The Tax Institute has called for the Government to refocus its efforts on easing the tax compliance burden on small businesses.
The Tax Institute’s 2013-14 Federal Budget Submission urges the Government refocus its efforts on areas of the tax law that are in need of urgent and significant reform.
Taking into consideration the range of matters that affect small business, The Tax Institute has outlined ways in which the Government can help alleviate the compliance burden and improve tax policy outcomes for small businesses in Australia.
Steve Westaway, President of the Tax Institute, said this would involve, “exploring the possibility of creating a separate, ‘small business entity’ structure, streamlining definitions and access to small business concessions, and simplifying carry-forward loss integrity measures.”
A separate ‘small business entity’ structure would integrate the benefits of existing, available structures such as the company, trust, partnership and sole trader structures.
Simplifying and minimising the costs associated with carry-forward loss integrity measures such as the ‘continuity of ownership test’ and the ‘same business test’ would allow greater flexibility in capital raising and making changes in business operations.
The Tax Institute also encourages the Government to pursue a more ‘open and transparent timeline for legislative change’ so taxpayers aren’t left in limbo for much longer and can start making informed investment decisions.
