Shearer advised IRD of his hidden off-shore bank account, but wants us to believe he “forgot” to tell parliament

The IRD announced a crackdown on people with offshore accounts in 2011:

Group Tax Counsel, Assurance, Graham Tubb said Inland Revenue was aware of New Zealand tax residents who may have taxable offshore income held in an offshore bank account, which is accessible in New Zealand, and this income may not be returned in New Zealand for income tax purposes.

He said that people who conceal income offshore are cheating other New Zealanders by not contributing their share of tax. “They do this by paying less income tax and child support, can decrease their student loan repayment obligation, and may claim a larger entitlement to Working for Families Tax Credit than they should.”

“Some people hold credit or debit cards issued by a foreign bank and these cards are being serviced by funds held in an offshore bank account. The types of funds deposited into these bank accounts can include income paid by a non-resident employer, overseas life insurance policies, superannuation schemes, or equity investments held in portfolio accounts,” he said.

Mr Tubb warned that if people deliberately divert income into an offshore bank account to evade or avoid the payment of tax, or to claim a greater amount of Working for Families Tax Credits, they may be committing criminal offences under the Tax Administration Act 1994. 

“Inland Revenue is working in close collaboration with the revenue authorities of other countries to reduce the use of offshore bank accounts and offshore schemes to misrepresent income or assets and evade tax in this country. We have signed 18 tax information exchange agreements, with more under negotiation. These agreements give us access to key ownership and banking information,” he said.

“Failure to declare offshore income or to make appropriate disclosures to Inland Revenue can attract serious penalties. Penalties may be reduced by making a voluntary disclosure.

Looks like Shearer has made a voluntary disclosure…So he was declaring his offshore accounts to IRD all along, that then makes all his pecuniary interests declarations since 2009 false.

On TVNZ last night he claimed that he had advised IRD but simply forgot to tell parliament.

He said he picked this up when he was doing his tax returns. He has declared this to the Inland Revenue Department, but he forgot to declare it to Parliament, he said.

David Shearer really is in a pickle here. He has avoided tax problems, but along the way through he has misled parliament…there is no easy way out of this…and simply claiming that you forgot isn’t going to cut it.

That excuse didn’t work for not doing your homework and it shouldn’t work for the man who would purport to want to be Prime Minister.


THANK YOU for being a subscriber. Because of you Whaleoil is going from strength to strength. It is a little known fact that Whaleoil subscribers are better in bed, good looking and highly intelligent. Sometimes all at once! Please Click Here Now to subscribe to an ad-free Whaleoil.

  • surfisup

    Honestly I’m getting sick of this authoritarian approach to the little guy when big corporates are avoiding huge tax bills by using their global power and reach.

    • blokeintakapuna

      You must have had your head constantly in the sick bucket then with Labours constant ‘attack the man and not the ball’ approach for the last few years then…

    • In Vino Veritas

      Surf, I’ll bet you a dollar to a knob of goat poop that the big corporates in NZ and overseas get the once over by the IRD (and their equivalents overseas) just like the little guy. What you are talking about is the perception that they don’t pay their fair share, which is propagated constantly by the left wingers. Just like the little guy, most corporates (big and small) pay exactly what they owe under the current tax laws.

      • blokeintakapuna

        Unlike unions who simply refuse to do their minimum yearly financials… And in some cases for up to 7 years. Then there’s the likes of McCarten who simply gives the IRD the 2 finger salute to paying PAYE and GST taxes his unite union owes NZinc.

        The left- more twisted than a bent pretzel and conflicted by hypocrisy as to be completely without credibility.

    • johnbronkhorst

      well surf, we have proof of what happens when a corporation makes a FALSE declaration either in it’s annual statements or it’s prospectus…’s DIRECTORS got to JAIL. Will shearer be held to the same account??????

    • Roger

      When was a bloke with at least $50,000 US Dollars salted away in a foreign bank account a “little guy”?

  • blokeintakapuna

    Maybe this head of the 4-headed Taniwha could borrow the “NO” sign from one of the other Taniwha heads… And then he tell us about his personal integrity, ethics and credibility with how to manage a countries finances?

    Shearer – with ‘silent T’ shaving and Robinson dieting… It’s time to jump before being pushed, because if you jump now, you might just get a good enough run up so you can make it back to NYC, where you can be really effective as an overpaid mango distributor

  • Gazzaw

    The Nats have been the butt of a lot of personal attacks in the House of late – payback time? It’s time to stick Shearer on the rack.

    • Hazards001

      Damn right, Key got reamed over the Teapot saga and again with Dotscum. It’s about time he showed some of the nasty and led with his fist instead of his chin for a change!

  • Pingback: Shearer’s rookie chickens coming home to roost | Your NZ()

  • Blue Tim

    Pot, kettle black. Time for National’s attack dogs to put the acid on. It’ll have to be them as I don’t have much faith in the MSM puppets

  • BJ

    What prompted him to declare this account now we all ask.

    If the Shane Jones investigation was carried out properly surely the players were checked out for any overseas bank accounts and perhaps becoming aware of this put the wind up Shearer. Maybe the Attorney General had said the TOR should have included delving into bank accounts of those having the finger pointed at. If as Shearer Said – he picked this up when he was doing his tax returns. He has declared this to the Inland Revenue Department, but he forgot to declare it to Parliament, he said. – He didn’t forget about his overseas account – he kept it secret until the IRD in 2011 made it clear that voluntary disclosure off offshore accounts was preferable to them finding out by tax information exchange agreements. When did he come clean to the IRD 2009, 2010,2011,2012?

    This calls for an AG investigation (tongue in cheek)

  • Richard McGrath

    So the Daywalkers reckon some NZers are cheating others by not paying their “fair share” of tax. Bit like a burglar complaining when someone’s house is so secure they can’t break in.

  • AnonWgtn

    Key and National MPs should stay out of it – making it distainly obvious they are not interested in the Shearer event.
    He is nothing to get concerned about, whilst he waits for somebody to pounce – eh Trevor.
    Let Shearer be foisted by his own petard, and political incompetence.
    Let the Labour left wing afficianadoes do it.
    Even they do not like anybody too hypocritical, and they do not like Shearer as leader anyway.

  • cows4me

    What a shame the bloody account wasn’t in Cyprus.

  • Brian of Mt Wellington

    I wonder how many accounts with less than 50K Shearer has that don’t need declaring that he has for laundering his hidden funds.