Tabuteau FletcherFLETCHER TABUTEAU (NZ First): Thank you for the opportunity to speak to this legislation this evening. I want to go straight into some technical questions for the Minister in the chair Alfred Ngaro and I speak specifically about Part 2 clauses 36 37 and 38 if memory serves. I apologise I do not have the reference straight in front of me but—37 38 and 39 actually. I make specific reference to the facility of tax pooling for companies. My question to the Minister arises from some submissions and conversations with business out there because what we are seeing with this legislation at the moment is a kind of barrier set in place around the $5 million mark for businesses in terms of the new accounting income method (AIM) procedures in terms of the new accounting reporting systems available to business which New Zealand First wholeheartedly supports by the way. But what my question is—and if you will forgive me Mr Chair I will read some quotes here. What we are talking about when we refer to pooling is that it enables clients who have not paid enough provisional tax to purchase an overpayment from another taxpayer who has paid too much provisional tax and in so doing there is this balancing mechanism used by these pooling firms to meet the obligation of tax companies and their requirements to the IRD. What this new legislation does at this stage—I understand IRD is in conversations to extend this out and have conversations with business about extending this cap but there is a cap at the moment. So the feedback to New Zealand First is that actually this undermines some really good and sensible tax practice for some large firms in New Zealand that want to meet their tax obligations that want to meet their requirements—in fact some of them are so earnest in their efforts they are overpaying obviously while others have underestimated their contribution commitments but in so doing being part of this pooling system they have the flexibility to use this function to meet their commitments.So to the Minister this evening please can you explain why there is this cap and what the function is that the ministry believes it serves. Perhaps we are mistaken in believing that actually it does facilitate good tax practice and good commitment to tax obligations and their timely payment. Why is there that cap and why are we cutting out a significant size of large businesses in New Zealand being able to comply with their tax requirements?I went through that a lot quicker than I thought I would so I would like to acknowledge the words of the previous speaker Grant Robertson—Grant Robertson: Oh that's a good idea.FLETCHER TABUTEAU: Yeah yeah—exactly. He spoke most eloquently and encapsulated my thinking on the current tax situation in New Zealand. I would just like to iterate a few of those points. The Government in this legislation in Part 1 has brought us to a point where we are meeting our obligations as outlined by the Shewan report. New Zealand First had some difficulty with the history that got us to the point but as has so eloquently been pointed out we are here now and the Government has made a sincere move in the right direction to ensure that foreign trusts meet their obligations in terms of transparency and reporting.Andrew Bayly: I agree totally.FLETCHER TABUTEAU: I do look forward to Mr Bayly's contribution elucidating and elaborating in great great detail. But the AIM section of this legislation is something that New Zealand First has been advocating for quite a few years now and it is actually sincerely with great excitement that we do see this in this legislation.Hon Clayton Cosgrove: Excitement?FLETCHER TABUTEAU: Yeah sincerely—excitement. You talk to small business and they love it.So we are pleased to support all parts of this legislation going forward and I do look forward to further contributions this evening. Thank you.