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Title : Rev and Tax: Kamalen Karidat exempt
link : Rev and Tax: Kamalen Karidat exempt
Rev and Tax: Kamalen Karidat exempt
Deacon Tenorio did not file taxes at the Department of Revenue and Taxation because he was under the impression that it was not required for Kamalen Karidot to file taxes. The conclusion from the Department of Revenue and Taxation publicly revealed that Deacon Tenorio was correct. This is why Father Mike Crisostomo should not be so quick to jump into the media and start talking negatively about his predecessor. It is always prudent to wait until the investigation is over. News report stated:Crisostomo, when sought for comment on Camacho's letter, said a statement would be forthcoming. As of press time Wednesday, no statement has been received.
Tony Diaz, communications director for the Archdiocese, said Wednesday afternoon that the Archdiocese reserves comment until the Kamalen Karidot board meets sometime in January 2018.
As for CCOG, their complaint never had anything to do with filing taxes. They made a very serious allegation against Archbishop Apuron and Deacon Tenorio. They alleged that Archbishop Apuron and Deacon Tenorio used the donations from Kamalen Karidot for their personal use. Where is the evidence? According to the Pacific Daily News:
Department of Revenue and Taxation Director John P. Camacho says Kamalen Karidat isn't required to file an annual financial information because it's an "integrated auxiliary of a church." The Concerned Catholics of Guam disagrees.
David Sablan, Concerned Catholics president, on Wednesday said the Internal Revenue Service defines "integrated auxiliary" as an entity that gets financial support primarily from the church, and not from the public or government.
Kamalen Karidat gets monetary and in-kind donations from the general public and has since it was created in 1994 by Archbishop Anthony S. Apuron to help feed the poor and homeless.
Father Mike Crisostomo has said the Archdiocese of Agana doesn't financially support Kamalen Karidat. Archbishop Michael Jude Byrnes appointed Crisostomo to take over Kamalen Karidat on March 1.
On Dec. 11, the archdiocese took over the soup kitchen and other charitable work of Kamalen Karidat and renamed it Ministries to the Homeless. Kamalen Karidat's bank assets, less than $200,000, were frozen until the board meets in January 2018.
Concerned Catholics has alleged mismanagement and possible fraudulent activities at Kamalen Karidat, adding that Rev and Tax, the Office of the Attorney General and the U.S. Attorney's Office should investigate. Sablan said these local and federal agencies should bring criminal charges against Apuron and Deacon Frank Tenorio if fraud and abuse are uncovered.
Concerned Catholics said Kamalen Karidat couldn't account for cash and in-kind donations and expenditures since 1994 because of a lack of records.
'Not required'
Camacho clarified the filing requirements of Kamalen Karidat in a Dec. 19 letter to Crisostomo,
"A review of information on file with this department indicates that, as a thrift shop offering used goods for sale at nominal prices as part of its charitable mission under the Archdiocese of Agana, Kamalen Karidat Inc. is considered an integrated auxiliary of a church. Therefore, Kamalen Karidat is not required to file 990 returns," Camacho wrote.
A Form 990 is used by nonprofit organizations to publicly disclose their revenue and expenses.
Crisostomo, when sought for comment on Camacho's letter, said a statement would be forthcoming. As of press time Wednesday, no statement had been received.
Tony Diaz, communications director for the Archdiocese, said Wednesday afternoon that the Archdiocese reserves comment until the Kamalen Karidat board meets sometime in January 2018.
The term "integrated auxiliary of a church," as defined by IRS, refers to a class of organizations that are related to a church or convention or association of churches, but aren't such organizations themselves.
The three requirements to meet the definition, set by IRS, are:
- Be described both as an Internal Revenue Code section 501(c)(3) organization and be a public charity under Code section 509(a)(1), (2) or (3);
- Be affiliated with a church or convention or association of churches; and
- Receive financial support primarily from internal church sources as opposed to public or governmental sources.
Attorney Ray Cruz Haddock, an expert on tax laws, on Wednesday said Kamalen Karidat could fall under the definition and its purposes of feeding the poor would seem consistent.
Review
The Pacific Daily News last week submitted a Sunshine Act request, asking Rev and Tax to provide Kamalen Karidat's annual tax forms from 1994 to 2016. Camacho, in his response to the request, stated there are no such filings by the organization.
Camacho also said Rev and Tax was reviewing Kamalen Karidat's tax-exempt status.
Camacho, in his letter to Crisostomo, said every organization exempt from federal income tax under section 501(a) must file an annual exempt organization return, except:
- A church, an interchurch organization of local units of a church, a convention or association of churches; or
- An integrated auxiliary pf a church -- a charitable organization affiliated with a church.
Concerned Catholics' Sablan said Kamalen Karidat is an entity separate from the Archdiocese of Agana or the Catholic Church. He said the only link to the church is that the board has clergy members, including Apuron and Deacon Frank Tenorio.
Apuron is under Vatican canonical trial. He left Guam in May 2016 after former altar boys publicly accused him of raping or sexually abusing them in Agat in the 1970s. Apuron also faces clergy sex abuse lawsuits in federal court, and a libel suit in local court.
In defense of Deacon Tenorio
Former Attorney General Douglas Moylan, one of the 19 original board members of Kamalen Karidat, on Wednesday said he knows Deacon Tenorio personally to be an honest, considerate and thoughtful servant of the church community.
"I would be very surprised if there was any intentional wrongdoing on the part of Deacon Tenorio, and hope that the finances be reviewed in light of the dedication, charity and giving that those who have run Kamalen Karidat have given to those persons and families most needing in our community," Moylan said.
Moylan said while he was one of the original Kamalen Karidat board members, he was replaced sometime thereafter. He said because it was a long time ago, he recalls attending only one or a few, if any, board meetings.
"It was my further understanding that this organization was an arm of the Catholic Church on Guam, under the direction of the Archbishop," Moylan said.
Guam annual report
Camacho said Kamalen Karidat as a nonprofit corporation registered and operating on Guam is required to file an annual report pursuant to the Guam Code. Crisostomo stated earlier that for whatever reason, Kamalen Karidat hadn't filed an annual report after 2006.
The report shows the date of an organization's incorporation, its business office and the names of its directors and principal officers, among other things.
When Crisostomo took over Kamalen Karidat in March, the priest worked with Rev and Tax and others to bring the corporation into compliance with the requirement.
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