Pledge Card Lawsuit
Labour Owes $194,000 in Gift Duty
"About time," said Libertarianz leader and former pledge card litigant Bernard Darnton today in response to news that
Labour had handed $824,524 over to the Parliamentary Service.
"Of course, with the pledge card spending retrospectively legalised last year, there was no legal debt to be paid. The
payment must therefore be a gift."
Greens co-leader Jeanette Fitzsimons agrees. When the Greens handed $87,000 over to the Parliamentary Service in
February she said the payment was "a gift, not a debt." [1]
Darnton added, "A gift of this magnitude must be subject to gift duty." Using Inland Revenue's gift duty guide (IR 194),
Darnton calculated the gift duty Labour owes as just under $194,000.
"This is a mess of their own making. If they'd just admitted that they'd taken the money illegally and paid it back in
the first place there would be no question of this extra charge but they refused to admit they did wrong and then went
and changed the rules. This $194,000 is really an arrogance surcharge.
"I expect Labour to announce that they will take their tax obligations as seriously as they demand other, more
productive, New Zealanders to."
ENDS