1993, 1.10.used under fair use
http://www.freezone.org/timetrack/1993.htm#1993, 13 Aug
The agreement comes into force. Scientology pays the IRS $12.5m in back taxes and drops all the lawsuits brought by Church entities and individual Scientologists against the IRS. Ref: Closing agreement on final determination covering specific matters, 1 Oct 1993 (Timeline of Scientology versus the IRS)
The Department of Justice tells the IRS to issue a tax exemption. The Community Relations Service of the Department of Justice negotiated a secret Civil settlement with both the Church of Scientology and the Church Universal & Triumphant of Montana. Dow Jones and a Montana newspaper have sued the Dept of Justice to try and find out what is going on.
The Dept of Justice has acted illegally – they must reveal Civil settlements to the public.
For the Dept of Justice to tell the IRS what to do, they must do it at the Cabinet level with the President sitting, listening and agreeing to the breach of law. (Criminal Time Track: Issue III, (57))
The IRS made a deal with Scientology. They gave them tax exemption without telling why,
although they had won against
Scientology in Hernandez v Commissioner, 490 U.S. 680 (1989)
and in
Church of Spiritual Technology v U.S., US Claims Court No. 581-88T, 6/29/92 (1992)
Note: What is this about the Justice Department ordering the IRS to give Scientology tax exemption, based on a secret settlement agreement? That’s odd. What was the agreement? That Miscavige will squirrel the OT levels and not make any OTs in exchange for tax exemption? We will be doing further investigation into this.
David Miscavige meets with the IRS Commissioner. After 40 years of fighting, the IRS gives Scientology tax exemption.
The terms of the agreement are kept secret and not disclosed to other church members. It is a 61 page document.
The Church pays the IRS 12.5 million and agrees to drop thousands of suits against the IRS. It also agrees to stop assisting others in lawsuits against the IRS.
The secret settlement agreement permits Miscavige and certain other Scientologists to monitor, supervise, and compel their own "compliance", and that of all Scientologists, with the tax laws of the US thereby constituting them "state actors" and agents of the IRS.
A copy of the 61 page secret agreement was obtained and it states:
The parties have entered into this agreement in order to put the past controversy behind them, to extinguish all potential claims and liabilities arising as a result of action or inaction prior to the date of this Agreement and to structure their relationship into the future.
First, under section II of the Agreement the Church will make a single payment that is intended to extinguish any potential tax liability that may be due and unpaid by any Scientology-related entity for all tax years up to and including the tax year ending in 1992.
Second, under section II of the Agreement, the Church and the Service will withdraw from virtually all existing controversy, including on-going examinations of Church entities, ongoing litigation by the Service to enforce summonses for Church records, and all litigation by the Church against the Service and its current or former personnel. Similarly, no Scientology-related entity may initiate or support any legal action against the Service or any Service employee for any claim arising prior to the date of the Agreement.
Notwithstanding the above, in light of, inter alia, the size and complexity of the Church and the Service, certain concerns of the Service and the Church remain. Thus, under section IV, a Church Tax Compliance Committee (CTCC) has been created to undertake certain obligations during the seven-year transition period. The CTCC is to be comprised of the largest United States Church entities, as well as those individuals who are the highest ecclesiastical or corporate authorities within the Church. The Service, through the Assistant Commissioner, has agreed to meet with the CTCC upon their request during the transition period to address any questions arising from the ongoing performance of the parties’ obligations under this Agreement.
In light of the CTCC and its relationship to the whole of Scientology, the CTCC has agreed under section IV to guarantee the collection of taxes (including interest and penalties) from any Scientology-related entity for tax liability arising during the first three years of the seven year transition period. The parties have agreed under section V to keep confidential both this Agreement and all underlying information that is not part of the public record….
At the same time this Agreement is executed, Church of Scientology International is paying by banker’s draft the sum of $12,500,000.00, receipt of which the Service hereby acknowledges, as consideration for the settlement of outstanding issues with the Service as set forth in this Agreement.
The corporate CTCC members are Religious Technology Center (RTC), Church of Spiritual Technology (CST), Church of Scientology Flag Service Organization (CSFSO), Church of Scientology Western United States (CSWUS), Building Management Services (BMS), and Church of Scientology Religious Trust (CSRT).
The individual members of the CTCC are
David Miscavige,
Norman Starkey, Mark Rathburn and
Heber Jentzsch. No individual member of the CTCC shall be permitted to withdraw from service on the CTCC, except by reason of death, being adjudicated an incompetent, or by mutual agreement of the parties of this Agreement.
Specific responsibilities and duties of the CTCC shall include the following:
