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Religious groups’ commercial deals and tax question

Posted on 11 Mar 2010 | Comments Off

I REFER to Sunday’s report, ‘City Harvest paying $310m to become Suntec co-owner’.

While it is City Harvest Church’s right to decide how it spends its money, there are related issues which the Government should address.

Religious organisations are registered charities. Therefore, contributions and income are non-taxable.

However, with more and more religious organisations venturing into business and owning commercial properties, is their tax-exempt status still relevant?

Should the Government continue to let religious organisations own commercial properties and earn income from rent? After all, the revenue these organisations use for the purchase is tax-exempt in the first place.

Suntec City was developed for commercial purposes. With the church’s purchase of the development and its proposal to convert a section of the exhibition space for church use, is it in breach of the Urban Redevelopment Authority’s land-use policy?

For years, New Creation Church has rented space in Suntec for church services on a commercial basis. However, now that City Harvest owns the space, and wants to convert some part of it into the church’s auditorium, is it legal?

Besides Suntec, this issue is also a concern with the new civic and cultural centre at one-north, which is co-owned by New Creation Church.

Land sales for religious purposes by the Government are on a 30-year lease. With some religious organisations acquiring land earmarked for other uses, with much longer leases, and using it for their religious purposes, is it fair to other religious organisations which must tender for 30-year lease land?

Religious organisations obtain their funding from their congregations. However, some religious organisations, such as New Creation, and now City Harvest, own commercial properties which generate income for them.

Lester Lam

Source : Straits Times – 11 Mar 2010

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Posted in Office / Retail / Industrial

Tagged City Harvest Church, Commercial Property, New Creation Church

Govt agencies to move to alternative city centres

Posted on 10 Mar 2010 | Comments Off

IT IS full steam ahead for Singapore’s new growth areas such as Jurong and Paya Lebar as the Government ramps up plans to develop the Republic’s alternative city centres.

National Development Minister Mah Bow Tan yesterday said several government agencies, including the Ministry of National Development (MND) and some of its statutory boards, will relocate to Jurong Gateway by 2015.

The development of new growth areas such as Jurong Gateway, Paya Lebar Central and Kallang Riverside was first announced in the Urban Redevelopment Authority’s (URA) draft Masterplan 2008.

‘Despite the downturn, we pressed on with infrastructure works and more sites at these areas will be progressively released for development from this year onwards,’ said Mr Mah in Parliament.

‘Together with Grade A office space in the CBD, they will offer commercial firms more choices in business locations,’ he said.

The Agri-Food and Veterinary Authority, the Building and Construction Authority – along with the Ministry of the Environment and Water Resources and its statutory boards – are planning to move to Jurong by 2015, said Mr Mah.

The Singapore Workforce Development Agency will move to Paya Lebar Central, while its new Continuing Education and Training Campus, due for completion by 2013, will also be located there.

Mr Mah said the relocations will free up prime office space in the city to meet private sector demand: ‘By 2015, the current supply of about one million sq m of office space in the pipeline should have been taken up. The relocation… will help to free up more space for the private sector.’

Responding to questions raised by MPs such as Mr Teo Ser Luck (Pasir Ris-Punggol GRC) and Ms Jessica Tan (East Coast GRC) on land constraints on growth, Mr Mah said MND and URA have embarked on the Concept Plan 2011 which will chart Singapore’s land use strategies over the next 40 to 50 years.

‘Under the review, we will develop strategies to increase land productivity to support future growth,’ he said.

Mr Mah also noted that as a key city in growing Asia, Singapore will naturally see foreign interest in private residential properties here. But he said Singapore residents still account for nearly 90 per cent of all private housing transactions last year.

He was responding to Mr Liang Eng Hwa (Holland-Bukit Timah GRC), who asked about foreign buyers and steps to pre-empt a collective sale fever.

Mr Mah said the Ministry of Law has been reviewing existing en-bloc sale regulations, and has been taking feedback and suggestions from members of the public. Any changes to collective sale rules will be announced by the ministry in due course.

Source : Straits Times – 9 Mar 2010