- A Mormon who used to work at the investment division of the Church of Jesus Christ of Latter-day Saints alleged in a whistleblower complaint that the religious organization amassed billions of dollars intended for charitable purposes and dodged paying taxes on them.
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According to The Washington Post, which obtained a copy of the complaint lodged with the IRS, the funds were held in accounts dedicated to charitable causes, and the investment division, Ensign Peak Advisors, was listed as a nonprofit organization. This allowed the investment branch to be largely exempt from paying taxes on their income.
- According to the complaint, the Mormon Church collects about $7 billion each year on average in contributions from its members via a practice called tithing, in which members of the church contribute 10 percent of their income to be used to support the establishment and its missions.
- David Nielsen, who filed the complaint at the end of November to the IRS, claimed that Ensign did not operate exclusively for religious and charitable purposes, which is in violation of its designation as a non-profit.
- The complaint added that Roger Clarke, the president of Ensign, claimed that the investment branch collected the funds in preparation of "the second coming of Christ."
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The president of an investment company affiliated with the Mormon church claimed that it amassed about $100 billion in tax-exempt accounts in preparation of "the second coming of Christ," according to a whistleblower complaint lodged with the Internal Revenue Service (IRS) obtained by The Washington Post.
According to the complaint, the Church of Jesus Christ of Latter-day Saints collects about $7 billion each year on average in contributions from its members via a practice called tithing, in which members of the church contribute 10 percent of their income to be used to support the establishment and its missions.
But according to the complaint, Roger Clarke, the president of the church-affiliated investment division, Ensign Peak Advisors, said that the funds would be used in the event of the "second coming of Christ."
"Would you pay tithing instead of water, electricity, or feeding your family if you knew that it would sit around by the billions until the second coming of Christ?" David Nielsen, a former senior portfolio manager in the church's investment division, said in the 74-page complaint filed at the end of November, according to The Post.
In the complaint, Nielsen claimed that Ensign did not operate exclusively for religious and charitable purposes, in violation of its designation as a "supporting organization and integrated auxiliary of the Mormon Church."
Since the funds were held for a charitable cause, Ensign was listed as a nonprofit, which exempts the church from paying taxes.
According to the Post, church leaders may have used surplus funds to "prop up a pair of businesses," according to The Post.
"In a declaration signed under penalty of perjury, Nielsen urges the IRS to strip the nonprofit of its tax-exempt status and alleges that Ensign could owe billions in taxes," The Post reported. "He is seeking a reward from the IRS, which offers whistleblowers a cut of unpaid taxes that it recovers."
This newly emerged complaint contrasts remarks that Bishop Gérald Caussé, the presiding bishop at the Mormon church, gave last year in regards to how the church uses collected funds, which is largely shrouded in mystery.
"[The Church of Jesus Christ of Latter-day Saints] pays taxes on any income it derives from revenue-producing activities that are regularly carried on and are not substantially related to its tax-exempt purposes," Caussé said last year, according to The Post.
Read the full article at The Washington Post »
- Read more:
- More than a hundred years ago, Mormons — including Mitt Romney's family — fled to Mexico so they could practice polygamy. They've been plagued by cartel violence, infighting, and murder ever since.
- The Mormon Church has been accused of using their sexual abuse hotline to quiet victims and stave off potential lawsuits
- Mexico massacre unites Mormon sects, even their exiles
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