>>If its a business, it should pay tax
But the current set up is you can pay tax free donations to charities ie gift aid. That's in effect what the charities are doing, donating all their profit to charity so in effect have no taxable income.
Of course, they are still paying plenty of NI, income tax etc.
Would be interesting to see what would happen if a govt was to act on this, it would probably end up costing the govt more!
So where you get the argument from some that if you increase income tax rates, the income may be less because higher earners will go offshore etc, if they started taxing charities then many of these charities would then need to charge local and national government more for the services that they provide for them in the first place!
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