Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

John Tamihere Does Not Face Any Tax Liability

22 December 2004

White Report Clears Tamihere

John Tamihere Does Not Face Any Tax Liability

John Tamihere today released his legal advice on tax matters as follows:

"It has been correctly reported that the White report cleared John Tamihere of any failure to pay tax on payments he received from the Waipareira Trust. Unfortunately there have also been some incorrect suggestions that John Tamihere may face some liability for the accidental omission of some payments in the tax returns filed by his accountant.

John Tamihere relied on the IR 12 Tax Certificate given to him at the end of the year by the Trust. He gave that return to his accountant and asked him to complete the tax return. That is entirely reasonable and is exactly what any other taxpayer would have done. Unfortunately, the Trust omitted the bonus from the IR 12 certificate and that omission was therefore carried through into John Tamihere's tax return.

There is no basis at all for the suggestion that John Tamihere breached his tax obligations in any way and the White report does not say that he did. The relevant issues noted in the report are:

- The payment of tax was the Trust's responsibility and not John Tamihere's.

- The Trust failed to include the bonus payment in the IR 12 certificate it prepared and, consequently, it was not included in John Tamihere's tax return

- John Tamihere's tax returns were completed and filed on his behalf by a chartered accountant

- John Tamihere was not aware that the IR 12 certificate was inaccurate. He simply relied on it in the same way that any other taxpayer would.

- John Tamihere did not benefit financially from the accidental omission and had no possible motive to do so deliberately

- As a PAYE taxpayer, John Tamihere was not required to file a tax return at all. He did so voluntarily

Part of the evidence considered by Mr White was a statement by Marsden Robinson, one of New Zealand's most experienced tax practitioners. Mr Robinson's conclusions are quoted briefly at para 6.22 of the White report. Mr Robinson's view was that:

"I would not expect an employee, in the normal course of events, ever to check the accuracy of an IR12 provided to him by his employer. Indeed, I cannot recall any client of mine ever doing so ¡K

In summary, I believe the conduct of Mr Tamihere and (his accountant) was reasonable and prudent and, in the case of Mr Tamihere, that he acted in the same way that I would expect most taxpayers to act in the circumstances."

A taxpayer does not commit an offence by accidentally omitting a payment from his tax return. That is only unlawful when it is done deliberately and knowingly.

There has nonetheless been some suggestion that it is possible that the Commissioner of Inland Revenue may take some action over the accidental omission of the bonus from John Tamihere's tax return. That is not correct and it is inconceivable that the IRD would take any action over a minor and accidental omission by an employee, which was caused by the employer's error. The White report itself refers to the possibility of any action by the IRD as "remote" (para 6.25)."

ENDS


© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Peters/Ardern Triumph

There are a lot of good reasons to feel joyful about this outcome. It is what so many young voters – the best hope for the country’s future – wanted.

Far more important than the implications for the Economy Gods ( is the dollar up or down? ) last night’s outcome will also mean many, many vulnerable New Zealanders will have a better life over the next three years at least.

Yet the desire for change was in the majority, across the country..>>>More


Reaction

Labour on its agreement |Peters: Post-Election Announcement Speech | Greenpeace “cautiously hopeful” about new Government | ACT - Madman on the loose | E tū ecstatic | Chamber welcomes the outcome | Greens on their joining Govt | EDS welcomes new govt | Immigrant groups worry | Feds ready to engage new coalition government | Labour Ministers of the Crown announced

 

Climate: Increasing Greenhouse Emissions Hit NZ

New Zealand is seeing impacts of excess greenhouse gas emissions in our climate and oceans, according to the latest national report from the Ministry for the Environment and Stats NZ about the state of the atmosphere and climate…More>>

ALSO:


Wellington.Scoop: Arrests At Blockade Of "Weapons Expo"

“We encourage people in Wellington to get down to the Westpac Stadium now for a day of awesome peace action. There will be plenty of food, music and activities to keep us sustained through the day.” More>>

ALSO:

Rorschach Restructuring: PSA Taking Inland Revenue To Court Over Psychometrics

The Public Service Association will be seeing Inland Revenue in Employment Court over its intention to psychometrically test employees reapplying for their roles at the department as part of its controversial Business Transformation restructuring plan. More>>

ALSO:

Nuclear Disarmament: Nobel Peace Prize 2017 Awarded To ICAN

Congratulations from iCAN Aotearoa New Zealand to international iCAN, the other iCAN national campaigns and partner organisations, and the countless organisations and individuals who have worked so hard for a nuclear weapons-free world since 1945. More>>

ALSO:

Expenses: Waikato DHB CEO Resigns

An independent inquiry has identified that Dr Murray had spent more than the agreed $25K allocated for relocation costs, and other unauthorized expenses involving potential financial breaches of the chief executive’s obligations. More>>

ALSO:

Wellington.Scoop: Sad About The Trolley Buses?

The Regional Council’s MetLink is today spending money to tell us that it really loves Wellington’s trolley buses, even though they’re all being taken off our roads by the end of this month. More>>

ALSO:

Post-Election: Preliminary Coalition Talks Begin

New Zealand First will hold post-election preliminary discussions in Wellington with the National Party tomorrow morning and the Labour Party tomorrow afternoon. More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election