Jordan Williams of the NZ Taxpayers Union has called for this outrageous unfairness to cease.
“While politicians complain about overseas companies like Google and Facebook not paying their fair share of tax, everyone is turning a blind eye to these enormous tribal and religious empires which pay almost no tax, despite only a tiny proportion of the profits going back into the communities they are meant to serve. It is a disgrace.”
“Even of those parts of the group which pay tax, most are subject to a lower ‘Maori authority’ rate – something National said they’d get rid when they were in opposition.”
“Charitable companies, whether they are owned by a tribe, church, or any other group deemed ‘charitable’, should only have the tax privilege based on the actual amount that is spent on charity. Instead, companies like Go Bus and Sanitarium are given a 28% competitive advantage because they don’t pay any company tax, even if all the profits are reinvested. That’s wrong, and it’s about time people started taking notice.”
It’s is left to pressure groups like Hobson’s Choice and the NZ Taxpayers Union to speak out against this manifest and ugly wrong being foisted on the nation’s weakest.
The tribe reported a net profit of $137.8 million on the same day that Hobson’s Pledge released a poll that showed that 68.8 percent of New Zealanders oppose tax exemptions for tribal businesses.
Distribution, touted as a record, was just $11.06 million.
The group paid only $12,000 of income tax in the previous financial year, which is possible because most of the tribe’s commercial investments can trade as tax-exempt charities, even if no profits are distributed or spent on the tribe’s charitable activities, Dr Brash said.
They would have paid around $39 million in tax if taxed at the normal corporate tax rate of 28 percent like other companies, Dr Brash said.