NO.061

GROOM FEC

Allegations by the Australian Labor Party under Parliamentary privilege that

I had been involved in any way in tax fraud are completely false and without

foundation.

I was not consulted by anybody about arrangements for a dinner at which I was

the guest speaker in Toowoomba in November 2000. I was not informed of arrangements.

I am not responsible for the taxation liabilities of the people who supplied

any goods or services.

I have now been able to check my correspondence, which shows in late February

2001 I received a letter from Mrs Watts (whose name I did not recognise) which

made complaints about the Queensland Liberal Party and informed me that the

State Director had admitted he was in error in relation to certain alleged matters.

I asked my office to refer it to the Minister for Small Business so he could

check with those responsible that the proper obligations were being met.

I understand that the Australian Taxation Office began a comprehensive review

of the Queensland Division of the Liberal Party.

I am informed by the Federal Secretariat of the Liberal Party that the Queensland

Division of the Liberal Party made full disclosure of all outstanding matters

in these discussions and has resolved all outstanding matters. Further, I am

told the Queensland Division is in a refund position.

If the Labor Party has any evidence that is not the case, it should document

it and present it to the Commissioner of Taxation.

CANBERRA

23 August 2001

Contact: Niki Savva

02 6277 7340