God and Taxes

YOU look at your pay slip and the amount paid in tax and you sigh.

Then you think about the National Health Service and all the services we get and we suck it up. That’s life.

But 30 years ago, a tax was introduced that split the UK, both geographically and, some would say, morally.

The Rev David Sinclair, currently working as a Mission partner with the Evangelical Church of Czech Brethren, remembers the community charge – dubbed the the ‘Poll Tax’ well, but not fondly.

“In the 1980s, when I was in training for the ministry of the Church of Scotland, I was invited to preach in the congregation where I had grown up. I preached on Romans 13, on authorities and obedience and taxes, and on the impending imposition of a new and unpopular tax in Scotland (not, at first, in the rest of the United Kingdom). Local taxation was to move away from a calculation based on the rental value of the house you lived in and, instead, charge each individual in the council area the same (with some exceptions).

“I leant quite heavily on Paul’s reference to conscience as I talked about the plans and about those, including some in the churches, who argued that the tax should neither be collected nor paid. I said that, in spite of my hesitancies and disagreements, I would no doubt end up paying what was demanded of me, but that we should understand those who would not do so, and understand their willingness to risk being imprisoned for that refusal.

“At the door, after the service, one elderly man approached me to tell me that he was not going to shake my hand. Others since may have not shaken my hand for one reason or another; this, however, is the only example I have of someone who came to make sure I knew he was not doing so. A woman passed as our short conversation was going on – and suggested that my interlocutor was bringing me a word from God.

“It may have been that these two people stood to gain from the change being introduced. It may simply have been that it was not acceptable for me to suggest from the pulpit that there should be understanding for civil disobedience. There was no time, nor was it really the place, to reach that amount of detail. The poll tax was divisive, even in the church.

“The community charge, to give its official name, moved the burden of local taxation away from people, often living alone in largish, valuable houses, to those who lived in households with more adults and less space. It was a move that increased the tax burden on those with less, benefitting those with more – regressive taxation.

“The tax was also prone to poor administration. In one case in St Andrews, where I served in my first charge, a pensioner went every week to the local office to pay the community charge for himself and his wife – and was given a receipt for the money he had paid. He never noticed that the two payments he made were every week being credited only to him (he was not accustomed to this new world of individualism). His wife noticed, though, when she began to receive threatening letters. They told her that she was failing completely to pay what she owed, and classed her as a poll tax refuser. Her husband received no letters telling him that he was paying twice as much as he should.

“The government eventually took opposition to the poll tax seriously, but only after its introduction in England led to rioting in the streets of London. It has been seen as a damning indictment of the politics of the day that, while civil disobedience remained civil and peaceful, it was ignored. Action only came when there was violence in Trafalgar Square.

“In the end, the poll tax contributed in large measure to the demise of the rule of Margaret Thatcher; her successor, John Major, returned the country to a system much closer to the previous system of rates. Local services are always wanted, often criticised for being insufficient, but often paid for reluctantly. Yet the money has to come from somewhere and the debate continues but no one is arguing for a return to the poll tax.”

Christian Aid is also involved in trying to create a fairer system of taxation for everyone. Their campaign targets those companies who avoid paying tax, in spite of making enormous profits.

Sally Foster-Fulton is Head of Christian Aid in Scotland.

“We should tell a different story about tax: that it allows us to contribute to services and infrastructure shared by all, and that paying it is not just a duty but a privilege.

“We should tell a different story about tax: that it allows us to contribute to services and infrastructure shared by all, and that paying it is not just a duty but a privilege”, she says.

“The Rev Dr Rowan Williams, Chair of the Board of Trustees for Christian Aid and former Archbishop of Canterbury is in no doubt about the morality of taxation. ‘Many of the world’s largest companies seem to have forgotten that they have moral duties, as well as legal ones. They must support human flourishing, not least by paying their fair share of taxes in all the countries where they do business – and being fully transparent about the relevant data.’

“Lennart Reinius is Christian Aid’s Country Manager in Zambia, a country rich in minerals yet where two thirds of the population live in poverty.

