He chair of the ACT Tourism Board, Charles Wright, led a charmed life or had a guardian angel with respect to his taxation affairs, Liberal Senator Bronwyn Bishop said at a Senate Estimates Committee meeting yesterday.
The Minister for Administrative Services, Senator Bob McMullan, accused Senator Bishop of a scandalous misuse of parliamentary privilege to sully Mr Wright’s reputation.
Also yesterday, the Chief Minister, Rosemary Follett, stood by her appointment of Mr Wright as chair of the Tourism Advisory Board while the Leader of the Opposition, Kate Carnell, called for him to stand aside pending an inquiry.
Senator Bishop asked taxation officials about collection procedures for group PAYE tax (tax taken out of employees’ pay packets). She was told of an efficient system that would have triggered a non-payment of group tax very quickly, certainly if no payments had been paid for a year.
A report would be generated and contact would be made with the employer to find out why, resources permitting.
Senator Bishop asked why then had a company of which Mr Wright was director run up unpaid group tax over nearly three years totally $176,960.55 with penalties of $75,852.29.
She said she had referred to the politicisation of the Tax Office before. She referred to the WA Inc Royal Commission report that described Mr Wright as a conduit for $80,000 from former Premier Brian Burke to his former secretary Brenda Brush.
“”Here is a well-known Labor Party servant’s company in liquidation with no attempt to collect” the tax for a considerable period. “”How is it ordinary taxpayers get hit hard, but Mr Wright leads a charmed life or has a guardian angel?” she asked.
Assistant Taxation Commissioner B. M. Nolan pointed out it would be a breach of the secrecy provisions to discuss individual taxpayers. Mr Nolan said allegations of politicisation had not been demonstrated and were not true.
Senator Bishop: “”We’ve heard how good the system is, yet here is a Labor apparatchik who has been given . . .
She was interrupted by Senator McMullan who said Senator Bishop only wanted to “”drop mud on someone who can’t answer”.
It was a scandalous abuse of parliamentary privilege.
“”You cannot know how this debt accumulated and if the officers know they cannot answer,” he said.
Senator Bishop said the debt was on the public record in the form of a report from the liquidator.
sq(A liquidator’s letter is filed on the companies office public file of Canberra Mail and Print Pty Ltd. It states the taxation figures cited by Senator Bishop).
Rick Matthews from the Tax Office revenue section said the system worked well in reporting, but it could take years for collection processes to complete.
Senator Bishop: Here is a preferred Labor Party person with tax outstanding for three years . . .
Senator McMullan: You wouldn’t seriously suggest a preference in the Tax Office for Mr Wright . . . .
Senator Bishop: Oh yes I would.
Senator Bishop said that with some 19,000 officers, it was possible for some individuals to give preference or disadvantage to some taxpayers on political grounds. She asked: “”How did this individual get preference?”
Tax officials said there was no evidence of preference. The fact that the Tax Office was pursuing the debt liquidator showed that. Senator Bishop, however, said the three-year absence of action showed otherwise. Mr Nolan said he would investigate, but he would not report back because it would breach taxation secrecy. Nothing he had heard showed any political preference.
Yesterday The Canberra Times published details of Mr Wright’s report as a lobbyist to the tobacco company Philip Morris saying that highly professional lobbying had enabled every anti-tobacco health proposal to be watered down. Details of Mr Wright’s suggestions on how to approach companies for donations to the ALP were also published.
Ms Follett said, “”The matters canvassed in The Canberra Times have no bearing on Mr Charles Wright’s work as chair of the Tourism Advisory Board.
“”Ms Follett reinterated that the Government was more than happy with Mr Wright’s contribution in his current capacity. The Government has no evidence of any matter which is likely to alter that view.”
Ms Carnell called for an independent inquiry, either by the Assembly or preferably by a judge or senior lawyer. She thought Mr Wright should stand down from the $12,000-a-year job pending the outcome.
Mr Wright said through his secretary that the matter was in the hands of his solicitor.