Do Gaza Blockade Runners Violate U.S. Law?

 

ISRAPUNDIT

by Bill Levinson

We received a forwarded E-mail from the 501(c)(3) tax exempt Council for the National Interest FOUNDATION that says in part,

Dear CNI Volunteer in Place, We know that you have probably received our email about the “Boat Brigade” from Lebanon to Gaza. Currently the boats are scheduled to leave on Friday, July 2nd. If you are interested in joining this new attempt to break the siege on Gaza all expenses will be paid. The boat will likely depart from the port of Tarabulus on Friday July 2nd.

If proven, this could easily be cause for revocation of the Council for the National Interest’s 501(c)(3) tax exemption because or “activities that are illegal or contrary to public policy”

Violation of constitutionally valid laws is inconsistent with exemption under IRC 501(c)(3). As a matter of trust law, one of the main sources of the general law of charity, planned activities that violate laws are not in furtherance of a charitable purpose. “A trust cannot be created for a purpose which is illegal.

Does conspiracy to violate the laws of another country violate the U.S. Code? The Shurat HaDin Israel Law Center thinks so:

I am writing to bring to your attention to a serious matter regarding the flotilla and what might have been a conspiracy to violate the U.S. Neutrality Act, 18 U.S.C. §960, regulations of the Internal Revenue Service and an attempt to aid & abet the Palestinian terrorist organization Hamas, which has occurred within the United States. It has come to our Law Center’s attention that the radical pro-Hamas organization, the Free Gaza Movement (“FGM”), has been raising funds for its extremist activities within the United States. The FGM was one of the driving forces behind past efforts to run the Gaza flotilla in 2008 and its members directed the current Gaza flotilla campaign from Cyprus. These activities would appear to be a violation of the U.S. Neutrality Act which is codified in section 960 of title 18 of the U.S. Code and  provides:
“Whoever, within the United States, knowingly begins or sets on foot or provides or prepares a means for or furnishes the money for, or takes part in, any military or naval expedition or enterprise to be carried on from thence against the territory or dominion of any foreign province or state, or of any colony, district, or people with whom the United States is at peace, shall be fined under this title or imprisoned not more than three years, or both”.
This past week US Vice- President Joesph Biden declared that the Israeli blockade of the Gaza Strip is lawful and pursuant to international law.

In addition, it is a criminal violation of the U.S. Code to smuggle goods into a foreign country.

Any person owning in whole or in part any vessel of the United States who employs, or participates in, or allows the employment of, such vessel for the purpose of smuggling, or attempting to smuggle, or assisting in smuggling, any merchandise into the territory of any foreign government in violation of the laws there in force, if under the laws of such foreign government any penalty or forfeiture is provided for violation of the laws of the United States respecting the customs revenue, and any citizen of, or person domiciled in, or any corporation incorporated in, the United States, controlling or substantially participating in the control of any such vessel, directly or indirectly, whether through ownership of corporate shares or otherwise, and allowing the employment of said vessel for any such purpose, and any person found, or discovered to have been, on board of any such vessel so employed and participating or assisting in any such purpose, shall be fined under this title or imprisoned not more than two years, or both. It shall constitute an offense under this section to hire out or charter a vessel if the lessor or charterer has knowledge or reasonable grounds for belief that the lessee or person chartering the vessel intends to employ such vessel for any of the purposes described in this section and if such vessel is, during the time such lease or charter is in effect, employed for any such purpose.

The context seems to involve avoiding the payment of customs duties, although the mechanism for such evasion–smuggling–involves evasion of customs inspections. The Gaza flotilla does have the option of docking at an Israeli port and submitting its cargo to inspection for contraband (weapons, munitions, and so on), and it is quite possible that efforts to evade such inspection constitute smuggling. If so, the 501(c)(3) tax exempt Council for the National Interest FOUNDATION appears to be involved in a conspiracy to commit smuggling and/or a violation of the Neutrality Act, which is prima facie cause for revocation of its 501(c)(3) tax exemption.

We are not an attorney and cannot give legal advice so the best course of action is to forward the Council for the National Interest FOUNDATION’s E-mail with Form 13909 to the Internal Revenue Service at

* Mail to IRS EO Classification, Mail Code 4910DAL, 1100 Commerce St., Dallas, TX 75242-1198,
* Fax to 214-413-5415, or
* Email to eoclass “at” irs.gov.

Form 13909 is relatively new (2009) and is for formal complaints against tax-exempt entities. Causes for complaint include:

“Income/assets are being used to support illegal or terrorist activities” which could apply to the Council for the National Interest FOUNDATION;

“Organization is involved in a political campaign” which could apply to the Council on American Islamic Relations’ support for Barack Obama over John McCain in the 2008 election.