Accounting

This article takes into view denominational agencies which are tax-exempt that publish religious books which lead to substantial profit. The question that the article carefully articulates is whether the denomination should use these earnings to further its religious purposes or it should be held liable to pay the federal unrelated business income tax for these earnings.

In my opinion, whether the earned income is above or below 1000 dollars, related or unrelated to the religious purpose, it should pay the due income tax. Although denomination agencies, are working for a social and religion reason but if they are involved in any commercial trade or business, they should pay like any other corporation. For instance, thousands of large and small companies are involved in social causes and corporate social responsibility. This, by no means, lessens their burden of taxes.

On the other hands, schools and colleges, disseminate information, play an integral role in bringing up generations and prepare them for the future. However, with this great cause in mind, many of these schools and colleges make substantial profits. Does this mean, they should not pay taxes at all

Before the unrelated business income tax law, many people were taking advantage of the governments stance by making large profits with their businesses without paying taxes and covering up their trade with a charitable purpose. Many of these denomination agencies making huge profits with their publishing pose unfair competition to the publishing companies which are paying their due share of profits.In addition, many denomination agencies may claim that they are not profitable. Whereas, they could very well be under reporting their profits.

Therefore, unrelated business income tax is in the favour of the general public and the government as well.