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Reply:
(b)
(c)
Mr President,
what specific criteria are adopted for determining whether a student organisation could be regarded as a charitable institution within the meaning of section 88 of the Inland Revenue Ordinance;
how the Government determines whether the activities organised by such student organisations for the promotion of civic education and awareness of current affairs and social issues are in contravention of the criteria referred to in (b) above?
The answer to the Honourable Member's three-part question is as follows:
(a)
(b)
(c)
There are three student organisations of the tertiary institutions which are recognised by the Inland Revenue Department as charitable organisations for tax exemption purpose.
In accordance with established tax principles, the Inland Revenue Department accepts "advancement of education" as a charitable purpose for granting tax exemption status under the Inland Revenue Ordinance.
Student organisations of the tertiary institutions are regarded as falling within the "advancement of education" category as their activities are an integral part of tertiary education in its wider sense.
For a charitable organisation to maintain its tax exempt status, it should only undertake activities which can reasonably be regarded as directed at achieving the charitable purpose for which it is established. Thus, to maintain its tax exempt status, a student organisation should only undertake activities which can reasonably be regarded as directed at achieving the purpose of "advancement of education".
Generally speaking, the organisation of activities for promoting civic education and social awareness amongst students can be regarded as for educational purposes. However, if these activities are organised for non- educational purposes, they would fall outside the criterion of "advancement of education" for the purpose of tax exemption.
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