Deductibility of donations: protest against reform

According to the warning, this could be withdrawn from organizations if civil society protests result in administrative penalties. With the current version, late registration of rallies or the attachment of banners to buildings could lead to a denial, said Greenpeace managing director Alexander Egit.

“Anti-democratic passages”

In addition to Greenpeace, Volkshilfe, the Association Against Animal Factories (VGT), Attac and Fridays For Future also campaigned for a short-term change to the draft before parliament. In the future, tax officials could withdraw the tax deductibility of donations from clubs and organizations without legal proceedings with a suspensive effect; the activists see “arbitrariness” and possible losses that threaten their existence.

Egit would like the “anti-democratic passages” to be deleted. If that is not possible, constitutional conformity should be ensured and arbitrariness by tax officials should be prevented, he said. At least there is a need for clear provisions in which cases tax officials can take action and when deductibility of donations can be issued.

Constitutional lawyers warned

Constitutional lawyer Heinz Mayer had previously warned of unconstitutionality because, according to the draft, a suspensive effect of legal remedies against a decision by the tax office was excluded. However, the Constitutional Court has already made it clear several times that legal regulations should not result in final or even existential burdens.

The concerns raised by Mayer regarding the suspensive effect should be examined by the final decision next week in the National Council, the Ministry of Finance emphasized upon request. “But it is clear that the possibility of removal can only exist when it comes to organizations that operate within the framework of the democratic constitutional state.” It was emphasized that the government is very keen to support civil society engagement. “Therefore, the possibility of tax deductibility of donations is being massively expanded – this is also welcomed by the vast majority of organizations.”#

“Civil disobedience actions” planned

Volkshilfe press spokesman Erwin Berger also criticized the fact that tax officials would not have to decide based on comprehensible criteria if donations were to be withdrawn from tax deductibility. In a more repressive political climate, this would provide a tool “to exert pressure.” After all, civil society protests cannot always go completely unpunished. Isabell Eckl from VGT sees it similarly. For example, the early ban on fur farms in Austria was only possible because of the protests of animal rights activists, “partly through actions of civil disobedience,” she explained in a statement.

However, the penalty provision is “harmless” for the environmental organization alliance Ökobüro. The provisions regarding the loss of deductibility for criminal acts are “unnecessary,” according to a statement on its website. However, this essentially regulates what is already legal. Non-profit status can already be revoked if significant funds are used for non-profit purposes. It is made clear that significant resources must be used to pay fines in order for revocation to occur. However, administrative penalties are generally low. However, according to the Ökobüro, a deferring effect in the event of revocation would be an improvement.

In principle, the Ökobüro welcomes the package, saying it will strengthen the civil society sector. Not all parts of the legal reform should be rejected by the participants in the protest, as Berger, for example, saw the expanded tax deductibility of donations as positive. This is generally linked to the non-profit status of the organizations, which makes 45,000 additional clubs potential beneficiaries.

Video: The government has defended the reform

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