Posted on 09/23/2003 2:59:54 AM PDT by kattracks
(CNSNews.com) - A watchdog group that monitors non-profit organizations has filed a complaint with the Internal Revenue Service, alleging that the environmental group Greenpeace is "knowingly and systematically violating U.S. tax laws."
Public Interest Watch of Washington, D.C., formally filed the IRS complaint Monday, asking the federal agency to investigate Greenpeace's non-profit financial practices.
"The most obvious, blatant violator of the non-profit [tax] law was Greenpeace. They are mooching off the taxpayer every year," said Mike Hardiman, executive director of Public Interest Watch (PIW).
According to PIW's report, the tax-subsidized division of Greenpeace failed to follow federal non-profit tax guidelines regarding its educational and charitable activities.
The PIW report maintains that Greenpeace diverted over $24 million between its various entities over a three-year period for activities that did not qualify under federal law as tax exemptions. The report said Greenpeace engaged in such non-tax-exempt activities as blockading a naval base to protest the war in Iraq and padlocking the gates of a government research facility.
"Greenpeace has devised a system for diverting tax-exempt funds and using them for non-exempt - and oftentimes illegal - purposes. It's a form of money laundering, plain and simple," Hardiman explained.
"This is a clear violation of the law," Hardiman added.
But Greenpeace fired back at Public Interest Watch, calling the charges "unwarranted and unsubstantiated."
"It's completely false and without merit," said Melanie Janin, Greenpeace USA's spokeswoman.
"Greenpeace is considering this an attack by a fringe group," Janin added.
In its response to PIW's allegations, Greenpeace USA stated that it "acts in full compliance with all relevant U.S. and state laws."
Greenpeace also indicated it might pursue legal action against PIW over the accusations.
"Given the severity of these accusations by Public Interest Watch, Greenpeace USA is now considering its various legal options," the statement read.
Greenpeace USA also accused PIW of having a "clear anti-NGO (non-governmental organization) agenda," pointing to the recent lawsuits by PIW against groups with similar political philosophies to Greenpeace, like the Rainforest Action Network, the Dogwood Alliance and the anti-war group, Moveon.org.
"While PIW will not disclose its funding sources, Greenpeace strongly suspects that PIW is funded by American corporations, many of which may be under scrutiny for anti-environmental behavior by environmental organizations like Greenpeace," the press release stated.
Hardiman rejected Greenpeace's call for his group to reveal its funding sources.
"I don't have to reveal my funding because I am not mooching off the taxpayer. Contributions to Public Interest Watch are not tax-deductible," Hardiman said.
Hardiman also denied that his group only goes after environmental groups like Greenpeace, pointing to several conservative organizations against which PIW has filed IRS petitions.
"Greenpeace selectively only chose the lefty groups we went after. We also went after conservative groups as well," Hardiman said. He mentioned the Pat Buchanan-led group, the American Cause, and the anti-immigration group, the Federation for American Immigration Reform, as examples of conservative organizations PIW has targeted.
Hardiman also shrugged off Greenpeace's threatened lawsuit against PIW.
"Bring them on. That is what I say. Bring them on. Greenpeace will just embarrass itself further," Hardiman said.
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