Members may have seen recent reports of an article calling into question whether it is appropriate for charities to criticise those who exploit tax havens given their use of Gift Aid mechanisms.

The article equates the application of Gift Aid to donations by a wholly-owned trading subsidiary, and the claiming of Gift Aid on donated goods, to tax avoidance. According to the article, while perfectly legal, the use of such strategies removes the right of charities to comment on tax avoidance measures taken by others.

CTG Chairman John Hemming has replied, stating that the comparison is entirely unfair:

“The point with both of these arrangements is that they are agreed, sanctioned and promoted by HM Revenue & Customs. The tax guidance for charities contains sections explaining how to do it. The accused charities are using the rules exactly as intended. The same can’t be said of people who use tax havens.”