Gilmore Aaron: Taxation (Tax Administration and Remedial Matters) Bill — Second Reading 
Text is incorporated into the Bound Volume 
Gilmore Aaron: Taxation (Tax Administration and Remedial Matters) Bill — Second Reading 
[Sitting date: 14 July 2011. Volume:674;Page:20142. Text is incorporated into the Bound Volume.] 
AARON GILMORE (National) 
: 
 It is always an honour and a privilege to follow the member who has just resumed his seat Shane Jones. I remember when he had a future and I remember when he had an idea that he might be the leader of the Labour Party. We have just heard from Mr Jones that he has no idea about the Taxation (Tax Administration and Remedial Matters) Bill Labour’s tax policy or anything else—great orator and user of flowery language though he may be. 
Today some amazing stuff was put forward by the Labour Party and I want to take a little time to talk about it. The bill before us is about simplifying the tax system so that it works more efficiently and operates in a way that reduces compliance costs for New Zealanders. It takes away $70 million of compliance costs that apply to mums and dads up and down the country. But today we heard the Labour Party put forward the absolute opposite. 
We heard the Shane Jones talk about simplifying the tax system but what has been announced today is a boon for tax accountants and lawyers up and down the country. Thousands of tax accountants up and down the country will be looking at Labour’s announcements and rubbing their hands with glee. They will think that although they are losing $70 million in fees with the removal of gift duty one side will give back to them what the other side has taken. Labour has put in place a policy that tax accountants up and down the country will be rubbing their hands with glee about. 
Labour has announced a system so complicated convoluted and ridiculous that I do not think even Labour members understand it—and we heard that in the speech made by Mr Jones. Mr Jones outlined some things yet he did not even understand what the existing bill is trying to do. It is pretty clear that whatever the situation is Labour’s numbers do not add up. 
Last night we heard Mr Huo talk on this bill. He said that any bill that takes about $70 million in costs and raises half a million dollars in net revenue is not a good idea. We heard Mr Parker talk on this bill last night. He talked about his fetishes with Filipino brides and made a reference to incest and he said this bill would enhance those things. I was outraged as were a number of my colleagues. It was completely irrelevant to what was under way and I encourage people to go and listen to it. 
The situation at the moment is that 44 percent of households pay no net tax—44 percent of households. In New Zealand 17 percent of households pay 97 percent of tax—17 percent pay 97 percent of the tax. This bill goes some way to try to address that situation. It puts in place a simplification procedure it reduces the costs by removing gift duty and it puts in place an arrangement whereby portfolio investment entities have more flexibility to invest in things that are productive in New Zealand. It allows these entities to invest more into land—up to 20 percent. It allows the ability to put in place other simplification procedures that cover the reduction of costs to taxpayers up and down the country. 
That is what our Government truly believes in—reducing the burden on taxpayers so that they can put that money into productive enterprises. When we reduce costs by $70 million with the removal of compliance costs in respect of gift duty it does not mean that some tax accountant—who may be a former friend of mine—buys a new BMW this year. It means that that money will sit in the back pockets of Kiwi mums and dads and they can spend it on productive useful things. 
Those are the key aspects that came out of the report of the Finance and Expenditure Committee. It was not about scaremongering and saying we could not protect assets with the removal of gift duty; it was about reducing costs for hard-working Kiwi mums and dads so that they could keep $70 million in their back pockets and invest it more wisely and productively in the things they choose to invest in. 
The only shame is that if a fluke occurred in the near future and there was a change in Government much of that $70 million would be taxed at a ridiculous level. But given the polls we saw at the weekend I am pleased to say that that is very unlikely. Despite what Labour members have said today and last night I think that they truly believe it is right to incur $70 million in costs. That cost is completely unnecessary and we do not know what purpose and benefit it is for. We believe in reducing the tax burden so that New Zealanders can get ahead and I think that is a positive thing. It will help us to steer the way towards the brighter future that we really believe in. Thank you.