Swain Paul: Third Readings 
Swain Paul: Third Readings 
[Volume:607;Page:4311] 
Hon PAUL SWAIN (Associate Minister of Revenue) 
 on behalf of the 
 Minister of Revenue 
: I move  
That the Taxation (Maori Organisations Taxpayer Compliance and Miscellaneous Provisions) Bill the Taxation (Annual Rates of Income Tax 2002-03) Bill the Student Loan Scheme Amendment Bill and the Child Support Amendment Bill be now read a third time 
. The bills encompass a wide range of issues that reflect the Government’s continuing commitment to simplifying the tax system reducing tax compliance costs protecting the revenue base and producing a better and more effective tax law through the regular introduction of remedial legislation. 
The most prominent feature of the Taxation (Maori Organisations Taxpayer Compliance and Miscellaneous Provisions) Bill is its modernisation of the tax rules that relate to organisations that manage Maori assets held in communal ownership. The new rules will relieve much of the unnecessary complexity and restrictions that the present rules impose upon these organisations. The changes will apply only to organisations that manage communally owned Maori assets whose use and management are heavily restricted by legislation or Government process. 
Another important feature of this bill is its further fine-tuning of the relatively new legislation that relates to taxpayer compliance and to penalties for non-compliance with the law. One of the main changes here gives the Inland Revenue Department greater flexibility by allowing it to take into account taxpayers’ good behaviour when it imposes penalties for tax shortfalls. Other related changes include a new penalty on promoters for certain kinds of tax arrangements and provisions that strengthen and clarify the Inland Revenue Department’s vital information-gathering powers. 
The bill introduces two tax simplification measures that will be of special relevance to small businesses. One relates to employers’ PAYE obligations and the other to the payment of provisional tax. Both involve businesses making use of private-sector intermediaries to help them to meet their tax obligations. The bill clarifies the GST treatment of cross-border supplies of telecommunications services and simplifies the tax treatment of outbound telephone calls. Similarly it also clarifies the GST treatment of international passenger cruises that visit a number of New Zealand ports. 
The bill rationalises several aspects of the law that relates to tax and charities. The changes include an increase from $500 to $630 in the maximum amount that people can claim as a tax rebate for donations to charity. The public-benefit test has been relaxed so that the charitable entities are not automatically excluded from income tax exemption just because their members are connected by blood ties. In a similar vein the bill accords marae the same status as public halls and churches. The bill also gives effect to the Government’s announcements last year that the crew members of visiting superyachts would be exempted from paying income tax in New Zealand. 
Finally the Taxation (Annual Rates of Income Tax 2002-03) Bill confirms the income tax rates that will apply for the 2002-03 year. I am pleased that the bills have reached their third reading stage. I would like to thank all those who contributed to their passage the many individuals and organisations that made submissions on the proposed legislation the officials who worked on the bills and supported their passage the Finance and Expenditure Committee for its careful consideration of the proposed legislation and of course the fine Minister who steered it through the House. I commend the bills to the House.