Laban Luamanuvao Winnie: Questions for Oral Answer — Questions to Ministers 
Laban Luamanuvao Winnie: Questions for Oral Answer — Questions to Ministers 
[Volume:611;Page:8826] 
4.  
LUAMANUVAO WINNIE LABAN (NZ Labour—Mana) 
 to the  
Minister of Revenue 
: What proposals has the Government made to reduce tax compliance costs for small businesses? 
Hon DAVID CUNLIFFE (Associate Minister of Revenue) 
 on behalf of the 
 Minister of Revenue 
: The Government yesterday released a discussion document on simplifying tax for small businesses. Proposals included offering a subsidy to assist with payroll agents a discount for business people paying provisional tax in their first year basing provisional tax on GST turnover and simplifying the payment of provisional tax. 
Luamanuvao Winnie Laban 
: What other steps has this Government taken to simplify taxation compliance? 
Hon DAVID CUNLIFFE 
: Tax simplification for small business is one more step of a comprehensive tax simplification process that this Government has undertaken. It includes debt and hardship provisions use of money interest provisions adjustments to trading stock and today Dr Cullen announced that the tax rules on payments for non-resident contractors would be simplified. 
Dr Don Brash 
: Is the Minister aware of the KPMG Peat Marwick - Business New Zealand survey of compliance costs released just 3 weeks ago which showed that in excess of 98 percent of the 760 businesses surveyed found compliance costs had increased over the last 12 months; and when will the Government get really serious about dealing with these compliance costs especially those for tax occupational safety and health and employment relations? 
Hon DAVID CUNLIFFE 
: I respectfully suggest the member has another look at that Business New Zealand survey. He will see that in 13 out of 18 categories up to 80 percent of businesses said that their compliance costs have either stayed the same or been reduced. 
Peter Brown 
: Noting those answers will the Minister tell the House what favourable tax regime the Government is proposing for New Zealand shipping or will it reinstate cabotage? 
Hon DAVID CUNLIFFE 
: I am pleased to confirm to the member that should a shipping business fall into the category of a small business it will qualify for all the advantages of the tax package just announced. 
Gerrard Eckhoff 
: Will the Government’s proposal to reduce compliance costs to small business extend to the dumping of the methane emission tax which is opposed by upwards now of 70000 farmers and the public; if not why does the Government not release income derived from carbon credits now available to industry as a way of implementing the stated aim of reducing compliance costs to industry? 
Hon DAVID CUNLIFFE 
: If the member wishes to have a discussion about the emissions levy I suggest he address it to the relevant Minister. I am advised that Federated Farmers have been invited to participate in the allocation of those funds but have so far declined. 
Gordon Copeland 
: Has the Minister considered directly offering a payment equivalent to that being offered to payroll agents to those small-business owners who choose to do their own payroll and GST returns; if not would he be prepared to give it his consideration given that it is a good idea? 
Hon DAVID CUNLIFFE 
: A good common-sense question deserves a common-sense answer—that is what this package is. There are reasons that payroll agents are able to generate additional savings. They are specially qualified have all the resources necessary at their disposal and both the taxpayer and the general public benefit from those efficiencies. 
Hon Richard Prebble 
: Has the Government given consideration to really lowering the tax compliance costs of small businesses by reducing the amount of tax that small businesses must pay with the introduction of a low flat rate of tax; if not why not? 
Hon DAVID CUNLIFFE 
: A constituent of mine who lives not far from the honourable member runs a corner dairy. Not long ago he needed a heart bypass operation. The reason we are not lowering tax rates is that the same people who run businesses need schools and hospitals. 
Dr Don Brash 
: I seek leave to table the KPMG Peat Marwick - Business New Zealand report on compliance costs. 
Document by leave laid on the Table of the House.