Charity regulators have moved to deregister high-profile social services provider Waipareira, concluding a long-running investigation into its funding of chief executive John Tamihere’s political campaigns.
The decision follows a four-year investigation by Charities Services into Waipareira that has seen settlements reached and breached, accusations of racism, and Charities Services staff complain about bullying behaviour from Waipareira’s lawyers.
News of looming deregistration and the loss of its tax-free status broke in Waipareira’s own financial statements filed this week to the Charities Register, which end with a note stating: “On 23 September 2024, the trust received a formal notification from the Charities Registration Board (CRB) of its intention to make a decision to deregister the charitable entity Te Whanau O Waipareira Trust.”
No other decision was realistically possible.
Waipareira effectively made hundreds of thousands of dollars of donations to TPM’s 2020 election campaign and Tamihere’s own tilt for the Auckland mayoralty in 2019.
You can’d do this, and be a charity. They knew this, but did it anyway.
The DIA statement said deregistration would see Waipareira revert to its previous status as a charitable trust, which faced no restrictions on political activity but came with tax consequences.
“The trust would also be able to continue its association with or support for political parties and candidates free from restrictions and obligations arising under the act. It may have tax implications for the trust, however this is a matter for Inland Revenue,” the statement said.
Charitable trusts face an income tax of 28%.
Charities law stipulates that deregistered charities need to distribute their assets to organisations that are registered or face a tax levied across accumulated assets. Based on Waipareira’s reported financial position, this one-off tax could amount to $30m.
It is a shame as historically Waipareira has done many good things for the communities they serve. But to use money given to them by taxpayers for charitable purposes, and channel it to political campaigns was just wrong.
David Farrar runs Curia Market Research, a specialist opinion polling and research agency, and the popular Kiwiblog where this article was sourced. He previously worked in the Parliament for eight years, serving two National Party Prime Ministers and three Opposition Leaders.
2 comments:
Finally! This has been a huge embarrassment - still is.
"It may have tax implications for the trust, however this is a matter for Inland Revenue” and "this one-off tax could amount to $30m". There are such things as operative words which in this case appear to be "may" & "could". What this means is that JT is now free to do whatever he wishes with these monies, mostly, it is assumed, coming from the public purse in one form or another with a possibility of tax being imposed. This little bunny will wager that the Inland Revenue will see little if anything by way of revenue from any exercise to tax Waipareira and that the rest of us will continue to fund JT and his political ambitions.
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