Those responsible for Church finances across Portugal have met in Fátima to agree a response to the Tax Authority as a recent avalanche of property tax demands has led to disquiet and anger.
The Church is exempt from IMI property taxes under an agreement in 1940, updated in 2004, which states that property used for Church purposes does not have to pay Imposto Municipal sobre Imóveis (IMI).
Those responsible for the finances of diocese around the country are preparing a joint response to the Tax Authority as Finanças has been issuing tax demands for areas attached to Churches such as churchyards and gardens.
The head of the Diocese of Braga said that as of the end of last week he had received 26 demands from Finanças for areas that had been exempt for over 70 years.
The Church needs to show that buildings and outside areas are used for Church-related activities and therefore are exempt, as specified in Article 26 of the original Concordat between the Portuguese State and the Holy See.
The Tax Authority emphatically denies issuing new instructions to its Finaças offices to tax the Church on previously exempt property but something has changed as the number of new IMI notices has caused widespread concern for the Church across the country, especially in the north of Portugal.
See also: 'Churches incorrectly assessed for council tax - Finanças says 'pay up and argue later'
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