Hon Lockwood Smith MP
National Party Revenue Spokesman
Craig Foss MP
National Party Associate Finance Spokesman
28 September 2006

Nats call for re-opening of submissions on tax bill

National agrees that submissions to the Government’s tax bill should be re-opened following the announcement of a major rethink in the way overseas share investments are taxed.

National Revenue spokesman Lockwood Smith says the public should have the chance to resubmit on the bill before the Finance and Expenditure Select Committee following the joint press statement from Michael Cullen and Peter Dunne released on 15 September.

“There were nearly 4,000 submissions on the original tax bill, which proposed a capital gains tax on unrealised gains from overseas share investments,” says Dr Smith.

“Those submissions are still being heard, but against a background of major changes in the treatment of overseas share investments being floated by Dr Cullen and Mr Dunne.

“As one submitter has told the committee: ‘we cannot have legislation by media release’.

“Most of the nearly 4,000 submissions opposed the original capital gains tax plan. Submitters must now be given the chance to have their voices heard on the new proposals. However, the committee has yet to see a supplementary order paper or any other detail of the new proposal,” says Dr Smith.

Committee member and National Associate Finance spokesman Craig Foss says National will be writing to the Select Committee chairman asking that submissions be re-opened.

“We have suspicions that the new proposal is a capital gains tax in disguise. The committee and the public deserve to know the details of what’s being mooted,” says Mr Foss.

ENDS

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