David Clark
Revenue Spokesperson

9 June 2014

John Banks’ legacy alive and well

The Government has used a Ministerial press release to announce it has snatched millions of dollars unlawfully from bodies corporate, Labour’s Revenue spokesperson David Clark says.

A statement issued by Revenue Minister Todd McClay says the Government is cancelling registration for those who have been GST registered as of last Friday. This means double-taxation for affected bodies corporate.

“The Government is acting illegally. By announcing the forfeit of tax credits, the Minister is purporting to levy tax without Parliamentary authority.

“Robert Muldoon used to announce policies one day and legislate for them the same night. His approach looks positively angelic by comparison.

“Todd McClay is saying he won’t bother Parliament any more when it comes to law changes. He says he will only introduce legislation validating his actions if re-elected. This is absurd.

“The move echoes disgraced MP John Banks’ loose approach to the laws that govern elected politics.

“Up until this point in history legislation change required Parliamentary approval. This arrogant Government believes it is above the law, announcing taxation by press release.

“Make no mistake - talk of ‘clarity’ and ‘fairness’ is simply spin. The Tax Commissioner is independent. Her job is to apply the law and the law is clear.

“Inland Revenue’s top lawyer Martin Smith published his ‘considered view’ confirming in May 2013 that GST registration is a requirement for bodies corporate.

“To deregister bodies corporate in this manner is a serious challenge to democracy.

“Todd McClay is out of his depth. The Beehive’s ninth floor needs to intervene to sort this mess out,” David Clark said.

ENDS

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