Williams Andrew: Taxation (Annual Rates Returns Filing and Remedial Matters) Bill — In Committee 
Text is incorporated into the Bound Volume 
Williams Andrew: Taxation (Annual Rates Returns Filing and Remedial Matters) Bill — In Committee 
[Sitting date: 28 August 2012. Volume:683;Page:4833. Text is incorporated into the Bound Volume.] 
ANDREW WILLIAMS (NZ First) 
: 
 Thank you Mr Chairperson. I will take a little call now if I may on behalf of New Zealand First. A small pun on words. 
Richard Prosser 
: Not a prior call. 
ANDREW WILLIAMS 
: No not a prior call; a little call. In the famous words of Benjamin Franklin “The only things certain in life are death and taxes.” Further to that Albert Einstein is attributed as saying “The hardest thing in the world to understand is income tax.” If that is coming from Albert Einstein we would all agree that certainly the subject of tax although it is a very dry topic and a very complicated topic is indeed a very necessary topic because apart from death it is the other main thing that we will all contribute to in our lives. Also there is an unknown quotation from another individual who said: “People who complain about taxes can be divided into two classes: men and women.” That pretty well sums it up as well. 
In terms of the Taxation (Annual Rates Returns Filing and Remedial Matters) Bill in a sense this is moving the deckchairs around on the  
Titanic 
. It is somewhat extraordinary that many of the measures that are having to be brought in through this bill—and we do support it because anything is better than nothing—are very much a lot of tinkering around the edges in the opinion of New Zealand First. It certainly is not the overhaul of the tax system that we in New Zealand First have long sought for many many years. 
In respect of some of the measures in this bill it is only putting back what has been taken away. We concur with previous speakers: KiwiSaver contributions by employers were reduced from 4 percent to 2 percent just a year or so ago and to now come back in this bill and put them back up to 3 percent is basically an admission that reducing those employer contributions was an error in the first place. We are disappointed that this House is having to basically redress errors of that nature from the past. 
It also says in the bill that there will be taxes on bonus shares issued by companies. Again we do wonder whether that will apply to the bonus shares that will be issued for the State-owned assets that are proposed to be sold off by this Government. Will those bonus shares that are going to be offered to the supposed mum and dad investors—otherwise known as Mr Fay and Mrs Richwhite—end up with taxes being paid on them because of this bill? Who would know? 
Also in terms of this bill it does require taxpayers who choose to file a return to file ones for the previous 4 years. That does tighten things up a bit so that people cannot just cherry-pick with their tax returns and pick good years and not file in other years. If you are going to be an ongoing taxpayer and expect to get refunds or have to pay tax you have to be consistent year after year for the previous 4 years. That is a sensible solution. 
But there are many other areas of this bill that are pretty dry to people who might be listening out there around New Zealand. Basically there are things such as the clarification that the late payment fees charged by businesses and the credit card service fee for tax and social service payments will be subject to GST. It prevents liquidators and receivers from switching the basis on which they account for clients’ GST obligations. It confers charitable status on four overseas-focused charities. The bill also provides various remedial amendments to ensure that legislation operates correctly and is consistent with the original policy intent including the following. It amends the portfolio investment entity rules to ensure they are applied correctly it ensures that the rules introduced in 2011 for look-through companies are consistent with the policy intent and it clarifies the loss limitation rules for limited partnerships. It also clarifies the definition of “hire purchase agreement” repeals an exemption to foreign investment fund rules and provides an optional method of valuing certain shareholdings under the rules. Lastly it introduces new rules for the transfer of emissions units by public bodies in certain circumstances. 
Most of these are pretty dry and pretty boring to be read out but it does show that this bill has a great deal of content in it. It is a fairly hefty and weighty bill with an awful lot of information in relation to taxation much of which will go over the heads of most people. But in so doing much of this bill does tidy up some loose ends of the taxation system. It does bring things into line. It does provide some improvements in areas after recommendations from the Inland Revenue Department and Treasury. Therefore it can only be advantageous in terms of a better tax system. 
But at the end of the day it is still tinkering. It still does not get around the fact that for instance although we are trying to pull in the nickel-and-dimes here and although we are trying to tighten up small loose ends here this Government only 2 years ago gave very very large tax reductions to the wealthy of this country of several billion dollars per year. We now in hindsight must be wondering why on earth we did that. We end up having to tinker around the edges like in this bill while giving away billions of dollars to those who could certainly afford to not have those tax reductions. Let us hope that in the future there will be proper tax reform and there will be proper tax reviews so that we do not have to continue to just tinker and that there will be genuine tax reform.