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BAS Simplification is just the beginning says Taxation Institute of Australia

Publication date: 06 Feb 01 | Source: THE TAX INSTITUTE

"The Taxation Institute of Australia - whose 11,000 members are drawn from small rural and suburban accountants to senior members of the bar specialising in tax - first drew the Government's attention to the complexity of the BAS requirements shortly after its introduction", says TIA President, Ray Conwell.

"Our frequently repeated views were ignored until the political pressure of recent times forced the Government to admit its mistake."

"TIA members provide tax services to over 1 million clients - predominately those in small business - and their comments make it abundantly clear that BAS simplification is only the beginning," says Ray Conwell. "Unless the Government also addresses the tax compliance burden imposed by a number of other recent changes to the tax system, the political backlash is likely to continue."

Among the changes imposing substantially greater burdens on small business are:

  • The family trust election rules
  • the Ultimate Beneficiary Statement
  • unrealised loss carry forward rules
  • non-fixed trust proposals
  • the not-so-simple Simplified Tax Regime.
Each of these changes imposes substantial compliance costs on business that will far outweigh any benefit to the revenue. Even the Simplified Tax Regime for small business contains unnecessary complex rules that will make compliance a costly and time-consuming affair.

"For too long, Government has blindly followed the views of Treasury and ignored cries from tax practitioners and those who carry the real burden of these changes," says Ray Conwell. "The Taxation Institute calls on Government to listen to the users of the tax system."