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1. She didn’t make a donation, she paid for services supplied; was VAT charged?
2. How much was the said donation? Was it market price?
3. Who else has been getting services supplied by this charity in exchange for a donation? Charities should not trade, they should set up operating companies and own the shares in the companies. The companies should register for taxes and the all the other requirements of a trading company.
4. How long has this been going on? It seems the opposite of a charitable purpose, the prisoners are being used to generate revenue for the charity.
5. It strikes me that the Charity Commission needs to have a word with this charity. If this is widespread where friendly contacts of the charity are benefitting this HRMC also need to have a look; HRMC are very sensitive to charities being used as a way of avoiding tax and benefitting private individuals.
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