Connell Brian: Taxation (Annual Rates Venture Capital and Miscellaneous Provisions) Bill — In Committee 
Connell Brian: Taxation (Annual Rates Venture Capital and Miscellaneous Provisions) Bill — In Committee 
[Volume:622;Page:17361] 
BRIAN CONNELL (National—Rakaia) 
: 
 It is a pleasure to take a call on Part 4. I have taken calls previously on this bill and I have to say that components of it have left me feeling extremely uneasy. But to be fair to the Minister there are some components of Part 4 that I want to talk about and I refer to section 45 “Refund of excess tax” inserted by clause 134. I think this is rather meritorious. However I find it a little ironic especially after listening to Mr Cullen getting flummoxed at question time today when he was asked by the new member Kenneth Wang whether he could think of anything he has done to reduce taxation in this country. For the first time I heard him say: “I don’t know.” It was the first time I have found him short of a word. 
 It was ironic I thought that someone from the National Party had to stand up—Mr Key in fact—to say that there has been something which is the Maori rates of taxation. We will come to that in Part 5. The argument I am building relates to the matter of the refund on excess tax and the question I have for the Minister which I am hoping he might be able to help out with is: will interest be paid on the amount of the payment that is given back to the taxpayer? The provision may be there but after a quick glance I could not see any reference to it in this part. I think it is only fair and reasonable if someone is assessed by the Commissioner of Inland Revenue as having overpaid—if he judges that someone is due a tax refund—that that person should also be due the interest that has been carried on overpayment. I think the Minister is conferring with his officials in order to take a call and respond to that because it is a very fair question. 
The other concern I have is that having dealt with the Inland Revenue Department as a business person over the years and having mounted arguments with the department that there has been an overpayment of tax I the taxpayer have incurred the cost of proving my position. So although I feel it is meritorious that the Minister is now framing legislation that will refund excess tax paid I also want to ask him whether the costs incurred in proving that someone has paid too much tax will be reimbursed. I think that is a fair position. 
Hon Dr Michael Cullen 
: There’s nothing in this part about that. 
BRIAN CONNELL 
: There is nothing in this part about that? 
Hon Dr Michael Cullen 
: It’s the wrong part. 
BRIAN CONNELL 
: No it is not the wrong part. If we are talking about a refund on excess tax and if we are proven— 
Hon Member 
: Page 117? 
BRIAN CONNELL 
: Page 119. If the commissioner is saying that someone is due a refund because he or she has paid too much tax and that taxpayer has to incur the cost to prove that position is it not fair and equitable that that person also has his or her costs refunded for proving the point? 
Now over the last 2 or 3 years the Minister has struck me as being a fair man so I do not think that is an unreasonable question to pose. If he is saying to me that I can find an answer to it in another part then I ask him please to take a call and point out where that is. If not I ask that he takes advice from his advisers and tells the Committee what he intends to do about the issue. I remind him of my first question—that is: if there is a refund due on excess tax will the Inland Revenue Department put its hand in its pocket and pay the interest on that money just as any other taxpayer would have to do had the situation been reversed?