The Crowdfunding campaign for 19-month old Kris, who suffers from type 1 spinal muscular atrophy was more than successful. However, after raising an unbelievable €3.8 million, the Palčica pomagalčica Charity and Kris’ parents are now facing a €1.9 million tax bill. Although Delo claims that tax could be avoided, the Charity has not yet confirmed what action it will take to achieve this.
According to Slovenian tax legislation, the money raised is treated as income, since Palčica pomagalčica has not yet been granted status of a charity organisation. The society was only registered in July this year, but to apply for charity status a full-year activity report needs to be submitted.
This is why Palčica pomagalčica is not exempt from the 25% income tax (about €950.000), and neither are Kris' parents, who would then have to pay the remaining tax, which would, according to Delo, amount to €940.000.
The Slovenian public reacted furiously to the news, noting that it was the state who should have covered Kris' expensive treatment in the first place, and complaining that it is now trying to take away what people raised themselves.
Delo claims to have found a solution to avoid the high tax, though. According to the paper, Palčica pomagalčica needs to transfer the money to a certified charity, which could then transfer money, tax free, to Kris' parents.
How the problem will eventually be solved is not clear yet. Palčica pomagalčica has forwarded the problem to the Centre of Non-Government Organisations, where they will discuss the possible solutions at the beginning of next week.
Meanwhile, Prime Minister Marjan Šarec responded on his Facebook account that it is in nobody's interest for this tax to be collected, and that while various answers are being examined the public should keep calm.
