When the State makes a vow of poverty
While the Government is preparing to pass a law on the secularism of the State, a new tally allows to measure the magnitude of the earners and stumps granted in Quebec by different levels of Government to religions and religious organizations.
The benefits are hundreds of millions of dollars every year in Quebec alone and billions for all of Canada. Support takes the form of taxes and uncollected taxes, tax deductions for donations, but also reimbursement of sales taxes or direct subsidies,
for example for the maintenance of buildings or for denominational schools.
The proposal for a Quebec law on secularism does not address the issue of tax benefits to religions.
Bill 21 focuses on the prohibition of religious signs for government officials.
"Is it legitimate, in a liberal democracy, and in the light of the principle of State neutrality in matters of religion, that the State finances religious organizations, or religion, more globally?", asks the tax law professor Luc Grenon, from the Université de Sherbrooke, a rare specialist in the problem. "This question is necessary beyond all the benefits some attribute to it. Religion remains, in its essence,
a question of doctrine based on unknowable personal beliefs.
1.56 billion
This is the Federal Government's shortfall in 2007 due to the particular tax status of religion, as calculated by Luc Grenon, Professor of tax law. The sum does not take into account the tax losses of the provinces and municipalities.
The issue was addressed during the past year and a half in Canada by the Special Committee of the Senate on the charitable sector. More than 150 witnesses have been heard since January 2018 and about 80 submissions have been filed.
More than 700 organizations have responded to online questionnaires.
"The world has changed, but this [charitable] sector continues to be governed by a regulatory and legal regime that is completely outdated," said Ontario Senator Ratna Omidvar, Vice-Chair of the Committee, who will report at the end of June.
"The modernization of this regime is important to ensure the strength and prosperity of this sector."
charity
One of the keystone of the tax support architecture is concentrated in the status of registered charity (OBE).
The Canada Revenue Agency (CRA) provides valuable recognition.
The status allows to be exempt from tax, to issue receipts for charitable donations (to individuals or companies)
and to be reimbursed a portion of the consumer taxes (QST and GST).
The Federal Agency cites four charitable purposes: relief to poverty; the advancement of education the advancement of religion; and "any other beneficial purpose for the community," such as research or environmental protection. In Canada and Quebec, the State supports organizations whose primary purpose, and often the only reason for being, is to work towards "advancing religion."
In total, as at the end of may 2019, the CRA Data Bank gathers 32 782 OBE in Canada and 4330 in Quebec in this proselyte category. In Quebec, Christianity won the lion's share with 3045 records followed by Judaism (123) and Islam (50).
The cost of the measure is estimated at 3.1 billion in 2019 for the entire charitable sector (not just the religious sector) by the Department of Finance Canada, according to a presentation made last month before a Senate Committee studying the charitable sector in the country. Professor Grenon calculated that in 2007, part of the tax expenditure for religion in particular amounted to only 1.56 billion, 000 for the Federal Government.
In 2013, 49% of donations made by Canadians aged 65 years and over were granted to religious organizations;
This proportion was 38% for the under 65 years.
The Basilica of Sainte-Anne-de-Beaupré near Quebec City is registered as a charitable organization because the pilgrimage site works to advance religion. He does not declare any charitable activity, or offer any help to alleviate poverty, for example.
This OBE accumulated almost 13 million of revenue in 2017, of which 1.2 million in donations with charitable receipts and 8.2 million in other donations, but without receipts for tax deductions. In this case, these are mainly earnings generated by collections
from groups of visitors who do not request receipts in return.
"I don't necessarily bring help for food," says Father Pierre Bélisle, administrator of the Basilica. I am more at a level of accompaniment, comfort, closeness, listening, etc. People come to collect and recharge their batteries at the sanctuary. [...] It is recognized by the State. But remove the sanctuary and people will pass on the 138 without stopping. There are benefits for everyone, with visitors from all over the world. »
The provincial has no leadership on this issue: he is following the Federal Government. "The OBE whose registration is granted by the CRA are deemed to be registered with Revenu Québec, without any formalities to fulfill," explains by e-mail Geneviève Laurier, head of the public relations team of Revenu Québec. Since Quebec's tax legislation is harmonized with that of the Federal Government in the OBE sector, entities that meet the criteria to qualify as OBE have the same tax treatment to the Federal and Quebec. »
Taxes
In Quebec, according to the most recent estimate available, the amounts of municipal and school taxes not collected amounted to 182.3 million, i.e. 20.1 million for school taxes and 162.2 million for municipal taxes, disclosed to duty on Department of Municipal Affairs and housing.
