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Compensation given to churches should be taxed, Czech Communists say

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Prague, March 12 (CTK) – The financial compensation to the churches that replaces the property not released within the return of property project should be subjected to taxation under the proposal the deputies for Czech Communists (KSCM) have presented in the Chamber of Deputies.
In this way, the state could be receiving about 380 million crowns annually. In all, it may receive 11.5 billion crowns for the whole duration of the payment of the compensation.
The law on property settlement between the state and churches was passed in late 2012 and took effect in 2013.
Based on it, churches will be returned their former property confiscated by the communist regime, and given financial compensation for the property that cannot be returned.
The compensation will total 59 billion crowns plus inflation during 30 years. Most of the sum, 47.2 billion crowns, is to go to the Roman Catholic Church.
“The law on return of property to churches says that the churches receive property on the one hand and financial compensation for unreturned property on the other,” Communist deputy Vladimir Konicek has told CTK.
“We are proposing a change thanks to which the financial compensation will be taxed by the valid taxation rate,” he added.
The current income tax law says the financial compensation is not subjected to any tax.
The opposition conservative TOP 09 is absolutely against the proposal, chairman of the TOP 09 deputy group Frantisek Laudat said.
“The compensations are nothing but compensations for stolen property,” Laudat said.
The taxation might run counter to the constitution, he added.
Konicek said for Communists, the proposal was a chance for a debate on the course of the return of property to churches.
The Communist proposal will be at first dealt with by the government and then it will be passed to the lawmakers.
($1 = 24.398 crowns)

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