Nash StuartHon STUART NASH (Minister of Revenue): I will take time to address the honourable member Amy Adam's concerns but first of all I must correct something I said to the Rt Hon David Carter. A binding ruling is binding on the commissioner but not binding on the taxpayer. However I made a mistake when I said an advance pricing agreement (APA) is not binding on the taxpayer. An APA is actually binding on the taxpayer. So I do apologise to the member for that.In terms of the Hon Amy Adams officials do consider the current drafting in the bill achieves the policy that was recommended by the Finance and Expenditure Committee. Keeping in mind that this bill has been gone over with a fine-tooth comb as has every tax bill but simply because of the complexity of this the thing is that there is actually no—and this is again we're getting into the nitty-gritty of this—legal existing definition of a tax investigation so adding a reference to a tax investigation could lead to uncertainty and disputes about what qualifies as a tax investigation.So if a commissioner hadn't notified the taxpayer within four years then the tax position is final. So the company puts in a return—if the commissioner has not started an investigation within four years then the tax position is final.Hon Amy Adams: But the bill doesn't say that.Hon STUART NASH: But that is just the law.Hon Amy Adams: But it's not the law.Hon STUART NASH: It is the law.Hon Amy Adams: Where? Where in the law does it say that?Hon STUART NASH: The current provision is certain that the commissioner needs to explicitly notify the taxpayer that they are applying the provision.Hon Amy Adams: They could do that in every case.Hon STUART NASH: And you're dead right and the thing is that we can clarify this position by using the inland revenue's administrative guidance but not every detail of every tax rule is included in the legislation especially administrative rules. But let me make one thing clear—let me make one thing clear. So a taxpayer puts in a return. If the inland revenue (IR) or the Commissioner of Inland Revenue has not queried that within a four-year period then the tax position is final. Then the tax position is final—that is the law.Hon Amy Adams: No it's not the law.Hon STUART NASH: No what it says here—Hon Amy Adams: It doesn't say that in the bill.Hon STUART NASH: No what it does say here is if however this is queried within that four-year period then the commissioner has the ability to extend that for seven years. I quote new section GC 13(6) set out in clause 36(4) Despite the time bar the Commissioner may amend an assessment for a tax year (the assessed year)"—I'm not going to read it all—"in order to give effect to this section and to sections [blah blah blah] … in which a return of income is made for the assessed year if at any time in the period of 4 tax years after the return year the Commissioner notifies the taxpayer that this subsection applies."Now I believe—having read and gone over these as our revenue spokesperson and now our revenue Minister for about seven of my nearly nine years in this place I think this is clear. The officials believe this is clear so in that case—[Interruption] No no—read this section again and I think that you'll find that it is clear. And just to clarify one last time a company puts in a return. If the IR has not queried that return within four years there is no problem—OK? There is no problem whatsoever—the tax position is final. If within that four-year period—and it states it here—IR queries the return if "a return of income is made for … assessed [period] if at any time in the period of 4 tax years after the return year the Commissioner notifies the taxpayer that this subsection applies." What that actually means within that four-year period—[Interruption] Well I'm just quoting it again. If the commissioner notifies it then the commissioner may amend the assessment in order to give effect to the section. I believe this is clear and I wrote—you know I did a Master's in law on this sort of stuff. To me this is clear and I'll leave it at that."