Published on 01 Feb 07
by "THE TAX SPECIALIST" JOURNAL ARTICLE
The Simplified Tax System (STS), sometimes described as a “system within a system”, was introduced in 2001 as part of a package of measures to assist small business that was recommended by the Ralph Committee’s Review of Business Taxation. The STS was designed to address calls from small businesses for recognition of the additional and regressive compliance burden that they faced, and for a simpler and more certain system to be introduced. It was to be an alternative method of determining taxable income available for eligible small businesses that had straightforward financial affairs.
Since its introduction the STS has been amended a number of times. The purpose of this paper is to present a critical analysis of the operation and impact of the STS from inception to date. The paper addresses three key questions, namely, whether the STS is simple, whether it is now simpler than before, and how it may be made simpler.
Margaret is a Professor Australian School of Business, School of Taxation and Business Law, The University of New South Wales.
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01 May 2014