FYI a great outcome in Wikimedia Estonia's efforts to obtain tax-exempt status.


Begin forwarded message:

From: Raul Veede <raul.veede@gmail.com>
Subject: Re: [Internal-l] Fwd: ERR News (Estonian Public Broadcasting): Tax Board Backs Down in Wikipedia Exemption Case
Date: March 28, 2012 1:26:58 PM GMT+02:00
To: "Local Chapters, board and officers coordination (closed subscription)" <internal-l@lists.wikimedia.org>
Reply-To: "Local Chapters, board and officers coordination \(closed subscription\)" <internal-l@lists.wikimedia.org>

Actually, the original verb after my citation was "grumbled", but no news outlet has yet dared to publish that word.

Well, we basically intimidated our Tax Board, carrying our disupte into media on the very first day and bragging about support by WMF. Many thanks!

Indeed, this outcome was good for WMEE, but it would have been even better if we could have a clear decision from the court that could be used by other non-profits to claim tax exemptions. Theoretically, Estonian legal system does not depend on precedents, but practice is a little bit different. We hoped to be useful for the whole 3rd sector, but at least everyone knows now it pays to be bold.

Raul

On Wed, Mar 28, 2012 at 2:01 PM, David Gerard <dgerard@gmail.com> wrote:
---------- Forwarded message ----------
From: David Gerard <dgerard@gmail.com>
Date: 28 March 2012 12:01
Subject: ERR News (Estonian Public Broadcasting): Tax Board Backs Down
in Wikipedia Exemption Case
To: Communications Committee <wmfcc-l@lists.wikimedia.org>


Well done WMEE!

http://news.err.ee/culture/72556373-ba16-4ac5-82f3-b4a155a5a2a0

Tax Board Backs Down in Wikipedia Exemption Case
Steve Roman
Published: 13:27

picture: In Estonian, it's called 'Vikipeedia.'

The Tax and Customs Board decided on March 27 to grant Wikimedia
Eesti, the not-for-profit organization that runs the Estonian
Wikipedia, tax-exempt status, thereby averting a court hearing on the
issue that was to take place the same day.

The organization had taken legal action against the government because
of changed rules that deny it tax-exempt status as a non-governmental,
philanthropic organization.

"For Wikimedia Eesti, this is certainly happy news, but unfortunately
it doesn't especially help matters for other NGOs who could have used
our court precedent in the future," said Wikimedia board member Raul
Veede.

Veede noted that a broader goal of initiating the court case was to
draw attention to the Tax Board's narrow interpretation of what
comprises a charity organization which, he said, was leaving a number
of NGOs and volunteer groups subject to tax, uudised.err.ee reported.

He had earlier explained that, while the text of the law had remained
the same, a few years ago the Tax Board changed its interpretation of
what counts as a charity eligible for tax-exempt status.

Veede said that the new interpretation now rests on two conditions:
first, the charity must distribute material goods; and, second, it
must serve people who are disadvantaged as compared to the rest of
society. However, the Estonian-language website of Wikipedia, with its
mission of content creation and information dissemination, does not
meet these criteria.


- d.

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