from SMH
November 27, 2006
SMALL business in Australia is being hindered by a tax system that ranks well behind those of Ireland, Britain and New Zealand for its ease and efficiency, a report by the World Bank and PricewaterhouseCoopers says.
A simpler tax system is the key to tax reform, increased government revenue, vibrant businesses and foreign investment, the report argues.
The report, Paying Taxes – The global picture, ranks 175 countries according to the number of tax payments, the compliance time and tax rates. Ireland is second, after the Maldives, with New Zealand 10th and Britain 12th. Australia comes in at 35 and the US at 63.
The report’s author, Caralee McLiesh, said that when governments considered tax reform they often placed too much emphasis on corporate income taxes.
“There is a hidden burden both in terms of other taxes that are paid, but there is also a hidden burden in the time it takes to comply and the complexity of the system,” she said.
The report says Australia has the third highest federal tax administration burden out of the top 20 countries, as measured by their gross domestic product.
Although Australia had been ranked second easiest for starting up a small business in an earlier World Bank report, Ms McLiesh said the country’s tax system made it more difficult to maintain a business.
November 27, 2006
SMALL business in Australia is being hindered by a tax system that ranks well behind those of Ireland, Britain and New Zealand for its ease and efficiency, a report by the World Bank and PricewaterhouseCoopers says.
A simpler tax system is the key to tax reform, increased government revenue, vibrant businesses and foreign investment, the report argues.
The report, Paying Taxes – The global picture, ranks 175 countries according to the number of tax payments, the compliance time and tax rates. Ireland is second, after the Maldives, with New Zealand 10th and Britain 12th. Australia comes in at 35 and the US at 63.
The report’s author, Caralee McLiesh, said that when governments considered tax reform they often placed too much emphasis on corporate income taxes.
“There is a hidden burden both in terms of other taxes that are paid, but there is also a hidden burden in the time it takes to comply and the complexity of the system,” she said.
The report says Australia has the third highest federal tax administration burden out of the top 20 countries, as measured by their gross domestic product.
Although Australia had been ranked second easiest for starting up a small business in an earlier World Bank report, Ms McLiesh said the country’s tax system made it more difficult to maintain a business.
from Heather Smith ~ MYOB Certified Consultant