The Board of Taxation is a non-statutory advisory body charged with contributing a business and broader community perspective to improving the design of taxation laws and their operation.
Ideas for better tax regulation
Making it easier to pay taxes
My idea is for a tax system that makes it easier for sole traders and small businesses to pay their taxes as they go without the worry of larger quarterly instalment bills and or large tax return bills. What I would like to see is a simple tax bracket system based on earnings as you go rather than predicting your future earnings which may not be accurate. For example for every invoice payment from a client received from a business a simple percentage system put on that invoice which can pay directly to your own ATO account for that one financial year, this is then accurately calculated at the end of the financial year with your tax return and no doubt less of a debt resulting with the credit in your tax account. This keeps paying taxes simple and allows the user to pay their taxes when they have been paid and have the money to do so. There is currently a problem with small businesses (like myself) who struggle financially with low earnings experiencing high end of year tax bills which have resulted in a system that inaccurately predicts earnings of the future and bases tax of this. In my opinion tax should be paid on what you earn as you earn it under a tax bracket and to help this a simple system to be in place for a "Pay per invoice" to be sure a percentage of what is earned is going to tax allowing credit to an account for the end of the financial year. This would reduce the problem of tax debts in Australia which is no doubt costing Australian tax payers money. This also helps to keep the system less complicated, pay as you earn and easy to use would reduce the problem of tax debt considerably.
cryptocurrency registry or autofill function
Many inexperienced investors have plunged headlong into crypto investments, in many instances with little or no record keeping nor in some cases any knowledge of the tax treatment of their investments. It would be of great assistance to taxpayers to be able to maintain a registry of their crypto investments online, with the ATO, which could potentially calculate current liabilities. Similarly, akin to the existing autofill functionality, if the ATO were able to build interfaces to extract transaction records from major crypto exchanges or crypto wallets, this would also help. Some commercial providers (e.g., https://cointracking.info ) already provide similar services, integrating through major crypto exchange API layers. Making compliance simple will both encourage it and increase total tax receipts for the ATO.
Allow TFNs to be transferred in a demerger
Under current arrangements shareholders of listed companies are asked to provide their TFN to the investee company. If shareholders do not provide their TFN, the company must withhold tax at the highest marginal rate on any non-fully franked dividends paid to these shareholders. In a demerger situation, the demerging company is not permitted to transfer the TFN of a shareholder that will also have or has a shareholding in the resulting spin-off company. As a consequence, the spin-off company must ask each shareholder to provide their TFN. The Board notes that a streamlining of the process of obtaining TFNs from shareholders of a spin-off company following a demerger could reduce compliance costs for demerger companies and their shareholders. Does the community think that in respect of demergers it is appropriate for the demerging company to transfer the TFNs of shareholders having an interest in the spin-off company? If not, why not?
Meetings & events
- 15 Feb 2018 - Melbourne
- 22 Mar 2018 - Sydney
- 19 Apr 2018 - Brisbane
Complete our survey to have your say on fringe benefits tax compliance costs! The Board of Taxation needs your help… twitter.com/i/web/status/1…11 6
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