Dunne Peter: Income Tax Bill — First Reading 
Dunne Peter: Income Tax Bill — First Reading 
[Volume:635;Page:6795] 
Hon PETER DUNNE (Minister of Revenue) 
: 
 I move  
That the Income Tax Bill be now read a first time. 
 Later I shall recommend to the House that the bill be referred to the Finance and Expenditure Committee for consideration. 
This bill marks the final chapter in a massive project that began with the recommendations made by the Valabh committee way back in 1992. I acknowledge the work that Arthur Valabh has done for various Governments through a number of consultative tax committees over the years. The recommendations of his 1992 committee were to refine the structure of the Income Tax Act and to progressively rewrite it in plain language part by part. This bill completes that task. 
The purpose of the rewrite of the Act is to make the legislation easier to understand and apply which in turn will make it easier for users to comply with their own tax obligations. For that reason the drafting of the new legislation has been done in a new plain-language style. Where possible the bill avoids unnecessary legal or archaic terms and repetition between various parts of the Act. When referring to the Act readers should be able to understand the way the tax rules have been written and apply them without confusion. Sentences have been shortened where possible and the language used is more concise. Legal terms and phrases such as “hitherto” and “hereinafter” have been culled or replaced with more modern language. In addition some areas of the legislation have been consolidated for greater clarity while other changes in this bill aim to improve the overall structure of the Act. In the matter of style the changes in this bill are significant although the overall intention of the Act and its meaning remain the same. 
 As a result of the sheer size and complexity involved in this project it has been completed in four stages. The first stage was the rewriting of the Income Tax Act 1976 which resulted in the Income Tax Act 1994. The second stage focused on refining the structure of the Act and rewriting its core provisions and was completed in 1996—something as Minister at the time that I remember well. The third stage the rewrite of Parts C to E of the Act was completed in 2004. As I mentioned this bill represents the fourth and final stage of the project. It contains the redrafted Parts F to the end of the Act. It re-enacts and consolidates Parts A to E and it renumbers various sections contained in those parts. 
Several intended small policy changes to the legislation are also included in the bill and they have been subject to the usual public consultation process. Once enacted this new Act will apply to income derived from the 2008-09 income year. 
At 2704 pages and in four volumes this bill is a massive achievement for everyone involved. It reflects the work of a small team of public and private sector drafters and tax policy analysts over a number of years under the watchful eye of the Rewrite Advisory Panel and its chair Sir Ivor Richardsdon. They have done a magnificent job and I pay a particular tribute to Sir Ivor for his vigilance and conscientious dedication to this task over a long period of that time. 
In that regard I also refer to comments made as recently as August by the Rt Hon Sir Geoffrey Palmer in an address to the Law Commission. He said: “The most innovative accomplishment in New Zealand tax law has been the re-writing of the tax legislation in user-friendly language and an easy to use format. This sounds a simple enough process but it was so difficult that Australia gave up on it. … This whole process has been accomplished in New Zealand without much fuss and with modest expense. It is a considerable achievement.” I agree entirely with that sentiment and add my congratulations to all of those who are involved in the rewrite project. 
I underscore Sir Geoffrey’s point that we have now with this legislation completed the project. Our Australian counterparts failed to do so. The British have looked at rewrite legislation and have also not managed to achieve that. Sir Ivor and his advisory panel the rewrite team and everyone who has been involved in this process can be very proud of the achievement that this bill represents today. So it is with much pleasure that I commend the Income Tax Bill to the House.