29 Apr 1111 The Tax Institute in the media
The Tax Institute was mentioned on Tuesday 26 April 2011 and Wednesday 27 April 2011 in The Advertiser: "Call to avoid tax law turn", Adelaide Now, The Age: "Tax avoidance cases focused on hypotheticals", Reuters, Sydney Morning Herald, WA Today and Brisbane Times: "'Misreading' led to tax law complexity" in relation to Justice Tony Pagone QC speaking at The Tax Institute's SA Convention on the interpretation of Part IVA.
The Tax Institute was extensively quoted in The Australian on Thursday 28 April 2011, in relation to rumoured trust tax changes: "Clamp on trusts would hit key MPs". In the article, we say that we are surprised by speculation of a crackdown, given the strength of the Government's recent statements in support of family trusts. We also said that it was not just the wealthy who would be hit by the rumoured Budget changes - it's your mum-and-dad corner store owners and fish-and-chip shop owners who often use trust structures for legitimate purposes.
The Tax Institute was also quoted in SmartCompany on Thursday 28 April 2011: "Wayne Swan zeroes in on family trusts but experts expect only tinkering in Federal Budget". In the article, The Tax Institute says that radical reform is unlikely, because there are already plenty of changes going on in the area, and trusts have had a lot of uncertainty over the past 20 years. The message from the Government is trusts are legitimate vehicles, particularly for primary producers. On the same issue, the Australian Financial Review quoted The Tax Institute on Thursday 28 May 2011: "Swan warned of risks in targeting trusts". In the article, we say that the strident opposition from the Nationals and small business people to Shadow Treasurer Joe Hockey's suggestion that trusts should be taxed as companies was a bit of a lesson for Governments that dabble in trust tax law.
On Friday 29 April 2011 The Tax Institute was extensively quoted in the Australian Financial Review (pages 8-9) with regard to excess super contributions tax: "Hefty penalties may be relaxed for honest gaffes". The article quotes the Assistant Treasurer's speech to The Tax Institute's National Convention in March, where he said that he had to pay excess super contributions tax, so he's more than sympathetic, he's annoyed. The Tax Institute says in the article, that although the Tax Commissioner has a discretion to waive the tax penalties, he has used the discretion in very rare circumstances. The quotes continue: "The Tax Institute is hopeful that the Government is heeding our long-standing concern about the inequity of a 93 per cent tax impost. It should introduce some level of flexibility to allow taxpayers who inadvertently exceed the caps to withdraw the money to prevent this excess impost. A simple oversight should not incur a tax rate of 93 per cent, possibly one of the highest tax rates on super in the world."