Monday, 30 March 2009

Challenging the Tax-Exempt Status that Aids Israeli Settler Groups

Source
By Will


Following a post on Mondoweiss and a David Ignatius column in the Washington Post on how groups that support Israeli settlers receive tax-exempt status, the American-Arab Anti-Discrimination Committee filed an official complaint with the Treasury Department.

ADC's press release indicated the group filed

multiple administrative complaints with the US Department of the Treasury, including the Internal Revenue Service (IRS), requesting investigations into the activities of organizations claiming tax-exempt status under section 501(C)3 of the US Tax Code yet allegedly raising funds for the development of illegal settlements in the occupied West Bank. Among other allegations, the ADC complaints allege that these organizations are using assets and income in direct violation of their addressed purpose, and to support illegal and terrorist activities abroad.
This was not the first time criticism for giving tax breaks to donations aiding Israel's colonialism in Palestinian territories mounted. Last year, Reuters reviewed U.S. tax records and "found 13 tax-exempt organizations openly linked to settlements that have raised more than $35 million in the last five years alone."

ADC pointed out the settlements violate international law, is illegal under US law, and the settlements violate "stated US policy toward the Arab-Israeli conflict." The United States must stop transferring tax revenue to the settlements in the form of tax breaks for donations to settler groups. It makes no sense and defies basic norms of policy compliance.

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