Charities / Educational Bodies / Not-for-profit

Tax is challenging and can be a grey area for organisations operating in these sectors. Unnecessary tax exposures can impact on available funding for the objectives of these organisations.

Some of the tax issues you should be aware of include:

  • Although charities are tax exempt, there may be tax implications when transactions or activities move outside of charitable objectives.
  • Charities, as an employer, are required to meet PAYE/PRSI obligations on an on-going basis. If these are ignored, there are financial penalties.
  • Should an educational institution or semi-state body be involved in building projects, an exposure to the complex rules of relevant contract tax and VAT can arise.
  • The absence of profit motivation does not automatically make a charity entitled to tax exemption. In examining an application for tax exemption, the Charities Section will examine each case with regard to the purpose of the organisation, the actual activity of the applicant and case law.

Charities / Educational bodies / Not–for-profit organisations are bound by the tax code and the rules that apply to commercial business – the tax authorities will require these obligations to be met. Mazars has extensive experience in dealing with and supporting these organisations in managing their tax obligations.

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Related pages

Charity Sector

Charities

Charities play an important role in building and shaping our civil society. The Charities sector continues to face considerable challenges in the current climate.