Dunne Peter: Taxation (Depreciation Payment Dates Alignment FBT and Miscellaneous Provisions) Bill — Third Reading 
Dunne Peter: Taxation (Depreciation Payment Dates Alignment FBT and Miscellaneous Provisions) Bill — Third Reading 
[Volume:630;Page:2093] 
Hon PETER DUNNE (Minister of Revenue) 
: 
 I move  
That the Taxation (Depreciation Payment Dates Alignment FBT and Miscellaneous Provisions) Bill be now read a third time 
. This bill gives effect to a number of business-friendly tax measures that were introduced in last year’s Budget with the primary objective of promoting and sustaining New Zealand’s economic growth. The measures that the bill includes are inherently technical but are extremely important. They include for example proposed changes to tax depreciation rules aiming to ensure the more productive use of capital—a package that over the next 4 years alone will amount to $1 billion in revenue forgone by the Crown in the interests of fostering economic growth. 
The measures also include a series of changes aimed at making the tax side of business a little bit easier for the many small businesses in New Zealand. We have made changes to the provisional tax date fringe benefit tax and GST rules in terms of the dates by which returns have to be filed. We have introduced the notion of compensation for payroll agents and a range of other measures that make it that little bit easier to do business in New Zealand. We recognise the contribution that our small to medium sized business sector in particular plays in promoting and sustaining New Zealand’s economic growth. 
The bill also contains some important measures aimed at improving our access to worldwide capital skills and labour and it recognises the contribution that returning New Zealanders and new residents make to this country by allowing the forgoing for a period of some of their overseas tax obligations once they return to this country. During the Committee stage there was some debate about this particular set of provisions and the relationship they had to certainly our major market Australia and how comparable they might be. In essence the situation we arrived at was that these changes are positive. They have been amended by the select committee from what was originally proposed. In many senses they are not quite apples and apples with Australia because of differing conditions and differing interpretations in that country regarding residence status. But they are a start and a step in the right direction and I gave an undertaking that particularly the 10-year limit that is imposed by the bill will be kept under review as we move forward. 
There are other significant measures in the bill. An important change which has been widely welcomed was introduced by way of a Supplementary Order Paper to deal with the issue of what has become known as an unacceptable tax position. That issue arose out of the 1996 penalties regime whereby a genuine error by a taxpayer or an agent acting on behalf of the taxpayer hitherto potentially attracted a penalty compounding at 20 percent but the changes mean that a discretion is now available to the commissioner to apply some judgment in favour of the taxpayer in such circumstances where it is clear that the action has arisen as a result of a genuine error. That move has been widely welcomed and understandably so. I indicated to the Committee that it was an interim step pending a wider review later this year of the penalties regime although I expected that the change made in this bill will not be inconsistent with the changes that are to come a little later on. The bill also gives effect to changes to both the depreciation regime for bloodstock and also the duty applicable to racing clubs pursuant to the agreement between the Labour-led Government and the New Zealand First Party. I imagine that the Minister for Racing will take a call a little later in the debate to speak about those matters in more detail. 
I simply want to say at this stage that I acknowledge the contribution of my own officials in the Inland Revenue Department the officials in Treasury and those responsible for the drafting of this bill. It is a very thick tome as these essentially remedial matters usually are and it is in clear English—as best as tax legislation ever will be. I acknowledge those who made submissions to the bill. I acknowledge the regulars like the Institute of Chartered Accountants of New Zealand and the Law Society and the many other groups that made submissions to the select committee and had an input. I appreciate the consideration that Mr Shane Jones and other members of the committee gave the legislation over a long period of time and the amendments they recommended which we were pleased to adopt. 
Finally I want to acknowledge the members of the House who contributed to the debate last evening. I thought we were able to have a pretty robust and informative Committee stage debate. I appreciate the support of virtually all parties in the House for the measure. 
Dr the Hon Lockwood Smith 
: Except for the colleague on your right. 
Hon PETER DUNNE 
: I did say I appreciate the support of virtually all members of the House. I was also gratified by the abstention of some not turning into outright opposition and I shall say no more on that point. 
I commend the Taxation (Depreciation Payment Dates Alignment FBT and Miscellaneous Provisions) Bill to the House and I observe as I close that this must be one of those rare occasions where near unanimity has been achieved in the passage of tax legislation. I certainly cannot recall offhand—I am looking at one or two of my advisers at the other end of the Chamber who may be able to dredge their memories and prove me wrong—in the time I have been here another bill that has been as well received as this one. Maybe that is a harbinger of good things to come. I commend the bill to the House.