Miscellaneous 2006

Will different methods of budgeting and accounting for tax incentives improve simplicity?

Source: Australian Tax Forum Journal Article

Published Date: 1 Sep 2006

 
Most tax lawyers are not very fond of tax incentives. When talking about simplifying taxes, an initial approach might be to abolish tax incentives. However, in some cases this abolishment may cause the loss of a useful and effective instrument for government policy. A good example of a policy field that can benefit from certain tax incentives is cultural policy.

The advantages that some tax incentives offer do not mean that no tax incentives should be abolished. It is important that all tax incentives are evaluated on a regular basis to check whether they are (still) in line with policy goals and whether they are (still) the most efficient and most effective way of achieving these goals. Currently this is not always the case. To solve this problem the article proposes a change to the way in which tax incentives are budgeted and accounted for, which should give an incentive to evaluate tax incentives in a similar way as that in which direct subsidies are evaluated. The side effect of this change could be the abolishment of certain tax incentives and the simplification of tax laws.
Author Profile
Sigrid J C Hemels

Sorry, this is subscriber only content.

To gain access to this material and much more - Subscribe Now.

(Note: Members can access Taxation in Australia journal articles without a Tax Knowledge Exchange subscription - please log in to access).

Already a Subscriber? Login now

Already a Subscriber? Login now

Details

The material is copyright. Apart any fair dealing for the purpose of private study, research criticism or review, as permitted under the copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.

Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.

The Tax Institute
(ABN 45 008 392 372 (PRV14016))

("TTI")

The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009. 

Copyright Statement

All materials provided on this site are protected by copyright and are owned by or licensed to TTI.

Except as expressly permitted by TTI or the copyright owner, any person or company who uses this site must not use, reproduce, redistribute, retransmit, publish or otherwise transfer, or commercially exploit, the materials or any information, software or other content, in whole or in part, which is available through this site.

Tags

Miscellaneous 2006

Share this page