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Private schools contest 'vague' charity rules | Private schools contest 'vague' charity rules |
(3 days later) | |
The independent schools sector has accused the Charity Commission of introducing "vague, uncertain, legally flawed" new rules on charitable status. | The independent schools sector has accused the Charity Commission of introducing "vague, uncertain, legally flawed" new rules on charitable status. |
The commission brought in a new public benefit guidance test to assess whether schools are sufficiently charitable and adequately help the less well-off. | The commission brought in a new public benefit guidance test to assess whether schools are sufficiently charitable and adequately help the less well-off. |
The 2006 Charities Act means they no longer have automatic charitable status and must prove their benefit. | The 2006 Charities Act means they no longer have automatic charitable status and must prove their benefit. |
The Independent Schools Council (ISC) is challenging the law at a tribunal. | The Independent Schools Council (ISC) is challenging the law at a tribunal. |
Charitable status brings tax benefits to independent schools believed to be worth more than £100m a year. Since April 2008 they have had to prove that they provide a public benefit in exchange foe that tax-fre status. | |
But independent schools say that they are offering means-tested bursaries worth over £200m a year. | But independent schools say that they are offering means-tested bursaries worth over £200m a year. |
'Vague and uncertain' | 'Vague and uncertain' |
The ISC was successful in its bid for a judicial review last year and the Charities Tribunal hearing - taking place at the Upper Tribunal at London's High Court - is expected to last more than a week. | The ISC was successful in its bid for a judicial review last year and the Charities Tribunal hearing - taking place at the Upper Tribunal at London's High Court - is expected to last more than a week. |
The organisation, representing 1,260 schools, says the guidance is too narrow, and does not take into account all the charitable work that schools are involved in. | The organisation, representing 1,260 schools, says the guidance is too narrow, and does not take into account all the charitable work that schools are involved in. |
Nigel Giffin QC, appearing for the ISC on Tuesday, said: "We say the test of whether you have done what is reasonable or appropriate in the circumstances is so vague and so uncertain that it leaves [school] trustees wholly unable to say with a reasonable degree of certainty what they must or must not do in order to avoid any breach of trust." | Nigel Giffin QC, appearing for the ISC on Tuesday, said: "We say the test of whether you have done what is reasonable or appropriate in the circumstances is so vague and so uncertain that it leaves [school] trustees wholly unable to say with a reasonable degree of certainty what they must or must not do in order to avoid any breach of trust." |
As a consequence, he said, the commission "gets pulled in to second-guessing and micro-managing trustees' decisions about how to carry out their duties and run the charity". | As a consequence, he said, the commission "gets pulled in to second-guessing and micro-managing trustees' decisions about how to carry out their duties and run the charity". |
Mr Giffin continued: "The ISC has not brought these proceedings because it thinks that widening access to independent charitable schools is a bad thing or an unimportant thing. | Mr Giffin continued: "The ISC has not brought these proceedings because it thinks that widening access to independent charitable schools is a bad thing or an unimportant thing. |
"It is the position of my clients that widening access is an important and valuable thing. | "It is the position of my clients that widening access is an important and valuable thing. |
"The [ISC] evidence sets out in some detail the very considerable lengths the sector, taken as a whole, already goes to to widen access and engage in partnership activities. | "The [ISC] evidence sets out in some detail the very considerable lengths the sector, taken as a whole, already goes to to widen access and engage in partnership activities. |
"The practical problem that concerns many of its members is that, because of the commission's approach to what is a strict legal requirement, it has become very difficult - impossible even - for the trustees to know what they can or cannot do." | "The practical problem that concerns many of its members is that, because of the commission's approach to what is a strict legal requirement, it has become very difficult - impossible even - for the trustees to know what they can or cannot do." |
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