Friday, June 17, 2011

New Tax Inquiry: self assessment

The Inspector General of Taxation will examine whether to turn back the tide on Australia’s system of self-assessment for income tax, in place since 1987.

Inspector General Ali Noroozi said self assessment shifted costs from the Tax Office to taxpayers when it was introduced but may now also be saddling them with disproportionate risks.

“Taxpayers now operate in an environment of ever increasing tax complexity,” he said. “Although self-assessment itself has benefits, my consultations suggest there may be issues with the current systems and their operation that imposed increased costs and uncertainty.”

When self-assessment was last examined in 2003 the Tax Office undertook to provide greater certainty in rulings and to limit the period in which it could amend earlier assessments.

Mr Norrozi will examine how successful those changes have been. He is seeking submissions by July 21...

Published in today's Age

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