CoS UK Tax Return (2008) on Wikileaks.

Axiom142

Gold Meritorious Patron
The financial returns for the CoS in the UK for the year 2008 have been posted to Wikileaks: http://www.wikileaks.org/wiki/Scientology_UK_annual_returns,_2008

Not really secret as details are available from Companies House, but interesting nontheless.

Perhaps someone with some accountancy experience can have a look and make sense of these?

In the meantime, here are some highlights:

Operating loss (before taxation) = £4,978,305

Cash in bank and at hand = £23,835,414

Creditors = £24,554,012

Bank loans repayable within 5 years = £1,486,314


I’m not an expert, but this doesn’t sound very healthy to me. Or could it just be a ruse to avoid paying tax?


Tangible fixed assets = £31,904,717

Stocks of ‘religious books and artefacts’ = £2,226,585 (up from £1,656,165 the previous year)


Sounds like they have a lot of unsold books – the ‘Basics’ not as popular as hoped for?

And interesting note on some companies wholly owned by the CoS:

Nesta Investments Limited
SOR Services (UK) Limited
(Sea Org Reserves?)

Does anyone know anything about these?

And this bit, confirms what we already knew:

“The Church of Scientology Religious Education College Inc was incorporated in Australia as a religious charity on 19 October 1976 and commenced activities in the United Kingdom on 1 May 1977.”

“The church is a South Australian charity, and is established in England for charitable purposes only. The Trustees consider that corporation tax should not therefore be applicable, however corporation tax and deferred tax have been provided for in these financial statements.”


This just underlines how important the proposed investigation in Australia is. If they lose tax-exempt status in Australia, they will have to change the structure of the ‘church’ in the UK.

Axiom142
 

Zinjifar

Silver Meritorious Sponsor
I'd say it's safe to assume that however unhealthy the stats and forms are that they're all Science Fiction.

Zinj
 

RogerB

Crusader
Losses???

Yes, well, under accounting rules, they can determine whomever they choose to be a "creditor" for any amount they choose (give or take some sense of decorum: and the UK tax boys, when I was there, behaved as gentlement, so you could get away with murder).

A "creditor," for example, could be the estate of LRH for royalties owed, or otherwise another example would be the ostensible parent company in Oz for a licensing fee. And since they publish the books and manufacture the emeters within the extended organization another creditor to whom they can owe outrageous costs to (devised to produce no or very reduced profit on resale in the UK) would be their off-shore affiliate org producing or relaying (as a sales conduit) the merchandise to them.

This last caper is standard practice amongst international corporations in order to reduce domestic taxable profits.

Rog
 

TalleyWhacker

Patron with Honors
Yes, well, under accounting rules, they can determine whomever they choose to be a "creditor" for any amount they choose (give or take some sense of decorum: and the UK tax boys, when I was there, behaved as gentlement, so you could get away with murder).

A "creditor," for example, could be the estate of LRH for royalties owed, or otherwise another example would be the ostensible parent company in Oz for a licensing fee. And since they publish the books and manufacture the emeters within the extended organization another creditor to whom they can owe outrageous costs to (devised to produce no or very reduced profit on resale in the UK) would be their off-shore affiliate org producing or relaying (as a sales conduit) the merchandise to them.

This last caper is standard practice amongst international corporations in order to reduce domestic taxable profits.

Rog


Yes, no doubt the books are cooked.
Slappy has so many entities, it would probably drive a person bat-ass crazy following the string. He and his ilk are never getting caught with their panties down.
Besides, their skinny little asses are too ugly for that.
 

Feral

Rogue male
Yes, well, under accounting rules, they can determine whomever they choose to be a "creditor" for any amount they choose (give or take some sense of decorum: and the UK tax boys, when I was there, behaved as gentlement, so you could get away with murder).

A "creditor," for example, could be the estate of LRH for royalties owed, or otherwise another example would be the ostensible parent company in Oz for a licensing fee. And since they publish the books and manufacture the emeters within the extended organization another creditor to whom they can owe outrageous costs to (devised to produce no or very reduced profit on resale in the UK) would be their off-shore affiliate org producing or relaying (as a sales conduit) the merchandise to them.

This last caper is standard practice amongst international corporations in order to reduce domestic taxable profits.

Rog

Creditors would also include moneys owed to Flag and management. In fact the majority of debts would be 'loans' from those entities.

This is a standard practice in shifting the weight of profits from a taxable entity to a non taxable one.

I'd like to know what orgs the gross of 13 mill pounds was collected from, is that all of the orgs in the UK? Does it include ideal orgs and IAS?
 

Axiom142

Gold Meritorious Patron
Creditors would also include moneys owed to Flag and management. In fact the majority of debts would be 'loans' from those entities.

This is a standard practice in shifting the weight of profits from a taxable entity to a non taxable one.

I'd like to know what orgs the gross of 13 mill pounds was collected from, is that all of the orgs in the UK? Does it include ideal orgs and IAS?

The total income of £12,958,196 for 2008 comes from all the UK orgs and missions. I’m pretty sure that the IAS collections aren’t included in this as they are viewed as a separate entity.

Axiom142
 

thetanic

Gold Meritorious Patron
The total income of £12,958,196 for 2008 comes from all the UK orgs and missions. I’m pretty sure that the IAS collections aren’t included in this as they are viewed as a separate entity.

