In some situations the church's ability to sell goods without imposing taxes is increasingly contentious. Other examples include renting space for parking, catering, and a range of fundraising and recreation or private educational activities. This situation tends to be an irritant to local businesses. Enforcement of the letter of the law is not aggressive in this area at this time. 1.4 Tax compliance What buyers and sellers must do is not always clear when it comes to a concrete transaction.
Tax avoidance is widespread.
On the other hand, so is automatic compliance at cash registers and at other points of sale. If a church registers in the GST system or as a vendor in a sales tax system, it must Keep records Provide reports, and Remit taxes These actions, in turn, increase the likelihood of enforcement audits or penalties for non-payment. Most churches simply do not get into the types or volumes of sales or services that would require them to register. Scrupulous attention to transaction taxes can be administratively cumbersome for everybody. They may rely on contractors to calculate applicable taxes and the appropriate tax relief when they bill the church for work done.