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The tax status of the Church of Scientology in the United States has been the subject of decades of controversy and litigation. Although the Church of Scientology was initially partially exempted by the Internal Revenue Service (IRS) from paying federal income tax, its two principal entities in the United States lost this exemption in 1957 and 1968.
Although church spokesperson Karin Pouw says that restoring buildings of historical significance is a way that the church "gives back to the community", according to LA Weekly, former high-ranking Scientology officials claim that profit is the main reason why the studio was built, while the church maintains its tax-free status. [24] [26]
While some governments now give the Church of Scientology protections and tax relief, [139] [140] other sources describe the organization as a pseudoreligion or a cult. [141] Early official reports in countries such as the United Kingdom (1971), South Africa (1972), Australia (1965) and New Zealand (1969) have yielded unfavorable observations ...
One goal of the Church of Scientology is to be recognized as a religion or a tax-free charity, which has met resistance from several governments, with Scientology taking to the courts with varying results. For example, Scientology's path to legal recognition as a religion in New Zealand took 48 years and several lawsuits. [8]
After being recognized as a tax-exempt religious organization in 1957, Scientology's tax-exempt status was lost in a 1967 IRS audit. [5] As part of the effort to regain tax exemption during the late 1970s, Scientologists repeatedly infiltrated the IRS, copying large numbers of documents and at one point placing an electronic bugging device in an IRS conference room. [5]
But the church, she says, was actually a cult. Walker spent her formative years, since age 8, in the group. She says it was a place where members were unable to question leaders "without facing ...
Although a number of critics and former members have described the church as a cult and accused the church of abuse, [14] these accusations are disputed by current members and church officials who claim that through "strong prayer", church fellowship, Biblical teaching, and encouraging community, lives ultimately change. [15]
The Church of Scientology's interest is to be recognized as a religion as well as a charitable organization. Max Halupka observes "While a tax-exempt status is not a legal declaration of religious authenticity, the significance afforded the status by the public serves to color its true purpose.