The Internal Revenue Service awarded tax exemption to the California and Washington, D.C. churches in 1956 and 1957 respectively. In 1958, however, the Washington church lost its tax-exempt status on the grounds that its tenets and practices did not constitute an exclusively religious or educational activity.[7] A key factor in the revocation of its exemption was the issue of private inurement – the use of tax-exempt monies to benefit a non-tax-exempt individual or entity. The Court of Claims found that Hubbard and his family had profited from the Washington Church of Scientology. He had been given $108,000 over four years by the church, with the free use of a car and a private residence. His family had withdrawn thousands of dollars from the church's funds, and his wife Mary Sue had earned over $10,000 from renting property to it. Hubbard had also been tithed ten percent of the church's gross income.[8] The church appealed to the US Court of Claims, but lost. The court ruled that Scientology was a "business, a profit-making organization run by Hubbard for his personal enrichment."[7]
In 1959, Hubbard moved to England where he purchased Saint Hill Manor in East Sussex to serve as a family home and world headquarters of Scientology.[9] Over the following seven years, he tried repeatedly to establish a tax-exempt corporate vehicle in the United Kingdom by establishing multiple limited companies under the aegis of various Scientology entities and applying for non-profit status. However, the British Inland Revenue consistently refused the applications
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I'll repeat the audited FACTS
In 1958,,,,,,,,,,, private inurement – the use of tax-exempt monies to benefit a non-tax-exempt individual or entity. The Court of Claims found that Hubbard and his family had profited from the Washington Church of Scientology. He had been given $108,000 over four years by the church, with the free use of a car and a private residence. His family had withdrawn thousands of dollars from the church's funds, and his wife Mary Sue had earned over $10,000 from renting property to it. Hubbard had also been tithed ten percent of the church's gross income.[8] The church appealed to the US Court of Claims, but lost. The court ruled that Scientology was a "business, a profit-making organization run by Hubbard for his personal enrichment."[7]
In 1959, Hubbard moved to England