City Harvest Church (CHC) has been questioned by the Commissioner of Charities over its $310 million purchase of a stake in Suntec Singapore which it announced two weeks ago, the Straits Times reported today.
The Church said earlier that it would use two floors in Suntec to house a 12,000-seat auditorium for worship services and that it would be used exclusively for its services, except for about five times a year to allow for international conferences or events to be held there.
The stake raised some eyebrows among Singaporeans who questioned if registered charities should be allowed to go into business and if the income collected by CHC through its Suntec rentals would be taxed.
An irate Singaporean Lester Lam wrote to the Straits Times Forum on 11 March 2010 questioning the relevance of giving religious organisations tax-exempt status when many of them own commercial properties and derive rental income from them.
“Should the Government continue to let religious organisations own commercial properties and earn income from rent? After all, the revenue these organisations use for the purchase is tax-exempt in the first place. Suntec City was developed for commercial purposes. With the church’s purchase of the development and its proposal to convert a section of the exhibition space for church use, is it in breach of the Urban Redevelopment Authority’s land-use policy?” he asked.
A letter jointly issued by the Ministry of Community Development, Youth and Sports, the Urban Redevelopment Authority (URA) and the Inland Revenue Authority of Singapore explained that “incomes earned by charities are tax-exempt because their main purpose is to provide public benefits through their activities.”
There are no laws against charities being involved in business activities except that they “must be done in the best interest of the charity and not subject the charity’s assets and resources to unacceptable risk.”
The Straits Times article did not reveal the exact questions asked by the Commissioner of Charities to CHC. Its Senior Pastor, Kong Hee could not be reached for comments.
All this church and temple so rich and still ask for donation.DONATE FOR WHAT?!?DONATE FOR POLISHING CREAM FOR THEIR BALD HEAD!?! FOR THE STUPID STICKERS?!?WTF MAN?
i LOL-ed when u said polish their blad head...nice one...
actually if church and temple so rich, why dun they just buy a plot of land and build malls for ppl...lol
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