Thursday, April 12, 2012

U.K. Officials' Comments Add Fire to Fight Over Tax Cap for Charity ...

British charities and philanthropists responded angrily Tuesday to government suggestions that some of the country?s wealthy use charity donations to reduce their tax burden, The Independent and the BBC report.

The row erupted after Chancellor George Osborne told the Daily Telegraph newspaper he was ?shocked? by the findings of a study by the British revenue office, which said that giving to charity was one of the three most-used loopholes by U.K. taxpayers. A government spokesman said Tuesday that some donors give to groups that ?don?t, in all cases, do a great deal of charitable work.?

The comments added fuel to mounting protests over the government?s new budget plan, which would cap the amount high earners can claim in tax relief. ?To look at philanthropists as if they were just being tax avoiders is really rather disgusting,? said Stephanie Shirley, a philanthropist who led the previous British government?s efforts to promote giving.

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