Moroney SueSUE MORONEY (Labour): Thank you for the opportunity to make a contribution to the Taxation (Annual Rates for 2016-17 Closely Held Companies and Remedial Matters) Bill which deals with a number of remedial matters.I want to refer to clauses 306 and 309 of the bill which deal with prize money for the racing industry and how that is dealt with in taxation terms. People might be interested to know that for some time now the regime of GST has operated in a way where if you are fortunate enough to be one of those lucky people who takes their horse to the races and the horse wins or gets some prize money—and normally that is up to fourth or fifth place in New Zealand racing—the prize money is deemed to be a supply of goods. It is a payment to the owner or owners of the horse for supplying the horse in the race which of course becomes the business of the racing club. The racing club is actually making money off the fact that the horse is racing and therefore that is how it is treated in terms of GST.It appears that what this change does in this legislation is actually include greyhounds as well and I think that is right and proper because it is part of the racing industry after all. Initially the clauses just referred to horses and I see that now greyhounds are included as well so that is good to see. My question is around what happens if there is prize money for a dog through a dog show. How is that to be treated under this legislation? Is it treated the same way if the dog competition—the dog show for example—offers prize money to the winning dog? Is that something that is dealt with under this legislation or not? It seems that it might be depending on whether it is a taxable activity.Certainly what I know of the racing industry is that for some people it is their income and so it is a taxable activity but for quite a few of us this is our entertainment value. We never really expect to actually make an income or a living out of it but we have a great time dreaming about the money that our horse will win. I have a dream at the moment that a horse I have a tiny tiny percentage share in is going to win the Derby next year. So there is my tip; I will give it to you right now. He has not got a name yet so I cannot even tell you the name so you will never know whether I am right or not about this but this is part of the excitement of the whole industry. People do have these dreams and you never know whether they are going to be realised or not.The income coming from that and how it is treated tax-wise can be somewhat of an unknown entity but I think from what I read of these parts of the bill it does actually matter whether the racehorse owner who received the money is involved in this activity as a taxable activity where they derive an income or whether it is as I said for many of us hobbyists something that we do although we never really expect to make an income out of it. We expect to pay for our horse to be trained to have the great thrill we hope of watching our horse step out on race day and watching it go around; and maybe—maybe—to have it pick up a prize. If it does I can tell people from personal experience there is just about nothing more exciting.So it is going to be extended to greyhounds as well. I have also had the thrill of owning a tiny part of a racing greyhound. That can be just as thrilling and also obviously should be treated in the same way. I have just a few questions if Minister Collins would care to clarify the circumstances under which these amendments would apply particularly around whether we are going to name particular breeds of dog. I see that when we talk about horses we just talk about horses—we do not say thoroughbreds; we do not say standardbreds; we just say horses—but when it comes to dogs apparently it is just greyhounds.