South America South

EnglishConnect in Chile

Summary

September 19, 2017

*This summary applies to EnglishConnect 1, EnglishConnect 2, and Learn English Now only.

1. Legal Entity:

The Church of Jesus Christ of Latter-day Saints in Chile (the “Chilean Church”), can carry out the EnglishConnect program in Chile. The EnglishConnect program will be part of the SelfReliance activities already taking place in Chile. The Chilean Church has the corporate authority to administer the EnglishConnect program.

2. Regulations and Licensing Requirements:

The Chilean Church is not subject to any regulations or licensing requirements, including but not limited to those for education, when it administers the EnglishConnect program, as long as it does not seek to offer accredited certificates.

3. Tax Consequences:

Operating EnglishConnect creates a low risk related to the Chilean Church’s property tax exemptions for meetinghouses where EnglishConnect classes are held.1 There are no tax consequences or reporting requirements arising from the nominal charge for course materials, as long as this cost is based on the actual cost of the materials and characterized as a “cost reimbursement” rather than a sale.2 The Chilean Church is not subject to any other tax consequences or reporting obligations related to administration of the EnglishConnect program since it offers these courses free of charge.

4. Other:

Other than those listed below, there are no legal issues arising from the Chilean Church’s administration of the EnglishConnect program in Chile.

a. Parental Consent.
The Chilean Church should obtain written consent from the parent/guardian of all EnglishConnect participants under the age of 18 before they can participate in the EnglishConnect program.

b. Missionary Visas.
Missionaries may teach EnglishConnect courses in Chile without causing issues with their existing visas as long as the missionaries do not receive compensation for the services.

c. Certificates.
The Chilean Church may issue OGC-approved certificates of completion to participants who successfully complete EnglishConnect courses. Issuing certificates of completion will not subject the Chilean Church to additional laws or regulations.

d. Participant Disclosure.
We recommend that the Chilean Church provide a disclosure to each participant that EnglishConnect courses will contain religious content, that they will not carry accredited value, and outlining the cost (if any) of EnglishConnect course materials. This can be accomplished by including such language in the standard online registration materials.

1. The Chilean IRS has stated that property tax exemptions must be interpreted strictly, with churches only being allowed to carry out religious/worship activities. If the Chilean Church is ever questioned about EnglishConnect, or Self-Reliance activities generally, it must be able to demonstrate that they are closely tied to its religious purposes. The risk to meetinghouse tax exemptions as a result of the EnglishConnect program is not any greater than that posed by the Self-Reliance activities already taking place.
2. If the Chilean Church sells EnglishConnect materials above cost (as a means of raising revenue), the sale will be subject to VAT. Alternatively, the Chilean Church could provide the materials for free or via PDF for participants to print at home without incurring any tax consequences.

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