Half a million customers and they don't pay tax.Hands up. I know next to nothing about tax law but it seems to me that Ngai Tahu Tourism is a business or a conglomeration of businesses. The profits are returned no doubt to the tribe but how is that any different from a group of shareholders?
According to Te Puni Kokiri, Charitable trusts are normally formed to undertake charitable activities and are less suitable for commercial activities.
Ngai Tahu Tourism doesn't pay tax because it is a charitable trust. Please enlighten me if I am missing something significant here. Is this some sort of affirmative action programme?
2 comments:
Sorry to be off subject but,...8.6 million profit and a charitable trust, ... I wonder how much of the profit goes to combating child abuse amongst Maori.
I thought the changes to the recent law taxed businesses as businesses regardless of their charitable purpose if their primary component was trading?
Used to set these things up all the time for white folk but thought the law changed?
Perhaps its still ok if you are Mmmmmmaaaaaori.
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