Section 204 of the municipal taxation Act provides for the exemption from any property tax of buildings in the category of places of worship, presbyteries and properties of religious institutions used for religious or charitable activities. Municipalities may,
however, require compensation for services rendered (e.g. waste collection).
"Secularism has not yet arrived in the field of municipal taxation," says Professor Danielle Pilette of UQAM, specializing in municipal taxation and management. We find ourselves with a situation where we talk about secularism, but where we continue to give a special regime without compensation for religious communities. If the Government of Quebec is consistent in advocating secularism, why it is not the one that grants the exemption — which might lead to a more restrictive status — but also compensation to municipalities, as is already done schools, colleges, universities and health facilities. »
Montreal
In itself, the city of Montreal currently exempts 737 buildings in the category of places of worship and 272 buildings belonging to religious communities in its territory. This number remains "fairly stable", says the municipality.
The total land value of these exempt properties (at least in part) is more than 2.2 billion million on a total role of 280 billion,
representing 0.8% of the total value of registered properties.
The city refuses to calculate the amount of the taxes not collected, "because these buildings are precisely exempt from municipal or land taxes under the law," says a written reply provided by the communication officer Gonzalo Nunez.
An assessment of the exemptions for the entire island of Montreal was presented at a symposium of the Quebec secular movement last year. In October 2017, according to these calculations which necessitated more than two years of patient work, the value of the places of worship was 3.1 billion on the entire island of Montreal. The shortfall in municipal and school taxes then exceeded the 110 million million.
"For now, we cannot Blinder the numbers," says tax law professor Luc Grenon. Whether it's 600 million or 1.4 billion for Montreal, at the end of the day, it's a lot of money. The figure gives an idea of the relevance of the problem. The numbers can help build a concern in the minds of people, making them question each other. But the exact amount, for me, since we are only able to make estimates, this is not the gist. »
Marlene Cordato, Mayor of Boisbriand — a municipality in conflict with a Hassidic Jewish community established on its territory regarding the payment of municipal taxes — believes that Quebec should re-evaluate these exemptions "to the flavor of 2019". "We must take into account the financial stakes of the religious communities, but also those of the municipalities (which are financed only through the property tax). Because currently,
the Bill is simply distributed more significantly to other tax payers. »
With the end of the study of Bill 21 on the secularism of the State, Le Devoir took the opportunity to take stock of the tax benefits granted to religions.
This series continues tomorrow and Saturday.
The benefits are hundreds of millions of dollars every year in Quebec alone and billions for all of Canada. Support takes the form of taxes and uncollected taxes, tax deductions for donations, but also reimbursement of sales taxes or direct subsidies,
for example for the maintenance of buildings or for denominational schools.
The proposal for a Quebec law on secularism does not address the issue of tax benefits to religions.
Bill 21 focuses on the prohibition of religious signs for government officials.
"Is it legitimate, in a liberal democracy, and in the light of the principle of State neutrality in matters of religion, that the State finances religious organizations, or religion, more globally?", asks the tax law professor Luc Grenon, from the Université de Sherbrooke, a rare specialist in the problem. "This question is necessary beyond all the benefits some attribute to it. Religion remains, in its essence,
a question of doctrine based on unknowable personal beliefs.
1.56 billion
This is the Federal Government's shortfall in 2007 due to the particular tax status of religion, as calculated by Luc Grenon, Professor of tax law. The sum does not take into account the tax losses of the provinces and municipalities.
The issue was addressed during the past year and a half in Canada by the Special Committee of the Senate on the charitable sector. More than 150 witnesses have been heard since January 2018 and about 80 submissions have been filed.
More than 700 organizations have responded to online questionnaires.
"The world has changed, but this [charitable] sector continues to be governed by a regulatory and legal regime that is completely outdated," said Ontario Senator Ratna Omidvar, Vice-Chair of the Committee, who will report at the end of June.
"The modernization of this regime is important to ensure the strength and prosperity of this sector."
charity
One of the keystone of the tax support architecture is concentrated in the status of registered charity (OBE).
The Canada Revenue Agency (CRA) provides valuable recognition.
The status allows to be exempt from tax, to issue receipts for charitable donations (to individuals or companies)
and to be reimbursed a portion of the consumer taxes (QST and GST).
The Federal Agency cites four charitable purposes: relief to poverty; the advancement of education the advancement of religion; and "any other beneficial purpose for the community," such as research or environmental protection. In Canada and Quebec, the State supports organizations whose primary purpose, and often the only reason for being, is to work towards "advancing religion."
