Take a look at this link:
It explains the rules guiding the use of trading subsidiaries to reduce the amount of tax a charity pays.
In this case, the 'charity
' is the Moo Foundation and the 'trading subsidiary
' is Mooji Media LTD.
Using the 'beneficiaries' of your charity as employees is one way of getting a tax exemption. For this purpose, the 'beneficiaries' of the Moo Foundation would be the ashram devotees, as the charity
exists for their benefit
. (At least on paper!!)
I'm not sure about how the Moo Foundation get around having them work for free, though. In ashram terms this free labor is called 'seva', but in legal terms, I'm not sure how it works.
According to the paperwork filed by the Moo Foundation, the ashram is Portugal gets by on 'grants' from the Moo Foundation, to the tune of around 400,000 pounds for the year ending in 2017.
What happens to the money they earn from their chai shop and restaurant, also staffed with free labor form devotees? It's hard to say, just going by their records.
They do have a lawyer and an accountant on staff in the U.K, so it looks like things are all tied up fairly watertight.