‘Tax dodging in Zambia is rife. The multinational companies who extract copper from the land do not pay the full value of tax which should, in turn, go to Zambians. Unfortunately, this is not an unusual situation. Multinational companies and ultra-wealthy individuals are often more powerful than governments in many places. This power imbalance degrades conditions for vulnerable workers, allows systematic abuses of taxation and even human rights violations by companies, and thrives on the continued secrecy of offshore financial centres.’

“Christian Aid’s vision is to see a world where everyone has fullness of life and where global resources are equitably shared and sustainably used. Together with our partners across the world, we tackle the root causes of poverty and challenge the systems that keep people poor. When it comes to tax justice, our campaigning work aims to remove the loopholes that allow tax dodging; create a transparent global financial system; and lift the veil of secrecy of the international tax system.

“The issue with tax is one of perception. Tax is a powerful and necessary tool for creating and nurturing a firm infrastructure where everyone is safeguarded and supported. Returning a percentage of our wealth or earnings to the public sphere for the benefit of all is an acknowledgement that we are part of society, and that we all depend on one another. Our riches are not ours alone.

“Yet in rich and poor countries alike, it is still too easy for large companies and wealthy individuals to avoid paying their fair share of tax. And too often, tax is seen as negative: a burden to be minimised, something to be avoided, something from which you need a haven rather than the means through which our societies can flourish.

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“We all use public services including education, health, policing, housing, street lighting, transport infrastructure, environmental protection and much more. Services like these are essential for our common good and a sign of how – as a society – we care for each other.

“Tax is also a good way to redistribute income and wealth. A progressive tax system, where each contributes according to their means, is an essential basis from which to tackle poverty and inequality.

“It is no secret that many multinational companies don’t pay enough tax – or any tax at all – on their profits. But, while the secretive nature of tax dodging makes it very difficult to measure the breadth of the issue, organisations such as the United Nations and the International Monetary Fund have estimated that developing countries lose between $100 billion and $300 billion every year to tax dodging. These funds could be used to provide clean water, healthcare, education and many other essentials that we take for granted. And in developing countries, these services can make the difference between life and death.

“The fact remains that big corporations often do this by taking advantage of tax rules that are currently rigged in their favour, they are able to exploit loopholes in the law and to test and stretch tax rules to breaking point.

“Christian Aid’s campaign targets those companies who avoid paying tax, in spite of making enormous profits.

“Tax havens cost the UK economy billions of pounds in lost revenue each year. They also cost developing countries hundreds of billions of pounds that could instead be used to tackle poverty.

“For twenty years, Christian Aid has been campaigning for greater transparency in UK tax havens. In 2018, it was announced that the UK Government planned to publish full and transparent registers of who owns the businesses registered in these territories. “Meanwhile, developing countries continue to lose more money through the tax evasion practices of large corporations than they receive through official aid. In the world’s poorest countries, most people don’t earn enough to pay tax and governments don’t always have the capacity to systematically collect tax from those who do.

“That’s why it is so important that multinationals pay taxes in the countries where they make their money.”

Good Money Week

Good Money Week in the Church of Scotland in 2019 is from October 5 to 11 and is an annual reminder to think about how we invest and spend our hardearned money.

Many people have shares and investments but for many of us it’s just the bottom line that counts.

But should it be?

Aradhana Upadhyay is Director of the Church of North India Social Service Institute which works especially with women to alleviate poverty and develop communities.

“At present 50 Self Help groups are working well. The women have opened businesses and are confidently earning a livelihood. Some stitch garments, bags etc, which gives them good earnings.

“Women in India do not constitute one homogenous block. They are dispersed among various groups based on class, caste, religion and community. These sociopolitical barriers intervene with patriarchy to ensure gender-based discrimination, exploitation and oppression”, she said.

“Even within the social structure, women bear the brunt of prejudice and double discrimination by upper caste and upper classes. It is women who carry the intense burden of social, economic, political and cultural prejudice. A process that culminates into one long, relentless experience of oppression.

“In January 2016, CNI-SSI started the project the Integrated Socio-Economic Development For Women (ISEDW) supported by the St Colm’s Fund of the World Mission Council, Church of Scotland. The aim of the project was to increase contribution of appropriate financial services for the poor to poverty alleviation and community development.

