Source: http://www.xenu.net/archive/CourtFiles/occf72.html
Timestamp: 2019-04-18 18:28:05+00:00

Document:
pursuant to the Order on Reconsideration of June 29, 1992.
control religion's income producing property.  26 U.S.C.A. s 501(c)(3).
shelter from taxation."  26 U.S.C.A. s 501(c)(3).
*714 Monique E. Yingling, Washington D.C., for plaintiff.  Thomas C.
7428(a), resulting in the instant case.
prevention of cruelty to children or animals.
considered to be scripture by adherents of Scientology.
Scientology hopes to achieve this goal through its sacrament of "auditing."
Scientologists' desire to preserve the words of LRH for billions of years.
Providing auditing services is the chief function of "Class IV"
members into Scientology, and to provide them with basic Scientology services.
anyone still in the lower levels of Scientology.
FN4. See discussion infra p. 729.
recipient according to a scale of "fixed donations," or "fixed contributions."
(1984), aff'd, 823 F.2d 1310 (9th Cir.1987), and cert. denied, 486 U.S.
realized that its tax-exempt status was in doubt.
FN7. United States v. Zolin, 905 F.2d 1344 (9th Cir.1990), cert.
denied, Church of Scientology v. United States, 499 U.S. 920, 111 S.Ct.
1309, 113 L.Ed.2d 244 (1991).
opinion itself would not be accessible to the public.
churches collect money sent to them from the missions and Class IV churches.
of ecclesiastical and administrative affairs as "Advanced Organizations"
intermediate level church services and are authorized to ordain ministers.
ecclesiastical authority of RTC and CSI.
London.  The office was the source of all Policy Letters issued by LRH.
California in 1966.  Church of Scientology of California v.
Commissioner, 83 T.C. 381, 494 (1984).
Management Technology Defined 82 (1976).
been revoked, or it has been denied in the first instance.
court how these latter entities operate.
all high ranking organizations are Sea Org Churches.  Being a "Sea Org Church"
the attention of a significant number of Sea Org members.
Furthermore, the Sea Org appears to have considerable financial importance.
WW [World Wide] for final okay before such can be activated.
FN16. See discussion infra p. 724, n. 23.
First, LRH gave use of the Advanced Technology and religious marks to RTC.
[FN17]  These Scientology religious marks include the terms "Dianetics,"
supervises their activities to ensure compliance with Scriptural requirements.
Technology pay RTC six percent of the contributions they receive.
the advanced scriptures, literature and materials of Scientology.
churches to buy materials licensed through CSI, the current mother church.
501(c)(3).  Thus far, RTC has been found non-exempt by the Commissioner.
marks and technology that he had retained at the time of his gift to RTC.
CST with a sizable annual income, but only if it achieves tax-exempt status.
subsequently sought tax-exempt status under the Internal Revenue Code.
and maintain the purity and integrity of the religion of Scientology...."
Article III, By-laws of Church of Spiritual Technology.
with a depository for the bulk of his testamentary estate, as explained above.
Understanding the E-Meter 104 (1982).
RTC ranging from $623,000 to $2.8 million.
order to ensure that CST takes no action to jeopardize its tax-exempt status.
CST and one of its Directors.  He has been an employee of CSC, CSI, and RTC.
Leo Johnson is Secretary of CST.  Previously he had been an employee of CSC.
acquire additional sites.  The site in New Mexico was purchased for $250,976.
$120,000 for maintenance-free doors to be placed at the mouths of the tunnels.
"highly dedicated" Scientologists who are under the control of CST management.
storage facilities, others are kept available for study purposes.
professional laboratory would cost over $1,000,000.
finances of Scientology are highly relevant to CST's application.
expected to contribute to Central Reserves.
satisfied with the materials or auditing services, and monies held "in reserve"
the films provided to the local churches by the Films Trust.
in 1965 that all Scientology organizations create "Reserved Payment Accounts."
bills earlier than a certain date.' "  HCO Policy Letter of 28 January, 1965.
demanding full payment:  "Just say to tradesmen who dun you, 'Oh, really?
between the parallel accounts of the different churches.
Finance Ethics Officers, staff members of the Continental Liaison Offices.
who is an employee of CSI.
the account itself, is identified as Sea Org reserves, SO reserves, or SOR.
FN22. CST apparently maintains its own Central Reserve account.
Boston, Las Vegas, and Portland.
FN24. See discussion supra at 717-19.
spent in accordance with orthodox Scientology policy.
written by L. Ron Hubbard.
United States were activities of Church of Scientology *725 of California.
continues to own all of the shares.
Scriptures and of the E-meters.
States.  NEP is managed and primarily staffed by Sea Org members.
to the copyrighted and patented articles, and NEP in turn pays royalties to Mr.
BPI and with respect to items published directly by NEP.
position of ownership of those rights.
of the publishing rights, the advanced technology, and the marks.
occurred largely before CST even existed.
Evidence ss 2578-2579 (Chadbourn rev.1981).
T.C. at 492.  Additionally, the CSC court found "covert indicia of benefit"
over the millions of dollars resting in Operation Transport Corporation, Ltd.
