Cullen will not apologise for slur

Deputy Prime Minister Michael Cullen has again refused to apologise to Christchurch businessman Dave Henderson for calling him one of the country's biggest tax evaders.

Henderson's successful battle with the Inland Revenue Department (IRD) over a $1 million GST bill has been made into a film, We're Here to Help, which will open in cinemas on November 8.

The Press revealed last week that the Film Commission put $1.9m of taxpayers' money into the project, which ACT leader Rodney Hide told Parliament yesterday was richly ironic, given Henderson's struggle with Inland Revenue.

Henderson eventually had the department's determination overturned and won a refund, but not before Cullen used parliamentary privilege to criticise him.

Hide yesterday asked Cullen whether he stood by his statement "that Dave Henderson, or Hendo, is one of the biggest and nastiest tax evaders in this country – who ran the sex industry in Christchurch and avoided tax thereon?"

Cullen replied: "Mr Henderson has exercised his right to make a formal response to this House and I have no further comment to make on it."

After Cullen's statement, Henderson successfully applied to have his response written into the parliamentary record, Hansard.

It recorded that Henderson had never evaded tax, had not been charged or convicted of evading tax, and had no involvement with Christchurch's sex industry.

Hide asked how Henderson could ever get fair treatment from Inland Revenue "when the Deputy Prime Minister has already declared him guilty of criminal tax evasion" despite him never being charged or evidence presented against him.

"Why isn't the Deputy Prime Minister big enough to apologise and say he got it wrong?" Hide said.

He said the "victimisation" of Henderson by Inland Revenue portrayed in the film continued because Cullen's "wild allegations" made under privilege had never been retracted.

Cullen said that under the Tax Administration Act the IRD could not take any instructions from ministers on individual taxpayers.

"The fact that the Film Commission has helped fund a film shows what a democracy this is," he said.

"But I would like to quote for the member from the blurb for the film: 'This film does not purport to be an accurate account of the events involving Mr Henderson and the IRD'."