On TV3’s The Nation, Key steadfastly refused to make public the names of donors to various fund-raising events (or pay back) at Antoine’s restaurant in Parnell, Auckland.
Instead of using a Trust, where the names of donors are kept hidden, in this case Antoine’s Restaurant – whose owner is a well-known National Party supporter, Tony Astle – was the “bag man” who took the money; banked it; and then passed it on to the National Party as a donation. These donations were recorded with the Electoral Commission for 2010*and 2011*.
However – and here’s an interesting questing question that few (if any) have asked; was GST paid by Mr Astle on any of the monies ($60,000 and $105,000) received in payment for the meals?
A donation made directly to a political Party does not incur GST. But Inland Revenue (IRD) is quite clear of what constitutes a donation;
A donation is an unconditional gift only if the giver receives nothing in return.
But these monies were received from people attending the dinner and who paid for their meals accordingly. They received a ‘goods’ and ‘service’ in return for payment.
It is no longer an “unconditional gift”.
So those meals should have incurred GST.
(What Mr Astle then does with those monies, excluding GST, is his business, and he subsequently gifted it to the National Party as a donation.)
Accordingly, I have made an inquiry with Inland Revenue on this matter;
Information about a business
|Business or trade name:||Antoine’s Restaurant|
|Business IRD/GST number:||Not provided|
|Address – business:||Street: 333 Parnell Road|
|Suburb, city or town: Parnell, Auckland|
|Phone number:||(09) 379 8756|
|Mobile number:||Not provided|
|Description of the business:||restaurant|
|Provide your detailed information:||
Kia ora Mr Taxman, It has recently been revealed in the media that Antoine’s Restaurant in Parnell, Auckland, hosted a series of fund-raising dinners on behalf of the National Party.
One dinner event, in 2010, was attended by 21 people, where each person paid $5,000 to participate in the meal. The restaurant collected $105,000 from attendees.
Another event, in 2010, a sum of $60,000 was paid to the restaurant for a similar event. Considering that the monies paid was for a meal; paid to Antoine’s directly; this appears to have been a good and service provided to paying members of the public.
Was GST paid on these transactions?
You’ve successfully submitted your information.
Your information was received on Sunday, 9 March 2014 2:24:30 PM NZDT. This form is now completed.
Your reference number is: 208194.
It remains to be seen if Mr Astle paid GST on payments received for those meals. If 21 people paid $5,000 each, that comes to $105,000.
GST on that sum (in 2010), at 12.5%, would have amounted to $13,125.
Yet, the Donations Return for 2010 clearly shows that the full amount of $105,000 was transferred from Antoine’s/Astle to the National Party. No deduction has been made for GST.
* Interesting Note:
The 2011 Party Donations Return for National also includes two payment by Oravida;
The 2010 National_Party_donations Return also included a donation by one, Susan Chou, who is also connected to Oravida,
When it comes to ‘tricky’ – National excels with undisputed mastery of Big Time Tricky.
Electoral Commission: New Zealand National Party donations 2011.pdf
Electoral Commission: National_Party_donations_2010.pdf
IRD: Business income tax
Previous related blogposts
Above image acknowledgment: Francis Owen
= fs =