Media Statement
For immediate release
Friday, 4 June, 2004

Copeland: Back tax backdown common sense

Common sense has prevailed in Inland Revenue's backing down on its earlier decision to bring in back taxes from lowly paid Barnardos caregivers, United Future's Gordon Copeland said today.

"This is exactly what I suggested should happen this morning, and I am delighted to see that some sense of fair play will be brought to bear," he said.

IRD had previously announced it would impose a retrospective tax bill on Barnardos home child caregivers, dating back to April last year. It this afternoon promised to work with Barnardos to introduce the taxes with minimal disruption, but with no back taxes.

"When this is done, the Government should lift the donations rebate to organisations such as Barnardos from $630 a year to $5000 a year, allowing Barnardos to increase their caregivers' pay rates to at least ensure that their net take home pay is maintained," Mr Copeland, United Future's revenue and charities spokesman, said.

Ends.

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