In total, as at the end of may 2019, the CRA Data Bank gathers 32 782 OBE in Canada and 4330 in Quebec in this proselyte category. In Quebec, Christianity won the lion's share with 3045 records followed by Judaism (123) and Islam (50).
The cost of the measure is estimated at 3.1 billion in 2019 for the entire charitable sector (not just the religious sector) by the Department of Finance Canada, according to a presentation made last month before a Senate Committee studying the charitable sector in the country. Professor Grenon calculated that in 2007, part of the tax expenditure for religion in particular amounted to only 1.56 billion, 000 for the Federal Government.
In 2013, 49% of donations made by Canadians aged 65 years and over were granted to religious organizations;
This proportion was 38% for the under 65 years.
The Basilica of Sainte-Anne-de-Beaupré near Quebec City is registered as a charitable organization because the pilgrimage site works to advance religion. He does not declare any charitable activity, or offer any help to alleviate poverty, for example.
This OBE accumulated almost 13 million of revenue in 2017, of which 1.2 million in donations with charitable receipts and 8.2 million in other donations, but without receipts for tax deductions. In this case, these are mainly earnings generated by collections
from groups of visitors who do not request receipts in return.
"I don't necessarily bring help for food," says Father Pierre Bélisle, administrator of the Basilica. I am more at a level of accompaniment, comfort, closeness, listening, etc. People come to collect and recharge their batteries at the sanctuary. [...] It is recognized by the State. But remove the sanctuary and people will pass on the 138 without stopping. There are benefits for everyone, with visitors from all over the world. »
The provincial has no leadership on this issue: he is following the Federal Government. "The OBE whose registration is granted by the CRA are deemed to be registered with Revenu Québec, without any formalities to fulfill," explains by e-mail Geneviève Laurier, head of the public relations team of Revenu Québec. Since Quebec's tax legislation is harmonized with that of the Federal Government in the OBE sector, entities that meet the criteria to qualify as OBE have the same tax treatment to the Federal and Quebec. »
Taxes
In Quebec, according to the most recent estimate available, the amounts of municipal and school taxes not collected amounted to 182.3 million, i.e. 20.1 million for school taxes and 162.2 million for municipal taxes, disclosed to duty on Department of Municipal Affairs and housing.
Section 204 of the municipal taxation Act provides for the exemption from any property tax of buildings in the category of places of worship, presbyteries and properties of religious institutions used for religious or charitable activities. Municipalities may,
however, require compensation for services rendered (e.g. waste collection).
"Secularism has not yet arrived in the field of municipal taxation," says Professor Danielle Pilette of UQAM, specializing in municipal taxation and management. We find ourselves with a situation where we talk about secularism, but where we continue to give a special regime without compensation for religious communities. If the Government of Quebec is consistent in advocating secularism, why it is not the one that grants the exemption — which might lead to a more restrictive status — but also compensation to municipalities, as is already done schools, colleges, universities and health facilities. »
Montreal
In itself, the city of Montreal currently exempts 737 buildings in the category of places of worship and 272 buildings belonging to religious communities in its territory. This number remains "fairly stable", says the municipality.
The total land value of these exempt properties (at least in part) is more than 2.2 billion million on a total role of 280 billion,
representing 0.8% of the total value of registered properties.
The city refuses to calculate the amount of the taxes not collected, "because these buildings are precisely exempt from municipal or land taxes under the law," says a written reply provided by the communication officer Gonzalo Nunez.
An assessment of the exemptions for the entire island of Montreal was presented at a symposium of the Quebec secular movement last year. In October 2017, according to these calculations which necessitated more than two years of patient work, the value of the places of worship was 3.1 billion on the entire island of Montreal. The shortfall in municipal and school taxes then exceeded the 110 million million.
"For now, we cannot Blinder the numbers," says tax law professor Luc Grenon. Whether it's 600 million or 1.4 billion for Montreal, at the end of the day, it's a lot of money. The figure gives an idea of the relevance of the problem. The numbers can help build a concern in the minds of people, making them question each other. But the exact amount, for me, since we are only able to make estimates, this is not the gist. »
Marlene Cordato, Mayor of Boisbriand — a municipality in conflict with a Hassidic Jewish community established on its territory regarding the payment of municipal taxes — believes that Quebec should re-evaluate these exemptions "to the flavor of 2019". "We must take into account the financial stakes of the religious communities, but also those of the municipalities (which are financed only through the property tax). Because currently,
the Bill is simply distributed more significantly to other tax payers. »
With the end of the study of Bill 21 on the secularism of the State, Le Devoir took the opportunity to take stock of the tax benefits granted to religions.
This series continues tomorrow and Saturday.