“Women in Self Help Groups are given training in book keeping and account maintenance, awareness of gender justice and health issues, functional literacy, women’s rights and empowerment in the awareness programme. The women are trained in the formation of Community Based Organisation (CBO) and encouraged to take up issues affecting their lives. Cluster meetings become regular features. SHGs are a platform for the women coming from different faiths to discuss the issues affecting the society and their lives. They are encouraged to sell their products within their groups, other SHGs, their locality and also holding stalls at different places. The women gain confidence in public speaking.

“At present 50 Self Help Groups are working well. The women have opened businesses and are confidently earning a livelihood. Some stitch garments, bags etc, which gives them good earnings. During the project period of two years more and more information is given to women during their monthly meeting.

“The Bible teaches us to be strong and courageous to take up the challenges and also the success he gives to us. “Be strong and of a good courage, fear not, nor be afraid of them: for the LORD thy God, he [it is] that doth go with thee; he will not fail thee, nor forsake thee”. It is really amazing that the God of all creation has given us His word that we can look at and turn to every day.

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“So just do it! Give the 10% to God via your local church… Imagine the blessing that would be to the Church of Scotland? Tithing is a spiritual transaction that provides blessing.

“I am glad that our friends from Scotland have come forward to support CNISSI for making a difference in the lives of youth and women.”

Oikocredit, based in the Netherlands, is another organisation that exists to use our money to improve the lives of entrepreneurs in poorer countries who are working to improve their own lives and that of their family and communities. It’s heavily supported by churches and faith groups across the world.

Spokeswoman, Aline Uit den Boogaart said: “Over fifty years ago, church members discussed the creation of an ethical investment channel for churches and church organisations at a meeting of the World Council of Churches in Uppsala, Sweden. The idea of Oikocredit was born. Today, Oikocredit is not only an investment channel for churches and church organisations, but also for private investors.

“In all of these years the vision of Oikocredit remained unchanged: to develop a global, just society in which resources are shared sustainably and all people are empowered with the choices they need to create a life of dignity. Oikocredit has successfully demonstrated that improving the quality of life of low-income people and their communities in a sustainable way is possible – a notion that was doubted by many at the time of our founding in 1975.

“With the funds entrusted by members and investors, Oikocredit has made responsible investments in hundreds of partner organisations, ranging from institutions that provide access to finance to people that are left out of the regular financial system; to agricultural organisations that generate high economic and social impact for smallholder farmers; and renewable energy projects that bring energy access to remote areas across the globe.

“One such partner is Entrepreneurs Financial Centre (EFC) Zambia and they play an important role”, says Aline. “Oikocredit partnered with EFC in 2017 as its social mission aligns with that of our own.

“EFC’s mission is to have a positive impact on the development of Zambia but particularly support micro, small and medium sized enterprises (MSMEs) and the country’s low-income earners.

“They support people like Jessy Chipindo in Zambia who now owns her own restaurant.

“Jessy left school hoping to find work in the hospitality sector, and by 19 worked as a guest house manager. However, any plans of professional advancement were put on hold when her sister fell ill.

Jessy says: “I took care of her until she died and I am now taking care of her children. In 2011 I became a cashier in a casino; with the money I earned I started my own catering company in 2012”, Jessy explains.

Aline adds “Working from home until 2014 she decided to specialise in cakes. People loved her ‘Food from the Heart’ and by 2014 she had opened her own breakfast and lunch café.

“A business needs money to run, and financial help allowing Jessy to grow her catering business was to prove vital. Before joining EFC (like many small-scale entrepreneurs in Zambia) she struggled to get a loan from traditional banks.”

Jessy explains: “It is difficult for a small start-up to get a loan from a traditional bank. The loan I obtained from EFC enabled me to finish the renovation of my restaurant and buy more furniture.”

Aline explains: “A combination of timely financial support and very hard work has seen Jessy achieve her dreams of growing her business significantly. She now employs 32 people in the restaurant and even provides outside catering.”

