Sunday, October 24, 2004

The trust paid no tax on Tamihere's "koha"

I find if very hard to believe that John Tamihere's $195,000 payment was a koha particularly as koha are for covering of costs of hosting people at a Marae. So when was the Marae visit? Why wasn't tax paid on it? And why are Maori paying a "koha" of $195,000?

We know this payment is as much of a koha as I believe tax would not have been paid on it had this issue not been on the front pages and in the blogs. Koha is a public gift, this payment was a private $195,000 golden handshake. Now Tamihere is calling it a golden koha. Cullen and Clark will not be able to defend that "koha" comment.

Anyway the tax on the money still has to be paid by the Waipaereira Trust. And I'm sure Tamihere KNEW no tax was paid on the money, just as much as the Waipaereira Trust states that it is not a koha..

How many tax-payer funded koha have been paid without a "koha" to the IRD? Now there's something for Rodney Hide to investigate. Tax has to be paid on ALL koha.

1 comment:

Anonymous said...

Just hairsplitting - koha is *usually* a gift made when visiting marae, but certainly not always. For instance, if you went to a tangi - even not on marae - you might consider contributing to help out the bereaved family by giving them a gift (or koha) of money.

The tikanga is not nearly as clear cut as the elder makes it sound as far as I know.

Tax does not need to be paid on all koha, however it does (such as in this instance) have to be paid on koha where a service has been performed in return. Again, using the above example, a koha at a tangi is not likely to be taxable. But if it were paid to a kapa haka group performing at a meeting, then yes, tax is likely to be payable.

Lastly, when I have been on marae or other situations where I have given koha it is certainly not public. It should be done discreetly. It would be like flashing around $100 bills in your offering at a presbyterian church.

Having said all that, you are right that this should be investigated thoroughly.