Full Length Research Paper

Taxation of pentecostal churches in Africa: paradigm of pentecostals in Uganda

Biobele Richards Briggs

Islamic University in Uganda (IUIU), Kampala Campus.

E-mail rwbiobriggs@yahoo.com

Accepted 21, January 2008

   Abstract

The study sought to determine if Pentecostals in Uganda were qualified to maintain their status quo as tax exempt organizations considering their vast financial resources. The study also investigated the impact of such exempt status on the principle of equality. Purposive sampling technique was used to draw a sample of 250 and they were categorized into membership structure in four districts (Kampala, Kira, Luwero and Mukono). Descriptive survey design was employed for the study. Also, descriptive and inferential analyses were used. The findings revealed two distinct opinions with regard to taxation of Pentecostals. First, the Pentecostal members indicated that Pentecostals should not be taxed. Second, non-members of Pentecostals opined that they should be taxed. With regard to the principle of equity, the findings also identified two different considerations. First, maintaining the status quo of Pentecostals tax wise was considered as tax inequality between Pentecostals and business organizations in the country. Second, taxation of Pentecostals without taxation of other faith based institutions in the country was also considered as tax inequality. Recommendations were made that the revenue authority should screen all environmental variables in their tax planning process before the derivation of tax policy with regard to taxation of Pentecostals in the country. Also, numbers of other recommendations have been made based on the findings.

Key words:  Business, pentecostals, public character, taxation, tax equality.