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Queenstown Lakes Mayor Vanessa van Uden has also been involved and said it might also have financial repercussions for the district council. ‘‘If you look into the future from a negative point of view there’s something that could come up . . . There’s a small risk. We don’t want to hang the trustees out to dry,’’ she said. The greatest risk was likely to people who would miss out on housing if the trust was disestablished, she said. A spike in the trust’s expenses in the just-published financial report included a ‘‘six-figure sum’’ paid to Deloittes in the hope they could resolve the issue with Inland Revenue but those efforts were unsuc- cessful to date, Mr Cole said. ‘‘We have had assurances from Wellington that the matter is being looked at but we’ve had no advice . . . on how they plan to address it.’’ A working party including treasury, Inland Revenue and the social housing unit is looking at the issue. A representatives for Minister of Housing Nick Smith told the Mirror Mr Smith was ‘‘very aware of the issue.’’ ‘‘It is a complex tax issue and he needs to respect the independence of the Charities Commission and the High Court ruling,’’ she said. ‘‘The minister is currently reviewing policy around social housing providers like the Queenstown Lakes Community Housing Trust as he is keen to grow the community provision of social housing and recognises that this tax ruling makes it more difficult.’’ He hoped to have a resolution to the issue by the end of the year, she said. Inland Revenue declined to comment, citing taxpayer confidentiality. The Social Housing Unit did not respond before deadline. A spokesperson for CluthaSouthland MP Bill English said he was in the United States and unavailable for comment. The trust invests in affordable homes to assist low to middle income earners into homes as owners or renters in one of the most expensive districts in New Zealand. Mr Cole said the onus was on the Government to sort the issue out as it was heavily involved in the trust’s devel- opment, including paying for the drafting of the trust deed and an independent review of it and a review of the trust’s activities. It also checked and approved each individual household and transaction in the early stages. ‘‘It’s fair to say the Crown’s endorsement and fingerprints were all over the design and approval of the entity, the trust deed and the activities of the trust itself. ‘‘The trust has done absolutely everything in a transparent fashion. ‘‘To find itself now with a tax status that is inconsistent with all the other housing trusts in the country is difficult to fathom.’’ Ms van Uden said it would be commonsense to return the trust to some sort of charity status.