Part 4: The US Tax Scam
The various corporations and entities of Scientology are tax exempt
since 1993. This includes CSRT. The following applies to them:
http://www.irs.gov/pub/irs-pdf/p1828.pdf
Churches and religious organizations, like many other charitable
organizations, qualify for exemption from federal income tax under IRC
section 501(c)(3) and are generally eligible to receive tax-deductible
contributions. To qualify for tax-exempt status, such an organization
must meet the following requirements (covered in greater detail
throughout this publication)
■ the organization must be organized and operated
exclusively for religious, educational, scientific, or other
charitable purposes,........
■ .......the organization’s purposes and activities may not
be illegal or violate fundamental public policy.
In its 1993 filing to the IRS for exemption, CSRT stated the following
about the Super Power Expansion Project:
http://www.xenufrance.net/csrt-scientology-religious-trust-jo-epstein-to-irs-1993.pdf
At present, CSRT is engaged in a fundraising program to raise $40
million to construct a 150,000 square foot facility to be used by Church
of Scientology Flag Service Organization ("CSFSO"). This facility will
consist of two buildings. One will be custom designed for the ministry
of Scientology religious services to CSFSO's parishioners. The other
will be a contiguous auditorium capable of seating 2,500 people for
congregational religious events, meetings and religious celebrations.
When completed, CSRT will lease the two buildings to CSFSO on reasonable
terms as determined by CSI.
By 2011 the Church of Scientology Religious Trust had collected an
estimated $177 Million
for the Super Power Expansion project. This exceeds the stated need for
the new buildings (both the Super Power Building and L. Ron Hubbard
Hall) by more than 4 times.
Per IRS code 501(c)(3) excessive fundraising qualifies as UBI (Unrelated
Business Income) and needs to be declared as such.
“Sometimes, activities that ARE related to exempt purposes can still
generate UBI if they are conducted on a larger scale than is reasonably
necessary to perform an exempt function. In this instance, the portion
that is more than needed is considered an unrelated trade or business.”
As we have shown on this website, the Church of Scientology perverts
the truth in order to induce its parishioners to part with their money.
Falsely claiming the new building is needed for the release of the Super
Power Rundowns, intentional delays, incurring massive penalties, glossy
promotional pieces, promises of opening dates come and gone – all to
maintain a lie and extract more money from parishioners.
Surely this fraud falls within this section of the IRS Code:
"activities may not be illegal or violate fundamental public policy."
The US taxpayer is contributing to this scam by the
church avoiding taxation on money that is far in excess of what is
needed for the purpose they claim it is for.