The tax division is having an organization linked to the operations of Future Church liquidated and has utilized to have one other of the church’s trusts shut down.
New Zealand Gazette filings present the Inland Income Division filed an software to have the registered firm Te Hahi O Nga Matamua liquidated on August 19. The appliance was heard and authorized on the Excessive Court docket at Auckland on November 7 and the corporate is now in liquidation.
Its sole shareholder is Future Church NZ Belief and its sole director is Jennifer Marshall, assistant to controversial church chief Brian Tamaki.
On September 25, IRD lodged an software to liquidate Whakamana Worldwide Belief, which in August modified its title from Future Worldwide Belief. Marshall signed off on the title change.
The appliance for liquidation is to be heard by the Excessive Court docket at Auckland in December.
Based mostly on belief register filings, it seems that Whakamana Worldwide Belief’s predecessor by title, Future Worldwide Belief, and Te Hahi o Ngā Matamua Holdings, have been faraway from the charity register a minimum of twice, in 2017 and 2022.
Each have been re-registered after every occasion, regardless of widespread requires the church and its associated entities to be struck off for good.
An opinion piece printed in February by Dr Emmy Rākete, a lecturer in social sciences within the College of Auckland’s School of Arts and Training, says the Authorities ought to stand as much as Future Church, which “too usually makes use of the concern of violence to drive queer individuals out of public life”.
“First, we should strain the Authorities to undertake lawfare towards Future Church’s organisation. Future Church-affiliated charities should be faraway from the charities register, ending the tax-exempt standing that helps the organisation’s operations.”
Susan Barker, of Susan Barker Charities Regulation, says one other kind of tax IRD may chase trusts for, except for the standard PAYE levies, is deregistration tax.
“Part HR 12 [of the Income Tax Act 2007) has become a reasonably complicated tax but, broadly, a deregistered charity must divest itself of all its assets within 12 months or pay tax on the market value of the assets that remain.
“It has been catching charities out badly, particularly those that own land that might have increased significantly in value since it was first purchased.”
Barkers describes this section of the act as a “very blunt instrument”.
Responding to Newsroom’s questions over the phone, Marshall says the two entities haven’t been in operation for years and that all taxes “would have been paid”.
In a following statement sent by email, she says: “Both Whakamana International Trust and Te Hāhi o Ngā Matamua Holdings Limited ceased to operate as Destiny Church entities in February 2022 when their registrations with Charities Services ended.
“These old entities have had no connection to Destiny Church or its ongoing charitable operations since that time. No reference should be made to the Church in relation to these entities. The current administrative steps are simply part of their wind-up.”
Inland Revenue customer segment leader, Tony Morris, says starting a liquidation process is not something the department does lightly, as it can effectively spell the end for the company.
“A decision to start the liquidation process is often made against a background of non-payment of tax, failure to honour agreed arrangements and non-engagement.
“To start the liquidation process we will issue a statutory demand, requiring payment of a debt. Before doing this in any case we consider a range of circumstances. Factors supporting liquidation include where the company:
“Continues to trade while insolvent and is being run in a way that presents a risk to the Commissioner and other creditors;
continues to trade while not meeting its current tax obligations, and negotiations with the company to resolve the debt have failed;
has applied for financial relief and we have declined that;
has been charged shortall penalties for evasion or taking an abusive tax position – these penalties are unable to be written off by law, unless an order for liquidation is made;
has assets, including an overdrawn shareholder account, that the liquidator may be able to sell to repay the debt; and
appears to have dissipated assets in an effort to avoid paying its debts/creditors.”
The church, led by its ‘Apostle’ and founder Bishop Brian Tamaki, has around 11 branches, which are attended by a predominantly Māori and Pasifika congregation.
Most recent available consolidated financial statements for the Destiny International Trust (now Whakamana) and the entities it controls, including Te Hahi o nga Matamua Holdings Limited, are from the year ending March 31, 2019.
An independent auditor’s report to trust beneficiaries from Grant Thornton says: “We draw attention to Note 16 in the consolidated financial statements, which indicates that the Group incurred a deficit of $58,540 for the year ended 31 March 2019 and, as of that date, the Group’s current liabilities exceeded its current assets by $177,494.
“As stated in Note 16, these events or conditions, along with other matters as set forth in Note 16, indicate a material uncertainty exists that may cast significant doubt on the Group’s ability to continue as a going concern.”
Financial statements showed the church had property worth $4.3 million.
The church has been mired in controversy over the years, with most recent headlines relating to a violent church-linked protest at an Auckland Pride storytime event.
Authorities investigated allegations of assault after a group of around 50 people entered the Te Atatū Community Centre in February this year and refused to leave. Seven people have since been charged.
Journalist John Campbell’s second investigative series into the church has this year highlighted fear from members, far-right prejudices and how it has amassed money and power.