[FN27] and the United States Churches of Scientology Trust.  Id.
false impression of a legitimate, independent existence.  Id. at 505.
financial planning.  Id. at 504.
and had followed the same procedures used in investigations of other churches.
justified the IRS's attention.  CSC, 83 T.C. at 453.
though it had been told to begin filing annual returns. [FN28]  CSC, 83 T.C.
FN28. Form 990 is a form filed by non-profit organizations.
the fact that revocation letters are effective upon their issuance.
422 (1970), members of the Founding Church of Scientology filed a refund suit.
discovery, the district court dismissed the case.
U.S. Government entities particularly the Internal Revenue Service."
802 F.2d at 1450 n. 3.
the tapes that they are attempting to confuse and defraud the government."
years, ending on July 8, 1988, when the IRS issued its final adverse ruling.
CST, CSI, and RTC all applied for tax-exempt status at the same time.
of RTC and CSI.  At one point, CST informed the IRS that "it did not agree"
made by the IRS, and that the reservations were insignificant anyway.
FN30. Letter from CST to IRS of November 7, 1984.
replied that the IRS "had no business" relying on information from such people.
FN31. Letter from CST to IRS of September 10, 1984.
FN32. Letter from CST to IRS of June 26, 1985.
take testimony from that person "as may be relevant or material."
record below.  Church of Spiritual Technology v. United States, 18 Cl.Ct.
FN35. World Family Corp. v. Commissioner, 81 T.C. 958, 965 (1983).
benefits inure from it to private individuals.  See Treas.Reg.
operational test.  Treas.Reg. s 1.501(c)(3)-1(c)(1).
own documents and activities, not those of other Scientology organizations.
pages 719-20, but there are at least three other connections.
defining characteristic of a church.  Church of Eternal Life v.
Guidance Found., Inc. v. United States, 490 F.Supp. 304, 306 (D.D.C.1980).
organization as a church.  Foundation of Human Understanding v.
Commissioner, 88 T.C. 1341, 1357 (1987) (citing De La Salle Inst. v.
United States, 195 F.Supp. 891, 901 (N.D.Cal.1961)).
treatment under the Internal Revenue Code than do religious organizations.
with strict and specific procedures specified in I.R.C. s 7611.
materials are considered orthodox in the religion.
ecclesiastical one which would not be readily susceptible to judicial review.
the bulk of the income-producing property of Scientology.
trustee appointed by the court to administer LRH's estate.
organizations, and could, presumably, be cut off.
solicited, nor has it received, voluntary contributions from the public."
whole.  Although CST has repeatedly declared that it does not "voluntarily"
concerns raised by its association with other non-exempt entities.
whether an organization is operated for exclusively exempt purposes.
(1982);  See also Better Business Bureau, 326 U.S. at 283, 66 S.Ct. at 114.
activity."  Goldsboro Art League v. Commissioner, 75 T.C. 337, 343 (1980).
one of operating a commercial business producing net profits for petitioner."
Christian Manner Int'l, Inc. v. Commissioner, 71 T.C. 661, 668 (1979).
to deprive the statutory provision in question of all serious purpose.
the income of other organizations from tax.
the proliferation of entities and accounts and the overlap of personnel.
what?  Your accountants should be capable of avoiding tax problems.
money, not to be broke.
HCO Policy Letter of 28 January, 1965.
return to satisfy their bloodsucking appetite and STILL come out zero.
HCO Policy Letter of 25 June, 1967.
a tax deduction for them.
for the church bookstores.  A minimum inventory is mandated by church policy.
between such an arrangement and that maintained by any commercial bookstore.
charitable pricing policy for books:  "Establish fully the printing cost.
reduction he pays a whole figure."
Scientology's case, the opacity is so pronounced as to approach wilfulness.
League's exhibits was incidental to overall exempt educational purpose).
time both the position and velocity of an electron.
record, unanswered by CST, lead to this conclusion.
an informational return.  I.R.C. s 6033(a).
income production ultimately flows.  Books and tapes must be orthodox.
potential for abuse of the options and copyrights therefore is considerable.
but it will still control millions of dollars worth of income-producing assets.
by LRH lacks only the court's sanction.
the archive, or to have some other straightforward financing scheme.
(1961), cert. denied, 368 U.S. 985, 82 S.Ct. 597, 7 L.Ed.2d 523 (1962).
were apparently not worth supporting unless they generated a tax exemption.
not worth doing if it will not be done by a tax-exempt organization.
profit corporations were trading on such status."  Est of Hawaii v.
generate a deduction."  Miedaner, 81 T.C. at 280 (footnote omitted).
our cost assignment to fund."
Corp. v. Commissioner, 81 T.C. 958 (1983);  People of God Community v.
Commissioner, 75 T.C. 127 (1980).
least not sane ...  These people who attack have secrets.  And hidden crimes.
"mad" people is by attacking first, and blankly refusing to cooperate.
up to clobber Scientology with huge tax bills in England and the U.S."
avoidance into a tax exemption.  Ecclesiastical Order of ISM of AM, Inc. v.
Scientology.  Nor does the court hold that Scientology is not a religion.

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