Capital figures: How scientology spends money: the scientology tax returns to the IRS


Scientology declarations to IRS: The use of "central reserves" in scientology.

Scientology has subscribed to some of the demands from IRS before 1993, to get its undeserved tax exemption.

Between those questions and demands, the IRS asked some details about the transfers of finances inside what scientology calls its
Central Reserves.

Those funds are kept in a bank called Kredietbank Luxembourg, whose reputation was not great.

They are managed through a quite complex system, mainly under the direction of CSI, RTC, CSRT, FSO, BMS, WUS, SIRT, FST, CFSSFT Bridge Publications, and some other scientology parts**.

The main name behind finances of scientology, under the orders of the main lieutnants and of the scientology patron Miscavige, is a guy called Jonathan - or Johnny - Epstein.

The original text from scientology in answer to the IRS demand is given on bottom

It's the piece # 151746, produced by CSI 11-4-93 for the financial period 1990.

[ the cents have been mostly neglected for those calculations, as well as some non-significative expenses, which explains the small differences between the totals calculated here and scientology totals]


CSI: Church of Scientology International
RTC: Religious Technology Center
CSRT: Church of Scientology Religious Trust
FSO: Flag Ship Org
CSC: Church of scientology of California
BMS: Building Management Services
Bridge Publications

WUS: scientology western USA
SIRT: Scientology International Publications Trust
FST: Flag Ship Trust
probably Foundation Church of scientology Flag Ship Service Organization
TCS ??
IPT ??
SOP or SDP ??
San Donato Properties

More detailed sums can be found in pdf or excel formats :

Global list (main lines of list One and Three) PDF here

Commercial list (same as above, without royalties between scientology) PDF here

Excel files zipped of those lists

May I recommend to print the two pdf lists, a dozen pages?

free acrobat reader for pdf files

List Scientology One called:

"Reserves disbursements to other entities including commercial vendors"

A/ Payments done from Reserves to
Orgs operating expenses: 3 017 864 dollars

B/ Payments from Reserves to
constructions & renovations : 8 562 334 [mainly paid for CC Manor renovations, and SH UK Castle]

Purchase of properties and costs linked: 2 575 370 [mainly a parking lot in Clearwater, and a "Pink House" for Golden Era]

Royalties paid by CSI to RTC and to Authors Family Trust B: 4 632 332 (around 80% - 20 %). [Note: CSI pays $ 51000 each week to RTC for "Trademark Maintenance expenses per trademark licence", while the amount paid by CSI to Author Trust is comprised between 8 and 20000 a week for "film lease".]

Public Relations and media campaigns, plus few products to "resale":

14 409 979. [Largest sums are paid here to an unknown company called " International Communications Group", lesser ones to "Hill & Knowlton" for "public relations, and many other smaller posts.]

Investments in "Goldbullion" via Kredietbank Luxemburg : 3 355 312 [presumably gold purchase?]

Repayments of bonds, ship mortgage - refunds etc: 6 060 047 [ship mortgage for 1,25 m that year; the remaining parts being mostly an exchange of money between scientology fronts]

Bank costs [many lines are for bank costs, mostly small sums arund 30 euros; the total has not been calculated]

List scientology Two, called:

"Payments from Reserves accounts to non-reserves accounts of the same entity participating to reserves" [we could call that "internal deals"]

A/ WISE to WISE: 355000
B/ CSRT to CSRT: 989380
C/ Bridge Publications to Bridge Publications: 725826
D/ WUS to WUS: 60067
E/ CSCalifornia to CSCalifornia: 61517
F/ CSI to CSI: 49 352 432

Total of those movements
: 51 544 222.

Here, we have probably the movements of funds imposed by the 6 or more bank accounts system imposed by Hubbard to every scientology profit center. Since no payment is done between companies, or between scientology fronts, this post does not seem of importance.

[due to the lack of interest of this post, no Excel file has been done here]

List scientology Three, called

"Disbursements within Central Reserves"

Parishioners Bounced checks having been cashed later : 206 526

Ecclesiastical Guidance : 13 835 549 [main post here is the payments by FSO to CSI. They are probably the sums forced by RTC/CSI each time the WWide management sends some "missionaire" to an org, plus other costs representing the profits made by CSI and RTC on the profit centers]

Loan interests: 1 492 491 [money loans between scientology fronts; this is showing as an evidence that scientology has commercial banking functions]

Loan Repayments: 21 225 983. [Very large sums are loans repayed by Flag Ship Org -the boat Freewinds- to the Church of Scientology Religious Trust, that I could perhaps call the inside banking system]

Renovations and equipments: 18 733 010 (4 millions for "HGB" and Gold. Perhaps 90 % for renovations and 10 for equipments]

Capitalization: 20 000 [??]

Film lease equipment: 10 412

Short term loan from WUS to Bridge: 400 000

Expenses for 9th may anniversary: 100 000

Dissemination materials and E-meters: 2 601 063

Rent: 2 422 914 [mainly rents paid by WUS, CSI and WISE to BMS, Building Management Services, a scientology so-called religious management of scientology properties. This "non-profit company" could be called the Landlord of many scientology properties, accentuating the commercial aspects of the cult even between its own parts]

L/ others: non calculated -- small amounts.

Original answer from scientology to IRS:

Question 6-2(a)

Expenditure Responsibility-Central Reserves

a. For calendar year 1990, list all expenditure* (as
described below) that have been made from central reserves. The
list should include the date of the expenditures, to whom the
payment was made, by whom the payment was received, and the purpose of the expenditure. For this purpose, the term "expenditure"
includes, but is not limited to, grants, purchases, transfers or
other expenditures of assets under the control of the central
reserves committee. The list need not contain expenditures that
were less than $10,000. The $10,000 cutoff is to be disregarded if
the aggregate payments made to the same individual or organization
are $10,000 or more during calendar year 1990.

Attached as Exhibit II-6-A is a list of all "expenditures1*
from central reserves during the calendar year 1990. The following
information is being provided for each expenditure:

1. The identity of the payor
2. The identify of the payee
3. The date of the expenditure
4. The number of the disbursement voucher that documents
that expenditure
5. The purpose of the expenditure
6. The amount of the expenditure

Many disbursements from central reserves accounts consist of
transfers among accounts within central reserves. Thus these funds
actually remain within central reserves and therefore do not
constitute expenditures out of reserves accounts. Accordingly, in
order to provide you with an accurate figure of actual expenditures
from reserves, we have prepared three lists of reserves
"expenditures". The first list identifies all expenditures from
reserves accounts to other entities including commercial vendors.
(These expenditures totalled $45,323,164.55 in 1990.) The second
list identifies all payments from reserves accounts to non-reserves
accounts within the same Scientology-related entity where the
entity participates in the central reserves system. (These
transfers totalled $51,596,086.13 in 1990.) The third list
identifies disbursements within central reserves. (These transfers
totalled $69,712,359.03 in 1990.)

PS: this document has been placed under "Secrets" since scientology deal with the IRS has been kept secret for years before being disclosed. As far as I know, the documents here have not been publicly exposed before 2004

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