tax Office. Travelling Overseas and missionaries are not in this category.

  There’s a Tax Ruling that goes into great detail. It’s called IT 2674 and the following is an excerpt

  IT 2674 Income tax: gifts to missionaries, ministers of religion and other church workers - are the gifts income?

  ”36. Matthew is a visiting evangelist who receives voluntary unsolicited gifts of money and gifts in kind called 'love offerings' when he addresses a gathering of worshippers. These gifts are received because those attending are spiritually move to make the gifts. Matthew is not in any way motivated by the prospect of receiving gifts. Rather, he is motivated only by a genuine commitment to his religious beliefs. The gifts are assessable income and should be included in Matthew's tax return for the year of income in which he receives them.”

  https://www.ato.gov.au/law/view/print?DocID=ITR%2FIT2674%2FNAT%2FATO%2F00001&PiT=99991231235958

  Whether they are declaring it or not is another question.

  Surely in the USA it would be similar to a person receiving tips and similar laws would apply?
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  NotFormer

  If the WT were honest, they'd set up some sort of pay as you go (PAYG)* scheme to allow the COs/missionaries to have tax and superannuation** contributions deducted. It would make life easier for all concerned. However, if Sydney Bethel is as honest and ethical as I believe them to be, I imagine that they encourage the COs etc. to treat those donations as "under the table" payments.

  If anyone knows differently, or has some knowledge of how this sort of thing is handled here in Australia, please let us know. I always find this sort of thing interesting 💭 🤔

  * Basically a withholding tax system

  ** Something like the American 401k thing, but it's mandatory for all Australian employees to have an account with a superannuation fund.
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  Anony Mous

  There is probably a minimum amount you are allowed to receive in gifts before it becomes taxable income. In the US at least, unless you make more than ~40k at the end of the year, you do not pay any taxes, any income taxes paid are generally returned, state taxes may be different though, the CO also benefit from major welfare benefits as they don’t have an official income. They also don’t need to pay for food or lodging most of the time,

  So at the end of the day, how much do they really get? Do they get $1000 every week they visit a congregation? If they’re true believers, didn’t they take a vow of poverty, meaning they have to turn over anything like that to the organization?

  And let’s say, somehow a ton of cash payments are cleared and they stuff it in their mattresses, how will the government prove it and collect their share, you can’t get blood from a stone.
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  Ugot2bekiddingme1

  My Dad was soon appointed to be an elder, he was doing everything right, except giving out those green handshakes He was never appointed.
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  FedUpJW

  Whether they are declaring it or not is another question.

  No other question about it in my experience. They NEVER report it. In fact I was called in the back room back in the day when I still attended by an elder for stating in a meeting comment that state sales tax by law was to be reported to the state I lived in for durable goods purchased in a neighboring state which had no sales tax to comply with Caesars law. The "brothers" would routinely travel to that state to buy high cost items for themselves and others who placed orders in order to evade sales tax in this state. He said I was stirring up contentions.
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  blondie

  The state I live in has what they call a "use tax." Meaning if you go over the border to a state without sales tax and bring it back, you have to pay the going rate for sales tax in your state. For example, 5 percent. But then how does that state keep track of items you buy to catch you not paying that tax? I will check with the state department that handles that. "Most states do not actually enforce their use tax laws, with less than a fraction of individuals actually paying the tax. Businesses, however, receive much stricter oversight and must report the covered purchases on their tax returns." So I guess it is matter between them their god, not keeping the law because they can get away with. But then too many jws do things that they teach their god does not approve, serious things, and it only matters if they get caught by the WTS and its representatives. As if they don't teach that their god can read minds and the intentions of their hearts. They say: "Like the wicked immoral peoples of times past, they say, ‘God has left the land, he is not seeing,’ yes, he is dead." Ezekiel 9:9
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  jonahstourguide

  Great work Listener.

  This topic came up in a discussion with my still-in friends. I simply quizzed the 'green handshake'

  matter as I had always in the past observed the 'aspirational' ones and their envelopes.
  

  That conversation terminated with comments by my friends of my disenchantment with

  and general dislike of jwdom. The subject then switched to motorsport, something we all enjoy.
  

  However, I will be forwarding the relevant page to them.

  I actually was never aware of this tax ruling,,,thank you for posting.

  
  

  jtg
  
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  SadElder

  In the USA the receiver of gifts is not subject to income tax (unless there is a gift tax in their state) though it must not be a "gift" for services such as performing a wedding, baptism, or funeral as then it becomes taxable as earned income. The giver of the gift however is subject to certain limitations, here is a comment from H&R Blocks site:

  How much can a person give to another person tax-free?

  Gradually making smaller gifts: Each year, taxpayers can gift up to what is called the “annual exclusion amount” (in 2025, $19,000 per donor per recipient; $38,000 for married couples) without incurring the gift tax.
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  fulano

  Once you become a missionary you are supposed to officially leave your homeland. We did so in 1991 and when receiving money from brothers, which was seldom, sometimes from visitors to our missionary-home, or when back at your home-country for holidays, you didn’t even think of declaring it.

  Third-world countries don’t tax people on this.
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  joey jojo

  Anony Mous
  There is probably a minimum amount you are allowed to receive in gifts before it becomes taxable income.

  Yes - thats exactly right. At the moment its $18200.00 AUD, not really a lot.