Art & Design

Aug 3, 2012

If MONA is our Guggenheim, does Walsh deserve a free pass?

Philanthropic punter David Walsh is battling to keep his millions. So what happens to his celebrated Museum of Old and New Art if he goes down? Ben Eltham examines a unique and precarious gallery model.

Ben Eltham — <em>Crikey</em> arts commentator

Ben Eltham

Crikey arts commentator

The Museum of Old and New Art, or MONA, has been in the news of late. But not for its art.

18 comments

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18 thoughts on “If MONA is our Guggenheim, does Walsh deserve a free pass?

  1. Gavin Moodie

    I love MONA and doubt that it could have been established by a government. However, I agree with this argument that notwithstanding the founder’s public spiritedness, he should pay tax like everyone.

    Of course Walsh’s dispute with the tax office is rather more complicated than stated here. He got a private ruling from the tax office which he wishes to hold the office to, but the office claims that the ruling was granted on the basis of incomplete or possibly misleading information. The public can’t judge that without far more information and probably extensive tax expertise: it is better to trust the courts to reach the just result.

  2. mikeb

    A couple of points. First Pratt was engaged in an illegal activity – i.e. price fixing in which customers effectively pay more than they should in a truly open market. Walsh and his partners are engaged in a pursuit with an acknowledged risk of winning or losing. The fact this he has shortened the odds of losing in his favour does not change that. That being said Walsh should pay the tax that is due – and to my knowledge Walsh does not dispute that. What is disputed however is whether the tax department can go against previous advice and historical understandings to claim a retrospective liability. The outcome of that decision would be very interesting. I’d be more worried about the big companies using offshore tax havens and legal loopholes to avoid paying tax which would amount to billions of dollars annually. Walsh is chicken-feed compared to those players.

  3. Gavin Moodie

    There’s no problem with tax avoidance – reducing tax by legal means. But I think the ATO is alleging that Walsh engaged in tax evasion – the criminal non payment of tax liabilities.

  4. Paul Bendat

    Unless it’s evasion, worst case might be that Mr Walsh donates all or part of what is MONA, gets more than what he owes as a legit deduction and works out some deal to keep his vision going for this amazing Australian asset.
    BTW totally agree with MikeB

  5. Jackman

    Must say, Ben Eltham, I’m disappointed with your article here and feel it’s not as balanced and complete as one would expect a Crikey article to be. The real point of contention here is that David Walsh received from the ATO a private tax ruling which he legitimately relied upon in order to not pay tax. Of course whether that ruling was achieved with or without disclosure of full information to the ATO is a point which will likely be decided by the courts. But my concern here is that Ben Eltham failed to highlight this critical point in his article. Gavin Moodie and MikeB picked it up in their comments straight away, which can only leave one to question why Mr Eltham neglected this point in his article? Any way you view this omission in the article, it looks poor, and is a disappointing effort.
    And how about viewing this issue another way?: Despite an assurance from the ATO that he did not need to pay tax, David Walsh has done the right thing and given back an awful lot to the Australian people by building MONA. That is a lot more than can be said for his partners in the gambling syndicate, and an awful lot more than can be said for the many corporations that use tax loop holes to avoid/evade tax (Texas Pacific Group with their Myer profits, anyone?? Those profits disappeared from Australian within 24 hours I believe, and no taxes were ever paid).

  6. zane

    Does Walshy (who I notice has a nice new haircut for his photo ops since “the troubles”) deserve a free pass? No, pay up.

    Is MONA “special” in any way? In Australia, yes, but only just, and only because Arts Policy in Australia is so boring and risk averse. Worldwide MONA is just another contemporary art space with a rather conservative (yes, really) curatorial focus.

    Poverty levels in Tasmania are still disgusting, regardless.

    MONA/FOMA on the other hand, IMHO, is the most interesting festival in Australia to have emerged in the last 20 years. So for that, thank Brian Ritchie, who unlike Walshy actually knows what he’s doing. Leave Walshy to his just deserts.

  7. mikeb

    So should Walsh be fixing poverty in Tasmania?
    There’s be no Mona/Foma without Walsh and he also employs BR? Quite a visionary appointment in hindsight.

  8. zane

    MikeB

    I am not suggesting Walshy should fix poverty, but there has been considerable noise about how fantastic the gallery has been for the Tasmanian economy has there not? Hyperbole IMHO.

    Is that the best Tasmania can do….cry on and on about a private gallery run by a rich bloke? Really? For goodness sake, it’s a private gallery attached to a winery!!!!

    Is that it Tasmania, is that honestly all you’ve got to cry about? How about getting ambulence services to poor people 45mins out of Hobart? That might help.

    Pathetic.

  9. bobm

    “For decades, Australian arts ministers have longed to build an Australian Guggenheim, an iconic attractor to rank with Bilbao. Now someone’s done it for them, with not a cent of public funding.”

    Well, according the ATO the public funding amounts to $37 million, plus interest.

    MikeB, if that’s chicken feed I want the feathered suit.

  10. mikeb

    @BOBM. You’ve judiciously chopped of a couple of crucial words when referencing me – those words being “compared to”. Presumably you’ve been learning too much from News Ltd rags.

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