Fed: ALP says memo shows Lib branches knew not eligible for GST

AAP General News (Australia)
08-26-2001
Fed: ALP says memo shows Lib branches knew not eligible for GST

CANBERRA, Aug 26 AAP - Internal Liberal Party documents showed branches were told in
June last year they could not charge the GST or claim tax refunds on their expenses, Labor
said today.

The government has come under fire over an alleged GST scam relating to catering bills
for a fundraiser in Small Business Minister Ian Macfarlane's Queensland electorate of
Groom.

Labor has asked the tax office to investigate documents it said showed the Queensland
Liberal Party contrived a scheme to enable its federal electorate councils (FECs) - which
are not registered to collect GST - to nevertheless receive refunds of input tax credits
on fundraisers.

Mr Macfarlane has maintained the Groom FEC was following the process recommended by
the Queensland division in claiming back the refund.

But opposition treasury spokesman Simon Crean said a memo signed by then Queensland
Liberal Party state director Graham Jaeschke in June clearly stated branches were not
eligible for the GST.

"This is signed by him and it says branches will not be required to charge or collect
GST, conversely, there will be no opportunity for them to claim back the GST," Mr Crean
told the Nine network.

"So here's Mr Jaeschke, director of the branch, on the 14th of June last year, saying
you can't do it and then being involved and knowing about the scam that the Groom FEC
was perpetrating which ran completely contrary to it.

"They knew exactly what the law was."

Mr Crean said the Liberal Party had to explain the discrepancy between the June memo
and the advice referred to by Mr Macfarlane, and say whether the scheme had been approved
by the federal Liberal Party.

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KEYWORD: TAX CREAN

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