5. Rt Hon WINSTON PETERS (Leader—NZ First) Link to this
to the Minister of Revenue
Does he have confidence in his department’s ability to collect outstanding taxes; if so, what directions, if any, has he given when taxes are not paid in accordance with the law on goods and services tax?
Hon PETER DUNNE (Minister of Revenue) Link to this
Yes, I do have confidence in the department’s ability to collect outstanding taxes, and for that reason I have not issued any instructions or directions to the Inland Revenue Department. The Commissioner of Inland Revenue is responsible for administering the revenue Acts and is charged with collecting the highest net revenue over time that is practicable within the law, and I expect him to meet that obligation.
Rt Hon Winston Peters Link to this
Referring to section 6 of the Tax Administration Act 1994, what was the solution presented by the National Party to the department in its dilemma over non-payment of GST in the 2005 election; and is he satisfied that its solution upheld the integrity of the tax system, which is the subject of section 6 of the Act?
I am not permitted under the legislation to disclose the affairs of individual taxpayers. What I can say is that section 6 of the Tax Administration Act 1994 does impose obligations upon the commissioner with regard to the collection of revenue, and he needs to do so mindful of the resources available to him at the time and also of the duties and the responsibilities of the taxpayer concerned. I would expect those obligations to have been followed in this case as with every other case.
Hon Bill EnglishCan the Minister confirm that when National put legislation to the House to enable it to comply with the GST rules, Parliament objected, including New Zealand First, but that New Zealand First then voted for retrospective legislation to make sure it did not have to repay to the taxpayer all the money it owed after the Auditor-General’s report?
Rt Hon Winston Peters Link to this
I raise a point of order, Madam Speaker. On two counts, is that not an inappropriate question by the member, namely the Hon Bill English? Firstly, it raises a different issue, but, secondly, as a former Minister of Revenue he should know all about integrity, and that is why he is embarrassed today.
Madam SPEAKERI am not responsible for what happened in the House in the time that the member described, but, like him, I do recall what happened, and I am sure all members will draw their own conclusions. The key point is that the revenue Acts impose certain obligations upon the commissioner and taxpayers with regard to their responsibilities, and my role is to see that they are met.
Rodney HideRt Hon Winston Peters Link to this
I have paid it. [ Interruption] Oh yes, we have—unlike the National Party, and unlike, as I will demonstrate very shortly, that member! OK?
No, would the member please be seated. Interjections do provoke disorder, and we just saw an example of that. So I ask members to keep their interjections rare, otherwise I will be asking them to leave the Chamber if they create disorder. Now will the member just ask his question.
Rt Hon Winston Peters Link to this
Is the Minister concerned that no prosecution was brought against the National Party for its non-payment of $112,000 of GST after it blatantly and knowingly overspent its State-funded broadcast allocation during the last election campaign; and what message does that send to the hundreds of small businesses—
Bob ClarksonRt Hon Winston Peters Link to this
Well, here comes “Bob the Quitter”. Madam Speaker, I am trying to ask this question, and he is shouting out, having ripped off the ratepayers of Tauranga to the tune of $12 million for a stadium.
The member will please be seated. The only way we will get through this question is if it is heard in silence. Would the member please repeat it quickly.
Rt Hon Winston Peters Link to this
Is the Minister concerned that no prosecution was brought against the National Party for its non-payment of $112,000 of GST after it blatantly and knowingly overspent its State-funded broadcast allocation during the last election campaign; and what message does that send to hundreds of thousands of small business owners who are chased up by the Inland Revenue Department daily, due to overdue, non-paid GST?
We have a tax system that relies on fair compliance by all taxpayers. Clearly, when any taxpayer or group of taxpayers fail to meet their obligations, it not only creates a sense of unfairness within the system but certainly generates a feeling amongst other taxpayers that some people are getting away with things that they are not able to get away with.
Rt Hon Winston Peters Link to this
Is the Minister aware that despite claims of an honest mistake, the deputy leader of the National Party was the last Minister of Revenue when National was last in Government, and the 2005 election was the seventh election since GST was introduced; did his department take this into account when it decided not to prosecute National over $112,000 of unpaid GST; and is he confident that the public’s perception of the integrity of our tax system has not suffered as a result of this deceitful episode of one law for one group and another law for another group?
I am happy to confirm that the Goods and Services Tax Act was passed in 1985, and that Mr English was the Minister of Revenue at the time of the 1999 change of Government. I cannot comment on what negotiations may have taken place between his party and the commissioner, for the reasons that I outlined earlier on. The other point that I would make is that I do have a concern across the board about the integrity of our tax system, and for that reason I am keen to see all taxpayers meet their legitimate obligations.
Rt Hon Winston Peters Link to this
Can the Minister confirm that when the National Party came up with an arrangement to pay some money by way of a donation for a charity to Television New Zealand, that payment attracted gift duty, and has the National Party paid that gift duty yet?