Scientology and Their Tax Deal

[Number Six]

I was impressed with the NY Times article on how Scientology got a tax break of a lifetime and special status back in 1993, this Wikipedia article goes over the long drawn out issue: https://en.wikipedia.org/wiki/Tax_statu ... ted_States
https://www.nytimes.com/1997/03/09/us/s ... xempt.html

It seems that there was an unscheduled meeting between IRS commissioner Fred Goldberg, and Scientology head Miscavige when terms of the legal battles were negotiated. Do we know the hidden details of why the Scientology cult got ridiculous immunity from tax responsibilities as they did?

[Mike_p]

This side of the pond I understand we have a rule that says no parliament can bind future parliaments. Do you have something similar on your side? If so, it's probably a propitious time for someone to review that tax agreement.

[Burnaby49]

This side of the pond I understand we have a rule that says no parliament can bind future parliaments. Do you have something similar on your side? If so, it's probably a propitious time for someone to review that tax agreement.

I have no idea what's involved in the American Scientolgy tax exemption agreement however in Canada the "Church" has failed to win status as a federally registered charity for tax purposes. In Canada allowing an organization tax exempt status is a matter of regulation administered by the Canada Revenue Agency and this status can be revoked.

[Arthur Rubin]

As an aside, the only two types of IPs banned by Wikipedia are open proxies and Church of Scientology IPs.

[fortinbras]

In the US one Congress cannot prevent a subsequent Congress from amending or repealing legislation.

Tax exemptions have to be justified and the acquisition of evidence that an organization with a tax exemption is no longer adhering to either the legal requirements for tax exemption or to the purposes/activities for which it was granted its tax exemption will lead to a investigation that might revoke the tax exemption, and sometimes lead to retroactive tax liabilities and/or criminal charges. Scientology got its tax exemption largely by intimidating IRS employees and it's a real question whether this generation of IRS employees is tough enough to go toe-to-toe with the Scientologists for what may be a very prolonged and very dirty conflict.

[Number Six]

Governments in the US should look at all remedies; could the state of California sue the federal government for creating unreasonable and special treatment by classifying a commercial and provably criminal organization as a charitable one? There have got to be legal remedies like former members used. https://www.villagevoice.com/2008/06/24 ... ng-defeat/

[Famspear]

This side of the pond I understand we have a rule that says no parliament can bind future parliaments. Do you have something similar on your side? If so, it's probably a propitious time for someone to review that tax agreement.

I have no idea what's involved in the American Scientolgy tax exemption agreement however in Canada the "Church" has failed to win status as a federally registered charity for tax purposes. In Canada allowing an organization tax exempt status is a matter of regulation administered by the Canada Revenue Agency and this status can be revoked.

Same in the United States. I saw nothing in the Wikipedia article stating that the U.S. Congress was somehow a party to the agreement with the Scientology organization.

Presumably, the agreement was with the Secretary of the Treasury -- "or his delegate" -- perhaps under 26 USC section 7121. If so, the terms of the agreement would be considered "return information" under section 6103(b)(2)(D), and would thereby be considered "confidential" under section 6103. Generally, the willful disclosure of "return information" by an officer or employee of the United States is a felony under section 7213(a)(1) (up to five years in the slammer) -- except that section 6103 contains over forty pages of exceptions to that rule.