18 Jul 08 Taxation Institute calls for greater clarity on penalties and focus on timing issuesIn a media release issued on 16 July 2008, the Taxation Institute of Australia called for greater clarity on penalties and focus on timing issues that could create unfunded tax liabilities based on the Carbon Pollution Reduction Scheme Green Paper released by the Government on the same day: see item (2) of this edition of TAXVINE.
The Taxation Institute commends the Government for ensuring that the design of the proposed Carbon Pollution Reduction Scheme (Scheme) will reflect the tax impact of the transactions contemplated by the Scheme. But it called for early legislative amendments to provide certainty for taxpayers.
The Taxation Institute President, Sue Williamson, said the Taxation Institute is pleased the Government has listened to its recommendations to ensure that the tax system that supports the Scheme is compliance efficient by adopting our recommended approach for the taxation of Carbon Pollution Permits and the application of a flow-through GST strategy.
“It is great to begin to see some clarity in the thought process behind the taxation implications of the Scheme at a high level" said Ms Williamson. "However, we now need to start looking at the next level of detail,” Ms Williamson said.
The Taxation Institute’s main concerns are:
- Clarity about the penalty regime
- Certain aspects of the taxation of permits, and
- Clarity about early abatement offsets.
The Taxation Institute welcomes the opportunity to make further submissions to Government on these issues.
For a copy of the media release, go here