BY ANDREW M BROWN

HUNDREDS OF charities, many of them Catholic, have been urged to contribute ideas to the Government's review into charities taxation. They must offer suggestions before 1 December if they are to have any influence over how the government decides to tax them in future.
Speaking to the Charities Aid Foundation annual conference in London last Thursday, Dawn Primarolo, financial secretary to the Treasury, said: "This review is a unique opportunity for Government and charities to work together and take a fresh look at the way charities are taxed." The review will look at the current VAT arrangements enjoyed by charities. Charities currently benefit from tax relief worth £1.75 billion, made up of about £1 billion direct tax relief, £200 million VAT relief and the balance of relief from business rates.
Robina Rafferty of the Catholic Housing Aid Society said the current 80 per cent business rates helped city charities to avoid "crippling" rates. "We also value the gift aid system, but it would be useful if you could get relief on lower donations than £250.
"The value of covenants and gift aid has gone down because of the fall in the basic rate of income tax charities are doing the same work but getting less back. The government could do something about charitable exemption from VAT, which the commercial sector are entitled to."