Who pulled the strings in Scientology’s illegal tax exemption?

Posted: February 15, 2008 in Illegal Tax Exemption

pulling_strings.jpgWhat’s YOUR guess? Examine for yourself these quotes from Jeff Jacobsen’s well-documented article, “Scientology’s Tax Exemption Should be Rescinded.” You should also Google tax exemption for Scientology and research the circumstances for yourself. Just like most other matters related to this “Cash Cow” organization … it’s shrouded in mystery. Is it time for the mystery to end?

On October 1, 1993, the U.S. Internal Revenue Service formally announced that the Church of Scientology and its myriad corporate entities had been granted tax exemption. This was a stunning announcement considering that the IRS had been in almost constant battle with Scientology since 1966, had several court (and even a Supreme Court) rulings in its favor, and had compelling evidence of Scientology fraud, misrepresentation, and even harassment against IRS officials. The ruling, however, stopped thousands of lawsuits against the IRS and individual IRS auditors filed by or on behalf of Scientology.

L. Ron Hubbard wrote in 1965 (the year the IRS audit began) that “Taxes exist only to destroy business. Be impudent. Get rich and to hell with them. Governments are just a reactive bank we have to live with for a while.”

Former IRS Commissioner Donald Alexander voiced concerns about the IRS’s decision … “I hope that the IRS did not give in to intimidation … I have great reservations, based on public record and published stories, about this organization’s activities and whether this was, is, or remains a money-making cult.”

“‘The IRS normally settles on tax issues alone,’ said Robert Fink, a New York tax lawyer who reviewed the agreement. ‘What the IRS wanted was to buy peace from the Scientologists. You never see the IRS wanting to buy peace.'”

The IRS suddenly chose to ignore court rulings in its favor and even common sense. There was ample and well-documented evidence of Scientology’s abuse of the law, the courts, and the IRS. Yet all this was set aside in one sudden submission to Scientology’s desires.

It is also clear from the history that Scientology was indeed treating its disputes with the IRS as war. They attacked the IRS consistently on many fronts; suing and investigating individual IRS agents, deliberately obscuring their records, constantly suing the IRS directly, taking out anti-IRS advertisements, funding anti-IRS groups, lying, infiltrating, stealing, bugging, offering rewards for IRS whistleblowers, pressuring congressmen to investigate the IRS, filing countless Freedom of Information Act requests, creating a corporate maze, publishing anti-IRS articles in their own magazines, and other methods. The attacks worked.

Comparing the IRS to Hitler, Miscavige stated “Don’t forget – the IRS hadn’t found the Church doing anything wrong. They just wanted to get us. So they had to resort to pure lies. Picking up a technique from their mentor, Adolf Hitler, in his book, “Mein Kampf”, they subscribed to the theory that “the bigger the lie – the more easily it would be believed.”

Scientology is organized and run as a business in most aspects. Those who proselytize for the organization are called Field Staff Members, or FSMs. FSMs make a percentage (generally 10%) on any sale made to the new recruit, be it a book, an e-meter, or a course. Ken Pirak made $407,000 in 1991 as an FSM. The contract with Pirak for his proselytizing activities says all taxes required by any government “with respect to the business of Pirak… shall be made, filed, and paid by Pirak.” Note that Scientology’s own contract labels FSM work as “business.” Scientology therefore uses a commercial method of salesman compensation in order to gain converts.

What does Scientology do with its money? According to IRS rules, the activities of a religious tax exempt organization are supposed to be of benefit to society. However, much of Scientology’s funds go to attack anyone who dares speak out against Scientology. Their cadre of attorneys and pool of private investigators continuously and aggressively pummel anyone Scientology decides is an enemy.

Here is the entire article.

Advertisements
Comments
  1. […] pseudoscientology wrote an interesting post today on Who pulled the strings in Scientologyâs illegal tax exemption?Here’s a quick excerptExamine for yourself these quotes from Jeff Jacobsen’s well-documented article, “Scientology’s Tax Exemption Should be Rescinded.” Google tax exemption for Scientology and research for yourself. Just like most other matters related to … […]

    Like

  2. […] pseudoscientology wrote an interesting post today on Who pulled the strings in Scientologyâs illegal tax exemption?Here’s a quick excerptThis was a stunning announcement considering that the IRS had been in almost constant battle with Scientology since 1966, had several court (and even a Supreme Court) rulings in its favor, and had compelling evidence of Scientology … […]

    Like

  3. AnonymousMom says:

    Do ministers and priests get commissions for converts? And do they get a percentage of the till in Sunday’s collection plate? Does one denomination have a monopoly on the Bible and charge exorbitant sums for updated versions of it? Does your religion require electricity to exists?

    Didn’t think so.

    Yup, it’s a money-making enterprise doing business under false pretenses in order to increase its take. If it really is a religious faith, and those ideas are of value to mankind, they should be released.

    And of course, it goes without saying, that the United States Congress and public have a right to see not just what is in that agreement — a special agreement offering preferential treatment above and beyond that which any traditionally recognized religion gets — but also to have hearings and investigations into what led the IRS to cave so utterly. The IRS needs to check its security risks, including blackmail targets, and so on, to find out how this came about, rescind it, and ensure it never happens again.

    Like

  4. […] The IRS normally settles on tax issues alone, said Robert Fink, a New York tax lawyer who reviewed the agreement. What the IRS wanted was to buy peace from the Scientologists. You never see the IRS wanting to buy peace. .Who pulled the strings in Scientologys illegal tax exemption? […]

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s