Smith Lockwood: Income Tax Bill — In Committee Third Reading 
Smith Lockwood: Income Tax Bill — In Committee Third Reading 
[Volume:641;Page:11296] 
Dr the Hon LOCKWOOD SMITH (National—Rodney) 
: 
 Mr Chairman— 
The CHAIRPERSON (H V Ross Robertson) 
: The member will need to seek leave to have another call. We can have a 4-hour debate so I hope the Committee will be generous to you. 
Dr the Hon LOCKWOOD SMITH 
: I seek leave to take a further call. 
The CHAIRPERSON (H V Ross Robertson) 
: Leave is sought for the member to take a further call. Is there any objection to that course of action? There is none. There may be multiple calls Dr Smith! 
Dr the Hon LOCKWOOD SMITH 
: I probably will not take the full time but we now have a Minister in the Chamber who understands the legislation which is helpful. 
During my last call I asked a reasonable question about Supplementary Order Paper 136. We have established that that Supplementary Order Paper incorporates in the rewrite the provisions of the Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 and we acknowledge that there are some risks around that because it has never been to a select committee. But a previous Minister in the chair was able to assure us that the tax professionals—the Institute of Chartered Accountants of New Zealand—and the Law Society believe that the wording is satisfactory in respect of those measures particularly the fair dividend rate measures and the portfolio investment measures. 
But in my last contribution in this debate I raised the issues around Part M of the Income Tax Bill—Part M being the Working for Families tax credit provisions. When the Finance and Expenditure Committee looked at this rewrite of the Income Tax Act it concluded that Part M was too complex to include in it—and that is mentioned on page 7 of the select committee’s commentary on the bill—yet Supplementary Order Paper 136 includes a whole lot of rewritten provisions of Part M. It particularly includes the new Subpart MK “Tax credits for KiwiSaver schemes and complying superannuation funds”. The point I made in my last contribution was that if I recollect correctly the legislation that this bit rewrites was passed through all stages following Dr Cullen’s presentation of the last Budget. Tax credits for savings were all part of that legislation. That legislation has never therefore been to a select committee; it went through all stages straight after the presentation of the Budget. We are now incorporating those provisions as I read Supplementary Order Paper 136—the parts that rewrite Part M of the Income Tax Act—in this rewrite without their having been referred to a select committee. 
The issue I want the Minister to address—Dr Cullen is here now and he may be able to give the Committee some assurance—is whether all those involved in the rewrite have had a thorough look at these rewritten arrangements for the Budget legislation. I presume they actually rewrite the Budget legislation which went through all stages just a short while ago. I would like the Minister to assure us that there are no technical problems around these changes because they are quite significant. Part M is now being changed; instead of being tax credits for families it is now tax credits paid in cash and there is a families bit and a bit to do with superannuation savings schemes. I believe we deserve to have from the Minister an absolute assurance that these measures have been thoroughly examined by the various professional organisations and the rewrite advisory panel because no select committee has ever had the opportunity to look at any of that legislation. 
The question was put that the amendments set out on Supplementary Order Paper 136 in the name of the Hon Peter Dunne be agreed to. 
Amendments agreed to. 
Clauses A1 and A2 Parts A to Z and schedules 1 to 52 as amended agreed to. 
Bill reported with amendment. 
Report adopted.