dodgy accounts

More on TUIA union tax write off

A reader emails about my post on Sunday covering some shonky accounting at TUIA union.

Some comment on the TUIA tax write off.  There are three possible ways TUIA got the write off they received.

  1. Staff incompetence on IRD’s part;
  2. misleading conduct by TUIA; or
  3. A combination of 1 and 2.

I am guessing a combination of 1 and 2 and I will explain why.

The Tax Administration Act sets out IRD’s duties and provides for the circumstances where a write off can occur.

The Inland Revenue Commissioner (and all his staff) has a duty to uphold the integrity of the tax system and a duty to collect the highest net revenue practical.

Its pretty simple when you consider both these duties – if you owe tax and you have the means to pay you need to pay. If you don’t have the means to pay you may get relief.  If you undermine the integrity of the tax system (decide not to pay tax, engage in tax avoidance) you will still have to pay but the mercy may not be there if you can’t pay. In these circumstances rather than provide relief through a write off it may be considered more appropriate to bankrupt or liquidate and also consider some criminal sanctions.   Read more »

CTU Affiliated Union TUIA gets $63,898.00 IRD hand out

The Owl reported back in October 2012 that TUIA Union made a voluntary disclosure that they had a $70,000.00 withholding tax issue with the IRD.

The Owl always support entities who make a voluntary disclosure – means the leaders have good governance.

Well done TUIA for their disclosure but read my Observation.

For the record and as per their 2013 accounts just filed the following settlement with the IRD was as follows. (Page 6 of the accounts)

TUIA Read more »

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Should the Unite Union be struck off – Observation by the Owl

As at 31st May 2013 the Unite Union have failed to file their 2011 and 2012 Financial Accounts.

Observation by the Owl

This is a breach of the laws regarding being a Union and being registered with the Incorporated Societies Office.

Any employer could if they wish not negotiate with the Unite union until their status was confirmed.

Interesting question for the Registrar and lawyers to debate.

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Nurses Union loses $1.1M but Union staff get paid $900,000.00 more

The Owl has been quiet but he hasn’t been doing nothing. He has busted yet another union declaring missing millions of union members cash:

NZ Nurses Organisation loses $1.1M but Union staff get paid nearly $900,000.00 more – Observation by the Owl

The NZ Nurses Organisation have just posted a $1,108,073.00 LOSS – yes $1.1M, I repeat $1.1M loss.

Yes the NZ Nurses Organisation has lost $1M plus but its all OK – Union staff wages went up from $9,242,906.00 to $10,134,451.00.

An increase of $891,545.00  Read more »

EPMU and their financials – Observation by the Owl

It looks like we are not the only people who have been analyzing the EPMU accounts. We received a detailed spreadsheet from a former Chartered Accountant who has been following the stories on here and decided to do his own analysis since 2003.

The information he provided was unsolicited and anyone who follows the Owl’s writing knows I only use information freely available in the public domain. This is the first time the Owl has used someone else’s research so I spent time verifying their information.

Because it came from a former Chartered Accountant you can appreciate the detail provided is quite magnificent and a very interesting read. He made a number of notations which he has followed up with a letter to the lawyers at the Companies Office which we have seen.

Owl’s Observation

If you make a submission to Parliament you need to be very accurate with your information. A submission provided to Parliament by the EPMU said they represent nearly 50,000 workers (Electoral Finance Bill submission).

Their website says they represent 43,000 workers.

Their Department of Labour return says they have 37,000 members.

As they wrote to Parliament (the highest law in the land) and said they had 50,000 members and their membership fee is $7.30 per week this totals $18,980,000.00 in annual subscriptions but only $11,000,000.00 has been filed in their financial returns.

Which number is correct – 50,000 or 43,000 or 37,000?

If 37,000 then the parliamentary submission and website is incorrect.

If 43,000 then the parliamentary submission and Department of Labour file and financials are incorrect.

If 50,000 then website, DOL file and the revenue in financials are incorrect.

More to come on this analysis.

Some serious questions for MUNZ to answer

Attached is the RE-Filed accounts for 2009 – so far MUNZ has lodged up to 2009 (still a few more years to go) as ordered by the Registrar.

However there is a very interesting read in the 2008 comparative.

Firstly MUNZ never filed their orginial 2008 accounts. However with the whole combined accounts now you can see why. In the 2008 income comparative there is a $200k transfer from the welfare fund just below the proceeds from the sale of property.

