Memo to Little: Iwi Already Pay No Tax

The Taxpayers' Union is querying Labour Party leader Andrew Little's comments at Waitangi that New Zealand should consider allowing Maori to make their own laws, including tax laws, in reference to rules applicable to Native American tribal lands. Jordan Williams, Executive Director of the Taxpayers' Union says:

"Like many New Zealanders, Mr Little may be surprised to learn that iwi do not currently pay income tax, even on profits of their commercial investments."

"New Zealand is quite unique in the Commonwealth in allowing a type of group defined by blood to qualify as 'charitable' and therefore not pay income or company tax."

"New Zealand's taxation regime is even more generous to iwi than the rules applicable to Native American tribes. Here, iwi pay no tax regardless of how income is derived while for Native American tribes only some types of income (usually those derived on native lands) are exempt from paying federal tax."

"There are arguments that the public-good iwi provide justifies the charitable exemption to tax. How that can be extended to commercial entities such as Shotover Jet, owned by Ngai Tahu, is another question entirely."

ENDS

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