So in the UK, orgs aren't separately owned and incorporated?
 

mate

Patron Meritorious
The Church of Scientology has registered the name, “Church of Scientology Religious Education College Incorporated”. This is a South Australian registered association (Registration Number A5172), which I believe has a registered office in the Church of Scientology of Adelaide at 18 Waymouth St, Adelaide, SA 5000.

Overseas corporate accounts were set up with the National Westminster Bank in the UK. The accounts were/are called Church of Scientology Religious Education College Incorporated AOSHUK Finance Office No 1 Account, Church of Scientology Religious Education College Incorporated AOSHUK Finance Office Account No 2. As far as I can determine, the funds in those two accounts were dispersed to other overseas corporate accounts with the National Westminster Bank called the Church of Scientology Religious Education College Incorporated Main Accounts, Church of Scientology Religious Education College Incorporated Reserve Accounts, Church of Scientology Religious Education College Incorporated HCO Accounts of the various scientology organisations in the UK, however, most of the money was remitted to the US. None of the funds were remitted to Australia, whatsoever, and no tax was paid in Australia. It should also be noted that
I suspect that the use of the name “Church of Scientology Religious Education College Incorporated” was chosen because it would have led the UK bank, the National Westminster Bank to consider it a genuine corporation rather than a registered association, and so bound by corporate law rather than having few, if any, rules. So as a result the bank would assume that income tax would be paid in Australia, which of course, it wasn’t.

As I understand it, the system was set up in the early ‘70s, by Herbert G. Parkhouse who was the Deputy Guardian for Finance in the Guardian Office World Wide, and this was not only prior to the scientology corporation being granted tax exemption in Australia in 1983, but it was probably before the Whitlam Labor government recognized the Church of the New Faith, as the scientology corporation was then known in Australia, as a religious organization and could provide a marriage service in 1973.

It should also be noted that Church of Scientology Religious Education College Incorporated was never registered as a charity nor did it apply for such.

Not only is this tax evasion, but also it is money laundering.

If I may be so bold, I would like to suggest to those of you, who are who are UK citizens, to provide this information to HM Revenue and Customs, your local member of parliament, and to members of the House of Lords.

It is about time we had some action in the UK, don't you think?

Regards, David.
 

Alanzo

Bardo Tulpa
The Church of Scientology has registered the name, “Church of Scientology Religious Education College Incorporated”. This is a South Australian registered association (Registration Number A5172), which I believe has a registered office in the Church of Scientology of Adelaide at 18 Waymouth St, Adelaide, SA 5000.

Overseas corporate accounts were set up with the National Westminster Bank in the UK. The accounts were/are called Church of Scientology Religious Education College Incorporated AOSHUK Finance Office No 1 Account, Church of Scientology Religious Education College Incorporated AOSHUK Finance Office Account No 2. As far as I can determine, the funds in those two accounts were dispersed to other overseas corporate accounts with the National Westminster Bank called the Church of Scientology Religious Education College Incorporated Main Accounts, Church of Scientology Religious Education College Incorporated Reserve Accounts, Church of Scientology Religious Education College Incorporated HCO Accounts of the various scientology organisations in the UK, however, most of the money was remitted to the US. None of the funds were remitted to Australia, whatsoever, and no tax was paid in Australia. It should also be noted that
I suspect that the use of the name “Church of Scientology Religious Education College Incorporated” was chosen because it would have led the UK bank, the National Westminster Bank to consider it a genuine corporation rather than a registered association, and so bound by corporate law rather than having few, if any, rules. So as a result the bank would assume that income tax would be paid in Australia, which of course, it wasn’t.

As I understand it, the system was set up in the early ‘70s, by Herbert G. Parkhouse who was the Deputy Guardian for Finance in the Guardian Office World Wide, and this was not only prior to the scientology corporation being granted tax exemption in Australia in 1983, but it was probably before the Whitlam Labor government recognized the Church of the New Faith, as the scientology corporation was then known in Australia, as a religious organization and could provide a marriage service in 1973.

It should also be noted that Church of Scientology Religious Education College Incorporated was never registered as a charity nor did it apply for such.

Not only is this tax evasion, but also it is money laundering.

If I may be so bold, I would like to suggest to those of you, who are who are UK citizens, to provide this information to HM Revenue and Customs, your local member of parliament, and to members of the House of Lords.

It is about time we had some action in the UK, don't you think?

Regards, David.

It's about time we had some action in the United States, too.

These people with the funny accents are starting to piss me off.
 

ScudMuffin

Silver Meritorious Patron
If I may be so bold, I would like to suggest to those of you, who are who are UK citizens, to provide this information to HM Revenue and Customs, your local member of parliament, and to members of the House of Lords.

It is about time we had some action in the UK, don't you think?

Regards, David.

This was done ages ago. Shit happened. We need charity status to be lost in Oz before anything can seriously be done.
 

Thalkirst

Patron with Honors
Nesta Investments Limited
SOR Services (UK) Limited
(Sea Org Reserves?)

Does anyone know anything about these?

SOR Services Ltd. is a corporation to handle EU, Russian & UK Sea Org Reserves related matters. It is also used to hide certain funds from authorities (coming mainly from the Russian and Hungarian Sea Org operations).
 
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