Yule LawrenceLAWRENCE YULE (National—Tukituki): I wish to come to clause 111 in Part 3 which deals with really the exclusion for the dwelling or the main house exclusion. I wish to ask the Minister in the chair Kris Faafoi in particular under clause 111(1) where there is a replacement section CB 16(1)(b) where it says it's replaced with the dwellinghouse was occupied mainly as a residence by—(i) the person: (ii) if members of the person's family live with them the person and members of the person's family living with them:" and "(iii) if the person is a trustee 1 or more beneficiaries of the trust." Now I struggle to understand what the third one means really because what that really says is if a person is a trustee then somehow they can be excluded from the residential provisions and then it goes on: "1 or more beneficiaries of the trust." Now bearing in mind this is a new section or an amendment and then it's left to further parts in clauses 112 and 113 in which really the same wording is used I'd like the Minister to explain exactly what they mean—"if the person is a trustee 1 or more beneficiaries of the trust."—and whether that actually makes sense.I say that because as we go into these provisions and as we look at and the Government looks at what the tax working party has come up with in terms of capital gains these types of provisions and the wording and understanding of them will form the basis on which a lot of New Zealanders make decisions on property investment and their taxation affairs. I'd like the Minister to explain how that clause 111(1)(b)(iii) actually reads and is meant because as we go through this—and I've already been in contact with some lawyers and accountants who are relishing the opportunity of finding workarounds particularly in the capital gains tax.Hon Scott Simpson: Huge business opportunity.LAWRENCE YULE: A huge business opportunity. We need to understand what this means and I must confess I don't at this point. If you then go on to look at further provisions under the bill which deal with exclusions then you'll see that they're mentioned in 112 and 113 as I've said but the same clause is not mentioned in 111. If you then look at 110 which deals really with the brightline test within five years and then you go further down to the 10-year test which is mentioned in other parts of this bill we need to be really careful that we get the definitions right. If I look at 110 it says that "In section CB 16A(2)(b) [we're going to] replace 'residential land' with 'residential land described in subsection (1)'."Then I go down to the next part which says "Subsection (1) applies to a person's disposal of residential land if the date that person first acquires an estate or interest … is on or after 1 October 2015." That is when the first brightline test was introduced by the previous Government and then it was carried on and extended by two years under this Government. So what I'm really seeking assurance—and I know the Minister doesn't really want to answer questions in this House because it's not necessarily his area of expertise but what I'm saying is this same legislation will be repeated in future taxation legislation should a capital gains tax come in and I think it's really important that under clause 111(1)(b)(iii) we understand what a trustee's roles are in an exclusion process and what "1 or more beneficiaries" means. We need to get it right because it will make a fundamental difference to tax planning matters for New Zealanders. Thank you Madam Chair."