Tax 'favours’ probe

Press, 10 May 1980, Page 6

Tax 'favours’ probe

PA Wellington An Ombudsman,\Mr L. J. Castle, is investigating complaints against the Inland Revenue Department , alleging political influence in the granting of tax exemptions. A Levin lawyer, Mr R. W. Roussell, has alleged that the Government and the department have favoured taxpayers “possessing power or political influence or connection” to the disadvantage of other taxpayers. He said the Otaki Borough Council had been granted a special tax exemption in 1978 for political purposes. Mr Castle said yesterday that he could not say anything about the allegations except to confirm that he was investigating them. The Minister . of Inland Revenue (Mr Templeton) was out of Wellington

yesterday but a spokesman for his office said Mr Templeton would probably make a statement later in the day. Mr Templeton was quoted in the "Dominion” as saying that the allegations were very serious. His spokesman said the comment came from correspondence between Mr Templeton and another party relating to the allegations. Mr Templeton would probably refrain from commenting in detail on the allegations because Of their investigation by Mr Castle. The Commissioner of Inland Revenue (Mr R. T. Phillip) said he had not seen the file relating to Mr Roussell’s allegations. JHe had talked with a reporter about general tax matters but had not been aware of the detailed allegations until, the article had been published. He declined to discuss the matter.

The National member of Parliament for Kapiti (Mr B. E. Brill) who is reported to have lobbied for a special dispensation from the nowrepealed property speculation tax for the Otaki legislation council, and Mr Roussell could not be reached for comment. The secretary-treasurer of the Municipal Association (Mr C. H. Archer) said he had not seen the report of the allegations and would need time to study it before deciding whether the association would comment. The association unsuccessfully tried to get local bodies exempted from the property speculation tax legislation, which was in force from 1973 to 1979. The Otaki council was the only body to gain an exemption. Earlier story, Page 23.