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Asian Tribune is published by World Institute For Asian Studies|Powered by WIAS Vol. 12 No. 2401

Accountability and internal control a must for NGOs

[b]Accountability and internal control a must for NGOs[/b]

By Q Perera - Our Business Correspondent

Ernest & Young, Chartered Accountants, part of an International Accounting Firm has developed a 'Tool Kit' to help those organizations that provide humanitarian aid to Tsunami victims, to establish proper systems of accountability and internal control.

Adlair Goldberg, Ernst & Young, Jakarta, the author of the tool kit named as "EYe Tool Kit" explained the details of the tool kit at a brief seminar arranged in association with the Consortium for Humanitarian Agencies held at Ceylon Continental Hotel, last week.

Ms Lakmali Nanayakkara, Tax Partner, Ernst & Young Colombo explaining the nature of the NGO Tax Law said the law proposes that NGO's pay tax at 30 percent on a taxable income computed at 6 percent of grants and similar receipts and said that exemptions are considered by the Minister of Finance and the Commissioner General of Inland Revenue.

Ms Nanayakkara said that all NGOs other than those specifically excluded by CGIR or the Minister are liable to tax.

As defined in the amending law NGO means "Any organization or association formed by a group of persons on a voluntary basis which is non-governmental in nature dependant on grants, donations contributions or money received from any other means 'locally or from any foreign country or any foreign or local organization and established or constructed for the provision of relief and services of a humanitarian nature to the poor and destitute, to the sick, orphans and widows, youth and children and generally providing relief to the needy in times of disaster, which is determined by the Commissioner General to be a Non-Governmental Organization for the purpose of this section."

Ms Nanayakkara said that All NGOs other than those specifically excluded by the Commissioner General of Inland Revenue and the Minister of Finance are liable to this tax. She said that NGO means "any organization or association formed by a group of persons on a voluntary basis which is non-governmental in nature dependant on grants, donations locally or from any foreign country or any foreign or local organization and established or constituted for the provision of relief and services of a humanitarian nature to the poor and destitute, to the sick, orphans and widows, youth and children and generally providing relief to the needy in times of disaster, which is determined by the Commissioner General to be a Non-Governmental Organization for the purpose of this section."

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