I'm involved with a voluntary unincorporated organisation and am concerned about our tax compliance position.
By retaining a small amount of income each year we have built up a reserve / sink-fund to cover unanticipated expenses and / or operating costs during lean years. We view ourselves as non-profit. However projected reserves at this year-end are potentially a low five figure sum.
Could we have a tax liability here? If so what tax rates would apply? How do other organisations, e.g. sports clubs handle this?
We are planning to get professional advice on this but I wanted to get some thoughts. We have a tax clearance certificate as this was required to avail of certain government grants, so we are on the Revenue's radar.
MugsGame
By retaining a small amount of income each year we have built up a reserve / sink-fund to cover unanticipated expenses and / or operating costs during lean years. We view ourselves as non-profit. However projected reserves at this year-end are potentially a low five figure sum.
Could we have a tax liability here? If so what tax rates would apply? How do other organisations, e.g. sports clubs handle this?
We are planning to get professional advice on this but I wanted to get some thoughts. We have a tax clearance certificate as this was required to avail of certain government grants, so we are on the Revenue's radar.
MugsGame
