New Zealand, Missionaries, and Inland Revenue

Effective January 1, 1991, the church equalized the cost of missionary service. Before, a missionary had to pay the actual costs of his or her mission.[fn1] Now, a missionary pays a set amount to the church, and the church pays the costs of missionaries’ missions irrespective of where they go.

Why did the church make this change? A bunch of reasons, I suspect, but one was because of the tax law. I’ve blogged about Davis v. United States before, and I have a chapter in my book that goes into extensive detail about both the litigation and the thinking behind the case. The short of it, though, is that the Supreme Court held that payments from parents to their missionary children did not qualify for the charitable deduction. Donations from parents to a church-controlled fund (at least, as long as those payments weren’t earmarked particularly for their children) did qualify.

Almost thirty years after the Supreme Court decided Davis, the question of the deductibility of missionary payments is back. Kind of. [Read more…]

Obligatory #TaxDay Post

Happy Tax Day![fn1]

Most years (and maybe every year) I do a tax post on Tax Day. I’ve been struggling to think of one the last couple days, though: there haven’t been a whole lot of Mormon tax (or even religious tax) developments over the last several months, and those few there have been[fn2] I’ve already posted on.

So I thought that I’d do something that isn’t really timely, but is interesting. See, as I was researching for my book,[fn3] I came across a Tax Court decision that dealt with the Church of Jesus Christ. I’m pretty sure, name notwithstanding, the Church of Jesus Christ is not part of the family of Mormon churches,[fn4] but its web presence is really, really limited, so most of what I know about it comes from the court’s opinion. Even if the Church of Jesus Christ isn’t a Mormon church, though, the case itself has to engage with Supreme Court tax precedent that is the result of the Mormon church. So here goes: [Read more…]