The Crown's creative accounting practices
The vast majority of 52,000 GSF (Government Superannuation Fund) occupational pension recipients are paying up to $2,000 MORE tax than they should be while a few thousand are not paying ENOUGH tax, according to our democratic system!
If a tax payer has less than a total income of $40,000 per year, they are only liable to pay up 19.5% tax but if a NZS (NZ Superannuation)/GSF pension recipient receives a similar amount, they pay MORE.
The way it works is, the GSF is deducted at source by 30%. This deduction plus the tax on the NZS is $7,920 whereas the total on the NZS and non-deducted GSF is only $6,255!
This anomaly can be rectified by claiming back the difference which can be up to $2,000 but the GSF recipient has to claim it. How many know this?
As an example, an Auckland Grey Power Association member is in net receipt of $13,000 GSF pension plus the NZS (NZ Superannuation), worth in total approx $24,630 but has only paid $2,370 tax on the NZS.
The GSF $13,000 is tax free, as it is subject to 30% deduction, is worth approx $18,500 untaxed and this amount, plus the gross $14,000 NZS is worth $31,500. The total tax on the combined NZS/non-deducted GSF of $31,500 is $6,255.
Compare $6,255 this with what the GSF recipient actually pays ($2,370 NZS tax plus the $5,550 deducted at source) $7,920 and that recipient has paid OVERPAID $1,665 in tax and the tax related deduction!
On the converse side, if a GSF recipient has a GREATER combined income of MORE than $40,000, in some cases it is OVER $100-300,000, they are paying LESS than another equal democratic resident, this can be in the $10,000 range!
By this method, the NZ Crown administration are involved in NZs greatest 'con', that is by the use of creative accounting that is OUTSIDE Treasury control. This is reinforced by the statement of Professor Bill Hodges on TVONE 6: 00 PM News programme of 4th Nov 2009 - the GOVERNMENT CANNOT interfere with contractual arrangements.
According to the Finance Minister, who will be the recipient of a GSF contractual pension worth annually OVER $100,000, the Government has agreed that the Crown can superseded a contract, by the statutory GSF Act 1956.
The Crown submits its estimated requirement costs, including its SS (Social Security) or SW (Social Welfare) approved by Parliament. These estimates and approval (approbations) are given by that democratically elected body to the Treasury, to pay those estimated requirements, payments which are renewed by taxation.
A Ministry annually receives its approbation from Treasury, then that Ministry is answerable to Parliament, through its Executive arm of the Cabinet, for their particular Ministry. If that approbation is NOT spent fully by the end of that financial year, the unspent part is sent to the PCF (Public Consolidated Fund) for the use of Govt in unforeseen Special requirements but it still remains public money. If there is insufficient funds in the PCF, Parliament can approve a Special grant (Crown grant) of more public money from Treasury. Approbations and Crown grants are open to public scrutiny.
By 'suggesting' to Govt. that a Ministry can save PART of the approbation, the Govt. can then publicly announce these savings to the media (thus earning Brownie points) and that part of the tax payer funded estimate is returned to the PCF.
The PCF is open to public scrutiny but the Crown administrators con of the Govt. by spinning' the strict precedence of natural and statutory laws applicable to the statutory GSF Act 1956. and say the Crown has statutory authority to transfer public money to that non-public fund of the GSF (Government Superannuation Fund), this is nonsense!
By this 'spinning', approx $12 BILLION of tax payers money has been spirited away to the GSF (over $600 MILLION in the last financial year alone) to pay annuities FROM that fund, which the Crown, as employers, have NOT contractually complied with the natural conditions, even though those employers have already been paid in their previous approbations!
A little background, in the 1980s, all GSF schemes were amalgamated into one giant scheme into which, all EMPLOYEES contributions were paid (but NOT THE EMPLOYERS CONTRACTUAL CONTRIBUTIONS) thus the GSF reserves didn't increase as they should have, but annuities were still paid out. This is very similar to a 'Ponzi' scheme in which interest is paid out of deposits!
It is presumed by the Crown administrators, that this unlawful method would be exposed eventually, so this 'all embracing' GSF scheme was closed to new entrants, as of the 1st June 1992 and present members were 'encouraged' to transfer to other GSF schemes.
The Crown administrators (as employers) are obliged by commercial/international law, the reason the Govt give for not interfering, but the Public office holders, elected to Parliament BEFORE the 1st July 1992 are meet the GSF contractual contributions of their employees, in order to build up a sufficient fund to pay for present, past and future GSF annuities (pensions).
The GSF administrators have conned the Govt. into believing that they, the administrators, have the authority of the GSF Act 1956, to supersede natural law with statutory law, this is impossible and thus unlawful!
Any recipient of these GSF pension (annuity) does not have to declare them at income tax reconciliation time (7th July) but it is advisable for those on LESS than a total income of $40,000 (including a GSF pension) to do so. YOUR tax rate is, at the most, 21% while the GSF pension is deducted 30% at source.
This tax difference could be in $20,000 X 9% = $1,800, a not insignificant sum to a pensioner BUT, if you DON'T put in a claim, you will lose it that tax rebate!
On the converse side, a GSF recipient with MORE than the $40,000 total, pays less tax than others with a similar, but not with any tax free GSF. The bigger the GSF annuity, the less tax, per ratio, is paid.
The present Speaker, the Minister of Finance, another 14 sitting MPs will receive and thousands of ex senior Public/ Civil servants are already receiving, these GSF pensions in excess of $40,000, pensions that have not been contractually paid for BY THEIR EMPLOYERS, the NZ Crown administration. These GSF pensions are also gilt edged as they are CPI linked, are mostly tax payer funded, guaranteed and are exempt deduction from the tax payer funded NZS (NZ Superannuation).
An examination of the statutory GSF Act 1956 indicates that the employers have no authority to defer payment of their contributions to match their employees contributions, nor can that statutory Act authorise those employers to ignore their contractual obligations as any such authority would entail statutory law SUPERSEDING natural law and that is an impossibility, remember King Canute?