Courts rule Moscow Tax Office Financial Reports Illegal

The Church of Scientology of Moscow and the Hubbard Humanitarian Center, also in Moscow, have won a series of important rulings against the Tax Office in Moscow. The two organizations documented glaring inadequacies, inaccuracies and even illegalities in financial reports the Tax Office had prepared regarding their activities.

On November 9, 2000, the Arbitration Court in Moscow determined that the Church had paid all due taxes, that the Tax Office in its report had improperly treated all debits as credits, and that the report was illegal, inaccurate and improper. The Court cancelled the assessments against the Church. The Tax Office appealed to the Federal Arbitration Court, which rejected the appeal on February 19, 2001, upholding the earlier instance decision.

Likewise, the Arbitration Court ruled in favor of the Hubbard Humanitarian Center of Moscow on September 12, 2000. Again, the Court declared the Tax Office’s financial report inaccurate and canceled all assessments. The Court of Appeals rejected the Tax Office’s appeal on November 13, 2000. The Tax Office again appealed, and lost, with Federal Tax Court ruling in favor of the HHC on January 22, 2001.

Separately, the chief accountants for both organizations filed suit against the Tax Office over its financial reports. The HHC’s accountant won his case before the Moscow City Court in October 2000, and the Church’s accountant won, in the same court, on December 14, 2000. The Tax Office has not appealed either decision.