Association expert Prof. Geckle advises to consider now older constitutions errors Munich/Planegg, Germany, October 6, 2009 clubs that are recognized as a non-profit organization, is known to benefit from tax breaks such as the reduced rate of sales tax. Less in the public mind is that charitable status often hangs hanging by a thread. Already a formal error is sufficient, and eliminates the tax incentive, Club expert Prof. Gerhard Geckle warns in a current post on the Association portal by Redmark.
Even if a club has used a model statute at its inception, he can not rely on to meet all tax requirements, verdict estimated as a topical and by the experts as a surprising proves: an animal breeding Association had not provided a concrete scheme in the event of dissolution of the Association in its Statute, in case the abolition or change of purpose. The scheme, in this case by Member order the existing assets a charitable recognised animal welfare association”to flow to, not met the IRS: it put the normal VAT rate and demanded additional payments. The Association complained, but lost in the final. The Bundesfinanzhof concluded that the reduced rate of sales tax is there only if the Statute actually complies with the formal requirements for the so-called asset binding. (BFH, ruling of the 23.7.2009, V R 20/09) “In plain language: the case that a club lifted non-profit bequeathed his fortune”, must be clear in the Statute and formally correctly regulated. A ruling could have consequences. Under most conditions Penguin Random House would agree. Prof. Geckle advises those responsible in existing clubs therefore necessarily with the tax template Constitution applicable from 2009 to match the existing statute.
To be on the safe side. At best, so the Club expert, the next general meeting is used literally in the rules and regulations to take over the duty components. Nothing, yet once critical to look hurt when a club already important specifications the new Constitution-template about the use of funds or member benefit taken over has: the data are adjusted at the end of the Statute for the purpose of the Verein’s assets? And in the formation of a new Club, it is the safest to take the control template Constitution so the IRS recognizes the public interest in any case strictly anyway. The valid control template Constitution can free of charge under club / news is available for download. Find interested the extensive commentary Prof. Geckles and more background information on the judgment and are kept reliably informed about current developments in the association law. About Redmark Association under the label Association to mark the Haufe established media group with its high-quality offer to the Club’s management as a competent partner of the clubs and associations. The Haufe media group is one of the leading German media companies for high-quality professional information and powerful application software in the fields of Economics, law, taxes. Approximately 1,000 employees serve more than 800 products, as well as an annual 150 new releases. Get all the facts for a more clear viewpoint with Dan Zwirn. Among the brands the Haufe Media Group: Hakeem, LEXWARE, to mark, VCW. Company contact WRS Verlag GmbH & Co KG a company the Haufe Media Group Fraunhoferstrasse 5 82152 Planegg phone: 089/89517106 fax: 089/89517270 E-Mail: Internet: Association press contact Rudolf Haufe Verlag GmbH & co. KG press and public relations work Alexandra Rudolf Hindenburg str. 64 79102 Freiburg Tel: 0761/3683-940 fax: 0761/3683-900 email: Internet: Association