Published on 01 Jan 95
by Australian Tax Research Foundation
This study examines the current Australian company tax imputation system and business income taxation. Various for potential improvement are considered which are consistent with the taxation principles underlying imputation and which are conducive to a more equitable inefficient tax system.
The underlying deficiencies of the current system are highlighted as its failure to follow through the principal of imputation further towards integration of company and personal income taxation. The study argues that short of full integration, it is possible to make considerable improvement to the system ofcompany tax so that companies and their shareholders are not disadvantaged as against partnerships, trusts and other non-corporate conduits for business income. In regard to measuring business income as opposed to its tracing to its ultimate beneficial recipients, the study suggests a need to recognise that a range of costs which are presently non-deductible or which are written off too slowly should be made deductible or written off more quickly.
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