LAQC changes show amazing arrogance and sloppiness: Labour

Labour supported the Taxation (GST and Remedial Matters) Bill through its first and second reading but has now withdrawn its support, Nash said.

"The LAQC changes have been introduced through the 70-page Supplementary Order Paper (SOP) which was only tabled by Peter Dunne on Wednesday [December 8]. SOPs are normally used to make very minor amendments and improvements, not generally to introduce substantial new legislation like this one."

"It contains a number of changes to tax legislation that impact upon a lot of people and it is simply not right that Peter Dunne can arrogantly introduce it without any consultation. It is outrageous," Nash said.

He said the changes were of particular significance to those with rental properties.

"There are more than 130,000 LAQCs and at least half of all rental properties are held in an LAQC entity. All New Zealanders from tax experts through to rental property owners deserve the right to be heard on such important legislation, but Peter Dunne's unacceptable arrogance is denying them."

Nash said the changes apply to more than $2.25 billion per annum of tax losses through LAQCs and impact on major issues such as the fairness of tax treatment of different asset classes.

"National had the chance to pass this Bill by consensus - but they blew it. The substance is hugely significant and the process is appalling."

Comments from our readers

On 17 January 2011 at 7:35 pm Graeme said:

Absolutely correct
I've voted Natyional all my life except once, and Im 61 years old.
I feel abused - somebody changed the rules on me but won't change the rules associated with travel perks for retired MPs.
They have just lost my vote - if I can't find somebody else to vote for I simply won't vote, and a lot of others I talk to are thinking the same way.
I like Key, but Dunne is a mistake prone disaster and I can't support a part that supports him..

On 1 February 2011 at 10:56 am Lorraine van Leeuwen Thompson said:

I support this argument. National are making it impossible for most of us, they have changed the rules and make it seem that the owners of rental properties are 'abusing' the system. There is risk in what they are doing as well as providing housing.
What next !

LAQC changes show amazing arrogance and sloppiness: Labour

Government changes to tax legislation replacing the Loss Attributing Qualifying Company (LAQC) regime amounts to “a complete abuse of process and amazing arrogance and sloppiness,” claimed Labour Revenue spokesman Stuart Nash.

Tuesday, December 21st 2010, 12:00AM 2 Comments

Comments from our readers

Commenting is closed

www.GoodReturns.co.nz