Gary Brough is a Church of Scotland Mission Partner in Livingstonia Synod, Malawi. “Microfinance can also be a lifeline to survivors of gender based violence, who would otherwise be trapped in abusive relationships. Without access to or control of any material resources, women feel unable to leave the marital home, even if it means continuing to endure physical, emotional or sexual abuse.

“In Northern Malawi, women leave their family home and village and move to those of their husband when they marry. If abuse starts in the marriage, or from within the wider family they are often powerless to leave. When women do report violence, the cases are often abandoned because women are subject to the social pressure and financial control of their husband’s family.

“The Church and Society Programme’s legal team, led by Church of Scotland Mission Partner Dr Linus Malu, is improving access to justice by providing access to a microcredit programme for survivors of GBV.

“The programme is not simply about delivering and collecting loans. The women and girls form their own group, are given training in finance and business skills and the support they need to become self-reliant in the wake of personal tragedy. They are also educated in human rights, particularly their gender and economic rights, and form a support group for one another as they rebuild their lives together. These women are escaping life-threatening situations with just a few personal belongings, and often with the responsibility of caring for children who may themselves have been subjected to abuse. As such they cannot offer savings, or wait for the trust and financial capital of a self-help group to build.

“Small loans give women a fresh start at a life free from violence. They help them to start businesses, set up their own family homes, and give the freedom to make their own decisions. The financial security means they can continue with their cases in court and seek justice. As a result, ‘She is clothed with strength and dignity; she can laugh at the days to come.’”

Tithing

One method of voluntary ‘taxation’ is tithing.

The Rev Ann McCool is a great advocate of tithing – giving 10% of your income to the Church.

“Tithing is a spiritual exercise. It involves giving one tenth of all your money to God. Shocking! Surprising? Challenging! It’s all of these things, but don’t knock it till you’ve tried it. The very first time I heard of it I knew I was going to do it. Don’t ask me why, it just clicked, and I’ve been a convert ever since. It was easy. I just did it. And I feel blessed.

“The first time tithing is mentioned in the Bible is in Genesis when Abram gave a tenth of everything to a mystical priest called Melchizedek.

“With only 318 men, Abram has just defeated four kings with their armies, and also rescued his nephew, Lot. Clearly God was on Abram’s side, so a blessing should be given to God. He did this by giving Melchizedek a tenth of all he had. Tithing is a response of faith.

“Abram prospered when he started tithing. He had a deepening relationship with God which included a name change from Abram to Abraham. Among many other blessings, Abraham became the Father of Nations, and the Father of the Faithful. His son Isaac was also blessed when he tithed. After Isaac promised to give God a tenth, he met and married Rachel. He had great increases with his flocks, made up with his brother Esau, and even had his name changed to Israel as the father of the 12 tribes. Those who tithe are blessed financially, emotionally and practically.

“The tithe isn’t always given as money. ‘A tithe of everything from the land, whether grain from the soil or fruit from the trees, belongs to the Lord; it is holy to the Lord.’ (Leviticus 27:30-34) Tithing is a holy practice.

“And note, the tithe ‘belongs’ to the Lord. Through the prophet Malachi 3:6-10, God expresses his anger that his people were robbing him by not returning the tithes to the storehouse, which is God’s church.

“God says: ‘bring the whole tithe into the storehouse, that there may be food in my house.’

“In other words, God’s churches will lack nothing if God’s people would only tithe. And this is the only place in the whole Bible where God says: ‘Test me in this’. Here is a direct challenge from the Lord Almighty! He adds: ‘and see if I will not throw open the floodgates of heaven and pour out so much blessing that you will not have room enough for it.’

“That is God’s promise to his people, and to his Church. So just do it! Give the 10% to God via your local church, and you will find that the other 90% goes further. It’s a spiritual mystery that only works if you do it. Imagine the blessing that would be to the Church of Scotland? Tithing is a spiritual transaction that provides blessing.

“I have barely scratched the surface of this subject, but let me say that being precise about returning the tithe is not legalism; it’s obedience and faithfulness. We need to trust God and believe his promises, especially since tithing should be worked out before tax!”

The General Assembly of the Church of Scotland in 2004 called for ‘sacrifical giving’ in the interests of good stewardship and expressed appreciation of those who choose to tithe.

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