26 Nov 10 Preamble - Friday 26 November 2010This week we saw the Government release two important reports by the Inspector-General of Taxation.
The review of the Private Binding Rulings system contains six recommendations that go to the fundamental issue of taxpayer certainty. The Taxation Institute broadly welcomes the Tax Office’s responses to the report. However, we are disappointed with the Tax Office’s rejection of the specific recommendations to introduce a process of grouping standardised rulings and a better search engine. This would promote transparency and allow taxpayers to more clearly see the issues that are most frequently ruled upon.
The second review was into the Superannuation Guarantee Charge. There is still a widespread lack of understanding of the Super Guarantee system by both employers and employees; this is despite its important impact on future retirement incomes. The Inspector-General’s review and the Tax Office and Government responses are a positive step towards improving the understanding and enforcement of the laws.
Please see below for further information about the Inspector-General reviews and also for details of other activities this week.
Robert Jeremenko FTIA