Taxes Putting Churches in Danger in Canada

May 18, 2017 Taxation in China

Churches in CanadaOTTAWA – Churches in Canada are now seeking extra tax bills after enjoying exemptions for years, and the new financial pressure is putting the religious groups under extra pressure.

Some churches in Canada are currently undergoing investigations launched by local tax authorities, aimed at seeing the religious organizations pay a level of taxes that is more in line with a business.

Typically churches in Canada do not need to pay council tax, however, tax authorities are now taking steps to see churches pay at least a portion of the tax.

Investigators have allegedly visited churches to investigate the use and purpose of each room in the church, in order to determine what proportion of the building is used for community or religious purposes.

The exact amount of tax to be paid is being calculated via the proportion deemed to be used for church purposes.

Further, some churches have been told that their tax exemption only applies at the times that they are holding services, meaning that if they are not performing or service, then they must pay standard taxes.

Some religious groups have claimed that the less-favorable tax treatment has already put financial strain on some churches, pushing them to the brink of closure.