THE LATERAN TREATY:
The Lateran Treaty was signed on 2/11/29 and ratified on 6/7/29 was an agreement between the Kingdom of Italy and Pope Pius VI. The treaty recognized Vatican City as an independent state under the sovereignty of the Holy See.

The 1st section of the treaty gave The Vatican jurisdiction over all Catholic Organizations in Italy. These corporations were called “ecclesiastical corporations” and were exempt from taxation and audit.
UNDER THIS TREATY THE VATICAN COULD CREATE AS MANY CORPORATIONS AS IT WANTED!