Genter Julie Anne: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeGenter Julie Anne: Oral Questions — Questions to Ministers[Sitting date: 12 May 2016. Volume:713;Page:11045. Text is incorporated into the Bound Volume.]1.JULIE ANNE GENTER (Green) to the Minister of Revenue: Would greater disclosure requirements in our foreign trust regime reduce the potential use of foreign trusts for tax evasion and money laundering?Hon MICHAEL WOODHOUSE (Minister of Revenue): The question is a hypothetical one and it is not possible to say what impact such an action would have because we know that people use trusts for many many reasons. But as the member knows the Government has asked John Shewan to conduct a review of that disclosure regime and I will await the outcome of it.Julie Anne Genter: Is the Minister really saying that it is not possible to know whether greater disclosure would help reduce the abuse of foreign trusts?Hon MICHAEL WOODHOUSE: It may surprise the member to know that I cannot see into the future. So yes it is possible.Julie Anne Genter: So just to be clear the Minister does not think that greater transparency would enable the Inland Revenue Department (IRD) to ascertain whether New Zealand foreign trusts were being abused or not?Hon MICHAEL WOODHOUSE: That was not the question I was asked. In fact the member did ask that question yesterday and I refer her to my answer then.Julie Anne Genter: Does the Minister think that if we had greater transparency and disclosure around our foreign trusts corrupt Maltese officials one of America’s most wanted fugitives the disgraced former chief executive officer of Petroecuador and the indicted Speaker of the House in Brazil would have been able to use New Zealand foreign trusts or shell companies to shield their illicit activities?Hon MICHAEL WOODHOUSE: That question is best directed at the subjects named in that question.Julie Anne Genter: I raise a point of order Mr Speaker. I am not sure why the Minister thinks the question should be directed to the—Mr SPEAKER: I think the difficulty was the length of the question and the incorporation of names but on this occasion I am going to invite the member to ask the question again. Maybe I can get a better lead on where the question is going and then judge whether the Minister has adequately addressed the question. Julie Anne Genter to repeat that question.Julie Anne Genter: Thank you Mr Speaker. If we had greater transparency around our foreign trusts would corrupt Maltese officials one of America’s most wanted fugitives the disgraced former chief executive officer of Petroecuador and the indicted Speaker of the House in Brazil have been able to use New Zealand foreign trusts or shell companies to shield their illicit activities?Hon MICHAEL WOODHOUSE: As I cannot see into the minds of the people who have set up those trusts and therefore do not know what their purposes are I am unable to answer the question.Julie Anne Genter: Does the Minister not think it would be helpful to have more information available—for the IRD to have more information so it can clearly determine whether a trust is legitimate or not thereby helping his Government avoid embarrassing mishaps such as linking Greenpeace and Mojo Mathers to the likes of Panamanian tax avoidance firm—Mr SPEAKER: Order! Bring the question to a conclusion.Julie Anne Genter:—Mossack Fonseca?Hon MICHAEL WOODHOUSE: I did answer that question yesterday the day before and I think last week but I will remind the member that the IRD is very satisfied that when it needs the information a full description of the activities of the trust is available on request and proactively if necessary.Julie Anne Genter: Will he broaden John Shewan’s review to look at the use of trusts shell companies and look-through companies as vehicles for tax evasion given they have all been used by Mossack Fonseca to dodge tax and facilitate corruption?Hon MICHAEL WOODHOUSE: I see no reason to do so particularly given that the issue of look-through companies and shell companies for use as vehicles for some purposes that might not be consistent with tax law has already been fixed.Julie Anne Genter: Why will he not broaden the terms of reference for that inquiry given that New Zealanders deserve to know that his Government is going to do the right thing not just what is in the interests of the foreign trust industry and its lobbyists?Hon MICHAEL WOODHOUSE: I refer the member to my answer to the previous supplementary question.