Cullen Challenged To Come Clean On Tax- ACT

Thursday 27th Jan 2000

Rodney Hide Media Release -- Economy

ACT Finance spokesman Rodney Hide today challenged Minister of Revenue Michael Cullen to come clean over his proposed tax avoidance measures.

"The fact is that Dr Cullen has no anti-avoidance measures up his sleeve. He's using scare tactics in a vain attempt to overcome the failures in his tax hike legislation that were pointed out to him by tax professionals, the IRD and opposition MPs last year.

"Dr Cullen has thrown a spanner into financial planning by saying he will be introducing anti-avoidance measures this year without spelling out what they are. No one now knows what the rules are. It makes it very hard to plan for the year when the government won't spell out the rules.

"Dr Cullen has in a month now broken two major rules that make for sound tax policy. He has put an extra tax step in that drives people into financial arrangements that reduce their tax liability. And now he's introduced great uncertainty by saying there will be unspecified rule changes to overcome the complication he introduced in the first place.

"I challenge Dr Cullen to put some certainty back into financial planning by spelling out what he has planned. I don't believe he will because he can't. Dr Cullen is now the Minister of Bluster", said Rodney Hide.

ENDS

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