Prasad Rajen: Taxation (Annual Rates Returns Filing and Remedial Matters) Bill — In Committee 
Text is incorporated into the Bound Volume 
Prasad Rajen: Taxation (Annual Rates Returns Filing and Remedial Matters) Bill — In Committee 
[Sitting date: 18 September 2012. Volume:684;Page:5324. Text is incorporated into the Bound Volume.] 
Dr RAJEN PRASAD (Labour) 
: 
 Thank you. It is a privilege to rise and take a call on this Taxation (Annual Rates Returns Filing and Remedial Matters) Bill and to talk about clause 103 in Part 3. I know that the Hon Simon Bridges is particularly interested in this part and so he will be following my comments particularly closely. This particular clause is permissive in the sense that it now enables— 
Hon Simon Bridges 
: That’s like half the Labour caucus Rajen. 
Dr RAJEN PRASAD 
: I beg your pardon Mr Bridges? 
Hon Simon Bridges 
: That’s like half the Labour caucus—permissive. 
Dr RAJEN PRASAD 
: I do not know what that member knows about the Labour caucus but what he knows about the Labour caucus will not fit on the back of a small stamp. 
Chris Hipkins 
: I don’t know whether to be offended or flattered. 
Dr RAJEN PRASAD 
: Yes yes yes. But we know much more about that member’s caucus. I am happy to elucidate on that if the member is particularly interested but I am sure he is not and it will be outside of scope. 
The CHAIRPERSON (Eric Roy) 
: Part 3. Part 3. 
Dr RAJEN PRASAD 
: Thank you Part 3. Thank you Mr Chairman for bringing Mr Bridges back to the point that I am trying to make. So here is a permissive provision for the keeping of records when tax returns are submitted. 
Maggie Barry 
: Take your time. 
Dr RAJEN PRASAD 
: What clause 103 does is it actually enables records to be kept in a particular way. I notice Maggie Barry is particularly interested in keeping it narrow because that fits within the ambit— 
Maggie Barry 
: Get to the point. Get to the point. 
Dr RAJEN PRASAD 
: —of that member’s understanding of this. If the member will allow me it is about where the records are going to be kept and what kinds of records. Ms Barry as a member in an electorate with a whole lot of Korean members would be interested in how the system is going to work when the language now is permissive. Records do not have to be in English. Also what this clause does is enable these records to be kept anywhere. So the Minister in the chair Amy Adams might want to tell us what kinds of provisions the Inland Revenue Department will make to make sure that there is an ability to access those records and translate them in a way that would make sense within the New Zealand tax system. I have some experience with this I would want to tell both Maggie Barry and Simon Bridges because when I was a member who heard immigration appeals on the Residence Review Board I had to deal with a lot of records in banks about what banking records— 
Hon Clayton Cosgrove 
: Banks? John Banks? 
Dr RAJEN PRASAD 
: —in business—Banks again. No no different kind of banks. This is a good bank; that is a bad bank. This is a good bank a straight-up bank. Banks that can be trusted. Banks that do not forget what they are telling you about. Banks with good records Mr Bridges—those kinds of banks. Here Mr Bridges one had to really do a lot of work to understand the investment records of those who were applying to come to New Zealand on business migration visas. That required all of the skill I have and I know Mr Bridges it is not that great but it is enough. It is enough. It has got me this far and I am sure it will see me through my time. 
What are the provisions by which the Inland Revenue Department is going to access these records? They could be in Swahili. A record could be in Ethiopia. It could be in the Middle East. It could be in Korea in India or wherever. So here we have a set of permissive provisions. That— 
Todd McClay 
: If it was in Swahili it would make more sense. 
Dr RAJEN PRASAD 
: The member does not know Swahili? We will send him to East Africa—we will send him there. The member might want to know that it is a language. Mr Todd it is a language and it is used for trade in that particular region as well. Here are provisions in this bill that say records can be kept in any language and in a number of different places. So where are the checks and balances I ask the Minister in the chair? The Minister might want to take a call to explain to us where those particular records will be kept and how might they come to be utilised by our tax authorities here. 
Of course clause 104 also enables this information to be transferred electronically so it makes it even more important that we have those checks and balances. I just assumed that the Finance and Expenditure Committee and the Minister of Revenue have thought about these provisions and I am sure they have. I would just like to know what they are because there are so many languages of trade internationally now yet this is permissive. 
Todd McClay 
: No they’re in favour. 
Dr RAJEN PRASAD 
: It is permissive. Well Mr Todd this says it does not have to be in the English language.