Consultants to present EU-wide tax report

Copenhagen Economics to highlight charities' problems

Consultants will give a presentation at the European Commission next month outlining the problems that the European tax environment creates for charities in EU countries.

Consultancy Copenhagen Economics is carrying out a survey for the commission in advance of a wide-ranging consultation on tax - principally VAT - expected to take place next year. Earlier this month, the firm told representatives of umbrella body the Charity Tax Group that it would present information on charities as part of a progress report.

"The commission has asked the consultants to look at the various economic exemptions that exist in EU countries and understand how they apply to not-for-profit organisations," said Mathieu Mori, a policy officer for the Charity Tax Group.

"Copenhagen Economics was very keen to learn more about this and to boost its understanding of charity taxation issues."

He said tax exemptions had been handed out to charities "more or less at random". He added: "The current tax regime is illogical, full of vague definitions and has no clear purpose, and it is important that the EU understands this situation and is aware of all the alternatives for reform."

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