Carter David: Taxation (Annual Rates Venture Capital and Miscellaneous Provisions) Bill — In Committee 
Carter David: Taxation (Annual Rates Venture Capital and Miscellaneous Provisions) Bill — In Committee 
[Volume:622;Page:17361] 
Hon DAVID CARTER (National) 
: 
 The Minister owes the Committee the duty to respond to more than just Brian Connell’s question regarding the issue of whether interest will be paid. A more important question arises out of clause 134 with regard to the refunding of excess tax. That refund is available if taxpayers can go to the commissioner and prove that they may for one reason or another have paid an excess of tax but they must do so inside a period of 4 years. I ask the Minister: why 4 years? I think I am right in saying that taxpayers currently have the ability to apply for a refund of excess tax within an 8-year period. But here we have a Government so intent on overtaxing New Zealanders that it is making a further attempt—that is how this looks to me—to close down any possibility for taxpayers who make a genuine mistake to be able to approach the Commissioner of Inland Revenue and demonstrate that they have made a genuine mistake. Now the Minister is so tight and so keen to obtain that money that he is halving the time available for those particular taxpayers to realise they have made a mistake and to make application. 
I was not on the Finance and Expenditure Committee and I fully accept that I may not be interpreting the law properly. Tax law by its very nature is very complex. But it seems to me that I am interpreting it properly and if that is the case the Minister must realise that a taxpayer—perhaps in a business where he or she is not deeply involved in the letter of the law regarding tax—or a taxpayer’s accountant may take some time to pick up the fact that a genuine mistake has been made with a tax return. If that is the case the taxpayer can then go to the commissioner and say: “In all honesty I have made a mistake and I’ve paid about $10000 in excess tax.” and can demonstrate that to the satisfaction of the commissioner. But now Dr Cullen has come into the Chamber and said: “Aha you had 8 years to do it but we’re going to halve that opportunity.” Not only does Dr Cullen want New Zealanders not to get their excess tax payments back but he is also intent on building magnificent and huge resources on the back of hard-earned tax. I wish the Minister would answer that. 
The other issue that intrigues me is contained in clause 145 an interesting clause that was unanimously struck out by the select committee. In the bill as introduced to the House that clause stated: “Section 57 of the Partnership Act 1908 is repealed.” 
Brian Connell 
: That’s simply the issue. 
Hon DAVID CARTER 
: Well I think there is a fixation in the House at the moment with partnerships and that is the very reason I raise the question of why that particular clause was ever there and what it actually meant. It had obviously existed without complication for the tax system since 1908 but along came Dr Cullen and it was probably another means of making sure he extracted every last dollar out of the poor suffering taxpayers of this country. So it was proposed that it would be taken out without any explanation. I thank Dr Cullen who looks as if he is seeking advice for the basis of that. There may have been a very legitimate reason but certainly when I look at the commentary on the bill I cannot see any notice of it. We now see that the select committee perhaps decided to toss it out but there are not many members of the select committee here in the Chamber from whom I can seek advice. 
Those are the two important points that I want the Minister to address. I would like an answer on the first point in particular which I feel very aggrieved about because it looks to me as though the Minister is trying to close down an opportunity for taxpayers who have made a mistake and made an overpayment of tax to be able to prove that genuine mistake to the satisfaction of the commissioner. Here is Dr Cullen closing down that opportunity in an attempt to drag more and more money into his coffers as he prepares himself for next year and the biggest electoral bribe we will ever see.