Could The VATICAN Owe 8 Billion Euros in Back Taxes?

Apparently, eight billion euros worth of tax breaks enjoyed by the Catholic Church in Italy could be in breach of European law and may have to be repaid, according to the article below. The question is whether the European Commission decides Church-run businesses should really be considered as commercial enterprises. I have to assume that if that's the case, there must be lots of other religious institutions in the same boat.
    . . . June
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Vatican May Owe €8 Billion in Back Taxes
Free Market Mojo:

Eight billion euros worth of tax breaks pocketed by the Catholic Church in Italy could be in breach of European law and may have to be repaid, it has emerged.

The European Commission has said that tax relief on 100,000 Italian properties enjoyed by the Holy See since 2005 was under the spotlight, after announcing an “in-depth” investigation.

A spokesperson for Competition Commissioner Joaquin Almunia said the EC suspected the exemption amounted to state aid that was at odds with European Union law.

“These exemptions may distort competition,” he said. “Thus far, Italian authorities have not provided sufficient evidence to enable the Commission to conclude that the contested measures are justified by the principles of the Italian tax system”.

The crux is whether the EC decides Church-run businesses should really be considered as commercial enterprises and therefore liable to taxation.

If Italy is found to have violated EU subsidy laws, it will have to cancel the exemption and seek reimbursement from the church. If that happened, the financial consequences for the Catholic Church would be grave.

Read entire article


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