MUNZ-Accounts
Since this is now consolidated accounts the question are:

Which Branch took the welfare fund and pocketed it into their branch fund?

Did they use it to hide big branch losses?

Did the members know their funds were flogged?

Note 5 and 6 shows big amounts owing to IRD as well – did they use the Welfare Funds to pay off the IRD?

Large variations in MUNZ Accounts

The Maritime Union of New Zealand are just starting file their correct financial statements and have released their 2005, 2006 and 2007 Accounts

A quick perusal shows that income received was actually $2.5M in 2007 against the original declaration of $ 573k

Operating expenses was $1.6M more than originally declared.

Full declaration of the consolidated accounts was requested by the Registrar of Incorporated Societies.

The Balance Sheet also shows an $11M increase in assets with $10.1M in fixed term investments.

The 2008, 2009, 2010, 2011 and 2012 Accounts are still to be filed.

More to follow….

The Meatworker’s Millions

The Meatworkers Union has finally complied with the Registrar of Incorporated Societies orders to file proper accounts. Those orders came after the Meatworkers were busted by this blog and Rodney hide wrote to the Registrar. The Maritime Union is in the same boat…we await their true accounts.

Remember Helen Kelly described the holding to account of the Meatworkers Union to their legal and statutory requirements as “hatred

The accounts are revealing. The Owl is preparing further posts…but here are some headline numbers.

Meat Workers Union disclose losses and million dollar salary expenses – by the Owl

The NZ Meat Workers Unions filed their consolidated position of all the branches overnight and after previously reporting only the capitation income at head office levels and a cheery surplus of $17,672, revenues of $700k and salary and consultant costs of approximately $150,000.00 it can now be revealed that the true situation is vastly different from that portrayed.

In fact the Union had made losses of over $300k in the last two years paid out salaries and commissions of $1.29M and their revenue was a combined of $2.8M.

The whole integrity of the Incorporated Society Act is at stake.

More importantly the auditors qualify the accounts by saying they “have not received all the information and explanations as required”

More to follow…

More charges for dodgy union boss

The Health Services Union scandal continues to truck along with more charges for Michael Williamson, and two more senior union officials are likely to be charged.

But, why aren’t the members questioning where their funds have gone?

Former Health Services Union boss Michael Williamson has been hit with a raft of extra charges including money laundering and dealing in the proceeds of crime, which attract a potential 15-year jail term.

Mr Williamson, who appeared in Waverley Local Court on Wednesday morning, was also charged with 27 counts of cheat and defraud.

The new charges are believed to relate to allegations of fraud relating to Canme, a company registered to Mr Williamson’s wife Julieanne. Canme charged the union hundreds of thousands of dollars for archiving work that an internal inquiry by barrister Ian Temby QC and accountant Ian Robertson suggested was never done.

Mr Williamson, who was accompanied by his brother Darren and his solicitor Vivian Evans, was in court only briefly.

Outside court Detective Superintendent Colin Dyson, head of the Cyber and Fraud Squad, said that Mr Williamson had been charged with 27 cheat and defraud offences totalling around $600,000 of union funds. Each charge attracts a maximum penalty of 10 years.

Of that amount, $400,000 was allegedly laundered by Mr Williamson who was aware that the funds were proceeds of crime, Superintendent Dyson said.

The detective, who is heading Strike Force Carnarvon, said that two senior union officials may be charged over this matter.

He also said that one other person is facing charges relating to Mr Williamson’s alleged attempts to hinder the police investigation.

Big Losses in Union Sector

Since it is Labour day I thought I would give readers a little piece of information as a taster of a series that is to come.

In the last financial year 15 CTU affiliated unions lost members money.

The largest loss was $674,687 and the smallest loss was $205.

The losses of members money in total (from those unions that have bothered to file accounts) was $2,210,423

Some other key numbers to astound you:

  • One Union spent $2,211,414 on travel and accommodation.
  • That same union owes $1.2M in taxes, yet reported a surplus of $1,242,446
  • One union that reported the largest loss also spent $1,149,528 on travel and accommodation.
  • The top ten unions by revenue pulled in $96,392,035 in fees.
  • Those same unions spent $54,139,939 on wages and salaries or 56% of all revenue.
  • 13 CTU affiliate unions are yet to supply proper audited accounts as required by law.

There is more to come as I continue to collate and analyse the big money that flows through the unions.