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ACT Will Press For Submissions On GST Tax Grab

Tuesday 15th May 2001

ACT Finance spokesman Rodney Hide said today that he will be pushing for the Finance and Expenditure Select Committee to call for submissions on the Government’s last-minute call to make GST payments retrospective.

“This is a ‘grab for cash’ that has the potential to bankrupt educational institutes and tourist operators, because the government has now decided that they are liable for GST all the way back to 1986 that previously they didn’t have to pay. They were complying with the law. Now the Government is changing the law and doing so retrospectively.

“The Government is not only demanding that taxpayers retrospectively pay tax but it is also denying these very taxpayers the right to be heard on this major breach of trust. Taxpayers have every right to be appalled by the Government’s handling of this issue. Submissions on the Taxation (Annual Rates, Taxpayer Assessment and Miscellaneous Provisions) Bill closed last Friday and then on Monday Finance Minister Michael Cullen announced these major retrospective tax changes - denying taxpayers even the right to be heard.

“The Bill is not due to be reported back to the House until October which gives ample time to call for fresh submissions on Dr Cullen’s changes. I will be pressing the Select Committee to call again for submissions and give taxpayers the right, not only to be not taxed retrospectively but also to be able to have that say about major changes to the tax laws that affect them,” Rodney Hide said.

ENDS


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