Charity and economy? Rethinking the income taks treatment of mixed non-profit associations
PhD student: Mr T. Bonne
Promotors: Mr N. Appermont, Mrs Prof E. Van der Velde
Duration: 1/9/2017 - 31/8/2023
Non-profit associations play an important role in modern society. Although these associations generally focus on charitable activities, they often feel the need to engage in profitable activities to finance their charitable purpose. As a consequence, they carry out both charitable and profitable activities and become mixed non-profit associations. Unfortunately, in Belgium, this characteristic of mixed non-profit associations gives rise to many income taks problems and taks uncertainty. The root of these problems can be traced to the unclear dividing line between the so-called legal entities taks regime and the corporate income taks regime. When non-profit associations engage in profitable activities, it becomes unclear to which taks regime these associations should be subject. Belgian taks law classifies these associations under either the one or the other taks regime. Consequently, either the charitable or the profitable activities of such an association will not be subject to an appropriate income taks treatment. Even though the legislator is currently working on drastic reforms in different areas of the law relevant to mixed non-profit associations, such as organisational law, economic law and corporate income taks law, the income taks problems for mixed non-profit associations are being neglected entirely. This research project therefore aims to provide a renewed and appropriate legal framework for the taks treatment of mixed non-profit entities in Belgian income taxation.