Saturday, September 11, 2004

Natalia Bourjaily & David Moore have published Proposed Russian Tax Code Amendments: Benefit or Burden? in the International Journal of Not-for-Profit Law. Here is part of the Conclusion:

ICNL has serious concerns about the proposed tax changes. The amendments threaten to overwhelm the awarding of tax-exempt grants with burdensome procedural requirements. Moreover, to impose such burdens (especially in the absence of corresponding tax incentives) runs counter to international best practices. No European country prevents foreign citizens from providing grant support for public benefit or charitable causes. No European country requires foreign organizations and domestic NCOs to seek inclusion on a government-approved list of grant makers in order to give tax-exempt grants. And no European country requires foreign and domestic donors to “register” each and every grant with the government. Surveying the NIS region reveals that only Kazakhstan requires foreign grant makers to be included on a government-approved list of grant makers. Even Kazakhstan, however, does not require local donors to seek inclusion on this list. Kazakhstan also does not require foreign and domestic donors to submit to a grant registration process for every single grant extended. The proposed Russian framework for grant giving is truly unique in the region.