|
March 27, 2002
Dear Friends,
The stated purpose of the South African Council of Churches (SACC)
Public Policy Liaison Office is to "demonstrate the SACC’s
commitment to strengthening the voices of poor and marginalised
groups in the public policy process." So it has been with
some misgiving that I have found myself increasingly drawn into
the oh-so-exciting world of tax policy over the past 18 months.
Let me explain…
South African law has long granted tax exemption to three categories
of institutions—religious, charitable and educational—in
keeping with a 400-year-old tradition in English Common Law. Under
apartheid, however, these broad categories of exemption were very
arbitrarily applied by the South African Revenue Service (SARS),
the local equivalent of the IRS. The South African government
viewed many such bodies, particularly church and community groups
working for civil and human rights, as threats to continued minority
rule. Withholding tax exemption became one way of punishing these
organisations. Shortly after the democratic government was elected
in 1994, it formed a commission to review the antiquated tax laws
and to recommend revisions. This body issued a series of reports
on different topics over the next few years, and these were subsequently
translated into legislative amendments. In 1999, the commission
published recommendations relating to non-profit organisations.
It proposed, among other things, that tax exemption be extended
to a much broader range of "Public Benefit Organisations"
(including religious organisations) and that much more detailed
and objective criteria be identified to assist SARS in identifying
what constituted a "public benefit organisation." These
proposals were captured in a set of amendments that were debated
and enacted by Parliament in 2000.
The implementation of these changes has produced three major
sets of challenges for the SACC. The first has been a challenge
of advocacy. Churches did not pay much attention to the legislation
when it was being drafted, so the resulting act was well-attuned
to their unique needs and diverse organisational structures. It
was only after the act was passed that they began to identify
problems that the changes would create for them. Our office has
therefore had to compile and reconcile the sometimes competing
concerns of the SACC’s different denominational members,
develop ways to bring these problems to SARS’ attention,
and facilitate dialogue between SARS and the various churches
to develop consensus around solutions. Consequently, I now have
a copy of the tax code on my desk, beside the Bible and the PC(USA)
Mission Yearbook. (The tax code is thicker than the latter but,
mercifully, not the former—yet!)
The second has been a challenge of interpretation. Part of this
has been to help our members to understand the intricacies of
the tax laws and the recent amendments. Last year, we produced
a booklet entitled "Churches and Taxation in Democratic South
Africa" in time for distribution at the SACC’s national
conference in an effort to explain the new system and to identify
potential pitfalls.
But an equally great challenge has been to help churches to come
to terms with their rights and responsibilities in a multi-faith,
multi-cultural secular democracy. The apartheid government liked
to characterise itself as a "Christian democracy," though
its behaviour was neither Christian nor democratic. It did, however,
give privileged status to (certain) Christian beliefs, practices,
and institutions in some fields. The new government has been at
pains to ensure that all South Africans enjoy equal protection
and respect under the law. So some privileges that churches took
for granted (even churches that spoke out against apartheid) have
been curtailed, such as biblical studies in the school curriculum
and public holidays determined by the Christian calendar. This
has prompted some churchgoers to view any change in state policy
that affects the churches as an attack on freedom of religion
(i.e., Christianity).
So part of our role has been to help churches to decide which
aspects of the new system should be challenged and which should
be accommodated as fair, even if more burdensome. For example,
should churches be excused from meeting the same levels of financial
transparency and public accountability that they expect of government
agencies and non-governmental organisations? If so, why? Is it
because churches are immune to financial malfeasance? Or because
there are unique aspects to the way in which the religious sector
is organised that makes it difficult to comply with certain reporting
standards? These are some of the questions with which we have
been wrestling collectively.
The third challenge has been one of networking and communication.
Whereas the old government was prepared to listen selectively
to certain sectors of the religious community, the new government
is eager not to favour specific groups. One thing we have learned
is that we are more efffective when we are able to bring a consensus
position supported by a wide range of religious bodies. Consequently,
we have sought to consult widely, not only within the membership
of the SACC, but also among Christian groupings outside the SACC
and across faith communities. Although about 70% of South Africans
are Christian, only about half of all Christians belong to denominations
that are members of the SACC. We have therefore had to reach out
to groups such as the independent African Christian churches as
well as the Jewish, Hindu, and Muslim communities to develop joint
positions.
In the end, tax policy, while sometimes seemingly dry, is ultimately
closely related to the SACC’s objectives of social and economic
justice. In democratic societies, taxation is a central mechanism
for the redistribution of wealth and the financing of social delivery.
It is important that it be designed and implemented fairly.
As I write, Christians around South Africa and around the world
are preparing once again to celebrate the death and resurrection
of Christ. I am looking forward to taking part in Maunday Thursday
and Good Friday services, then going to visit friends for a Cape
Town tradition—a Good Friday meal of pickled fish and hot
cross buns. An odd combination, but it works! Let me close, then,
with best wishes for a joyful and peaceful Eastertide. May your
lives be perpetually renewed by the redeeming and reconciling
love of our Saviour.
Shalom,
Doug
The 2002 Mission Yearbook for Prayer & Study, p. 46
|
