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Taxation (Personal Tax Cuts and Remedial Matters) Bill 2008 (Consistent) [2008] NZBORARp 15 (9 May 2008)

Last Updated: 15 January 2019

Taxation (Personal Tax Cuts and Remedial Matters) Bill 2008

9 May 2008

Attorney-General LEGAL ADVICE

CONSISTENCY WITH THE NEW ZEALAND BILL OF RIGHTS ACT 1990: TAXATION (PERSONAL TAX CUTS AND REMEDIAL MATTERS) BILL 2008

1. We have assessed whether the Taxation (Personal Tax Cuts and Remedial Matters) Bill 2008 ("the Bill") (IRD 12876) is consistent with the New Zealand Bill of Rights Act 1990 ("Bill of Rights Act"). We understand that the Bill will be considered by the Cabinet Legislation Committee at its meeting on Thursday, 15 May 2008.
   
2. The Bill provides for personal tax cuts, phased in incrementally over three and a half years. The majority of the Bill proposes the necessary amendments to give effect to the tax cut policy and ensure the benefits of the cuts flow through the tax system appropriately.
   
3. In addition, the Bill proposes to:
   

• increase the amounts payable under the Working for Families package in line with rises in the Consumer Price Index;
  
• clarify the tax exempt status of state and state integrated schools and tertiary education institutes that are not run for private pecuniary profit, removing the requirement for them to register under the Charities Act 2005;
  
• enable the Commissioner of Inland Revenue to grant tax charity status to certain non-resident charities, and resident charities that have made efforts towards registering under the Charities Act 2005 before 1 July 2008;
  
• address 10 cross-referencing errors from previous amendments to revenue statutes to give certainty to taxpayers; and
  
• lower the tax rate for portfolio tax rate entities; exempt portfolio tax rate entities from resident withholding tax; ensure that employers do not have to include accommodation provided to employees in the base amount for calculating compulsory employer contributions; and delay the repeal of penalty provisions for Kiwisaver.
  

4. We have concluded that the Bill appears to be consistent with the rights and freedoms affirmed in the Bill of Rights Act.
   

In addition to the general disclaimer for all documents on this website, please note the following: This advice was prepared to assist the Attorney-General to determine whether a report should be made to Parliament under s 7 of the New Zealand Bill of Rights Act 1990 in relation to the Taxation (Personal Tax Cuts and Remedial Matters) Bill 2008. It should not be used or acted upon for any other purpose. The advice does no more than assess whether the Bill complies with the minimum guarantees contained in the New Zealand Bill of Rights Act. The release of this advice should not be taken to indicate that the Attorney-General agrees with all aspects of it, nor does its release constitute a general waiver of legal professional privilege in respect of this or any other matter. Whilst care has been taken to ensure that this document is an accurate reproduction of the advice provided to the Attorney-General, neither the Ministry of Justice nor the Crown Law Office accepts any liability for any errors or omissions.