Smith Lockwood: Taxation (Annual Rates Venture Capital and Miscellaneous Provisions) Bill — In Committee 
Smith Lockwood: Taxation (Annual Rates Venture Capital and Miscellaneous Provisions) Bill — In Committee 
[Volume:621;Page:16586] 
Dr the Hon LOCKWOOD SMITH (National—Rodney) 
: 
 I want to speak to Part 3 which amends the Tax Administration Act because I want to pick up from where the Hon Richard Prebble left off. I am not yet convinced that there is nothing in this bill designed to get John Tamihere off the hook for cheating on tax. We know this Government. When Harry Duynhoven tried to cheat on citizenship the Government changed the law. We know that the Prime Minister forges paintings and thinks that is acceptable. What kind of mischief is this Government prepared to get up to to change the law to help John Tamihere who cheats on tax? 
Let us have a look at Part 3. Let us have a look at the clauses here. Taxpayer assessment—[ 
Interruption 
] Listen to that member! She should think a bit before she gets into that. Let us look at clause 92. [ 
Interruption 
] 
The CHAIRPERSON (Hon Clem Simich) 
: I ask the member to apologise for that please. 
Hon Annette King 
: Apologise for what? 
The CHAIRPERSON (Hon Clem Simich) 
: Apologise for addressing the Chair in that way. 
Hon Annette King 
: I apologise. I raise a point of order Mr Chairperson. I have been sitting here for the last 10 minutes and we have had a debate that has nothing to do with this bill. It is a continuation of the Wednesday debate and no action has been taken to stop it. 
The CHAIRPERSON (Hon Clem Simich) 
: I will decide what is relevant and what is not. Dr Lockwood Smith was coming to the bill. It was not easy for him because of the noise from the Government side and I would ask members if they want to carry on in that way to take a call but not to do it again from a seated position. 
Dr the Hon LOCKWOOD SMITH 
: They are all huddled around because they know they risk a by-election because they know a resignation from Cabinet is not where it stops. They know the Serious Fraud Office will have John Tamihere out and they are worried about a by-election. 
I want to come back to these clauses. Let us have a look at clause 92 “Taxpayer assessment”. Is the Government going to change the law to remove the liability on taxpayers to be honest about the taxes they have to pay? Let us have a look at what they say under clause 92. Will the Government change the law to let John Tamihere off for not being honest about the tax he had to pay? I have to be fair as I look at clause 92(4). Whatever changes the Government is making are to apply from 2004-05 onwards so it appears not to be retrospective to let John Tamihere off the hook. That is clause 92. 
Let me then go to clause 105 “Late filing penalties” and clause 106 “Tax shortfalls”. Is this Government up to sneaky stuff here to get John Tamihere off the hook for failing to pay his taxes? I look at clause 106 and it appears to me—well let us look at late filing penalties because it seems there could be some late filing penalties if nothing more when one dodges one’s tax and does not pay it. It seems that that applies to annual imputations and it would not apply in the other case. 
Again Clause 106 “Tax shortfalls” appears to relate to matters after 1 April 2005. I accept that that clause is not designed to get John Tamihere off the hook. [ 
Interruption 
] He is still a member of Parliament. People who cheat and do not pay their tax do not deserve to be members of this Parliament. 
We go then to clause 116 which is about write-offs by the commissioner. Is the commissioner going to write off what John Tamihere owes? He owes a bit of money. He received $200000 as his golden koha. Even if we do not gross it up there is $80000 in that. But gross it up and it is a lot more that he owes. Is the commissioner going to write it off? No I have to confess that clause 116(2) states that this will apply “after the date on which this Act receives the Royal assent.” I accept that clause 116 looks OK. 
I turn to clause 118 “Remission for reasonable cause”. If the Prime Minister says we have to let John Tamihere off the hook is that reasonable cause? Look at clause 118 “Remission for reasonable cause” carefully. It states: “Section 183A(1) is replaced by the following: … (f) Maori authority distribution penalty tax … ”. Is that a sneaky one designed to get John Tamihere off the hook? I do not know.