Approximate translation of a newspaper article in "24 Heures", 14 October 2000. [Square bracket comments by Entheta].

"Scientology - Tax litigation with the State"

"The sect in a bad situation ?"

According to the daily newspaper "La Liberté" [another local newpaper], scientologists, who are not currently paying taxes, would have lost their case in the Administrative Court [Tribunal administratif].

Since 1993, the cantonal Tax Administration (ACI) [= IRS, at the cantonal level, ie similar to a US state or canadian province] waits for the Administrative Court (TA) to settle for a litigation opposing it to the scientologists. The ACI requires the TA to find out whether the organization who calls itself "Church" of Scientology must be considerated as a business, ie tax paying, or as a tax exonerated religious organization. According to what was revealed yesterday in the daily newspaper "La Liberté", judge Jean-Claude Haller had just emitted an unfavourable verdict for the scientologists. It is impossible, for the time being, to obtain his judgement, as the TA is not publishing its verdicts. Only the concerned parties are entitled to give information. There was no declaration from the side of the ACI, held by the tax secret [not allowed to reveal information on taxees]. The newspaper was able to speak to the scientologist spokeperson, Suzanne Montangero, who refused to tell anything, but had difficulties hiding her anger and promised "there would be continuations"

["suites" in french, which usually means a half-concealed threat]. Hence the logical conclusion the scientologists would have lost the battle.

"Important sums"

A well informed source confirmed us yesterday that "La liberté" was not wrong. The news is important, because it involves large sums of money, as the Lausanne based sect has not paid taxes, either communal [city taxes] or cantonal [state taxes] taxes since 1991. The Lausanne municipality, had not received any offcial information yet, either from the TA or the ACI, and is strongly interested in the case. The "continuations" mentioned by Mrs Montangero probably imply an appeal at the Federal Court (TF) [highest court in Switzerland, similar to the US Supreme court], with a possible suspensive effect. In case that the maneuver would succeed, the "victims", ie Lausanne and the State of Vaud are at risk of not getting a single cent, due to the twelve years prescription delay in tax cases. The first complaint of the scientologists against the ACI's taxation dates back from 1991. According to a member of the Lausanne authorities, this scenario is rather improbable, as the Federal Court has already had to handle such a case in Zurich, and denied them the right to be considered as a church. Moreover, it can happen that the TF can judge rapidly. If in the end the scientoogists of the canton Vaud are recognized as a business, they will have to pay.

Entheta.

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