Post by Kiwi Frontline on Dec 8, 2018 6:55:09 GMT 12
NGAI TAHU’S TAX EXEMPT CHARITABLE STATUS
Commentary: A response to Ngai Tahu’s opinion on their commercial trading activities and income-tax exempt charitable status
It is interesting to read Ngai Tahu’s defence on their website of their charitable status and the income tax exemption that applies to its commercial empire, which begins with the statement that “[t]he commercial success of Ngai Tahu needs no introduction. A $170 million settlement in 1998 has, in the space of 20 years, been turned into $1.3 billion (give or take a dollar or two).”[1] What then is the issue about Ngai Tahu’s income tax exempt status as a charity, and why the need to defend their charitable status? The phenomenal rate of growth of their empire has been achieved through the significant acquisition of many previously income-tax paying for-profit entities which overnight, because of the income tax exempt status of Ngai Tahu Charitable Trust as the sole shareholder, also claims that fiscal privilege – yet those activities are unrelated to the charitable purposes of the trustee. Over the past 20 years, there have been, at one time or another, 70 limited liability companies, 18 joint ventures and 3 associate companies under Ngai Tahu control. Currently Ngai Tahu has 39 trading entities that are registered as tax charities; some entities have been merged with others, or do not appear to be now trading. Nevertheless, today the reality is that Ngai Tahu operate a substantial commercial operation that the taxpayers of New Zealand subsidise. Disappointingly, politicians of all but the ACT party are fearful of addressing the income-tax exempt status of iwi-owned commercial operations because of the risk of accusations of Maori-bashing. It is indeed disappointing that in New Zealand today that we cannot openly discuss tax policy issues that affect us all without fear of such baseless accusations. Since 1967, numerous tax reviews have argued for the taxation of such activities. At this stage, the Tax Working Group appears to be treading lightly around the issue, having been captivated by the influence of an Australian tax review rather than listening to our own experts from the past, as well as ignoring how this issue is addressed in a pragmatic manner in the UK.......
Continue reading Michael Gousmett’s NZCPR guest commentary here > www.nzcpr.com/ngai-tahus-tax-exempt-charitable-status/#more-28100
Commentary: A response to Ngai Tahu’s opinion on their commercial trading activities and income-tax exempt charitable status
It is interesting to read Ngai Tahu’s defence on their website of their charitable status and the income tax exemption that applies to its commercial empire, which begins with the statement that “[t]he commercial success of Ngai Tahu needs no introduction. A $170 million settlement in 1998 has, in the space of 20 years, been turned into $1.3 billion (give or take a dollar or two).”[1] What then is the issue about Ngai Tahu’s income tax exempt status as a charity, and why the need to defend their charitable status? The phenomenal rate of growth of their empire has been achieved through the significant acquisition of many previously income-tax paying for-profit entities which overnight, because of the income tax exempt status of Ngai Tahu Charitable Trust as the sole shareholder, also claims that fiscal privilege – yet those activities are unrelated to the charitable purposes of the trustee. Over the past 20 years, there have been, at one time or another, 70 limited liability companies, 18 joint ventures and 3 associate companies under Ngai Tahu control. Currently Ngai Tahu has 39 trading entities that are registered as tax charities; some entities have been merged with others, or do not appear to be now trading. Nevertheless, today the reality is that Ngai Tahu operate a substantial commercial operation that the taxpayers of New Zealand subsidise. Disappointingly, politicians of all but the ACT party are fearful of addressing the income-tax exempt status of iwi-owned commercial operations because of the risk of accusations of Maori-bashing. It is indeed disappointing that in New Zealand today that we cannot openly discuss tax policy issues that affect us all without fear of such baseless accusations. Since 1967, numerous tax reviews have argued for the taxation of such activities. At this stage, the Tax Working Group appears to be treading lightly around the issue, having been captivated by the influence of an Australian tax review rather than listening to our own experts from the past, as well as ignoring how this issue is addressed in a pragmatic manner in the UK.......
Continue reading Michael Gousmett’s NZCPR guest commentary here > www.nzcpr.com/ngai-tahus-tax-exempt-charitable-status/#more-28100