NCJ Number
177670
Date Published
1993
Length
8 pages
Annotation
This analysis of tax laws, tax avoidance, and tax evasion in Australia concludes that the simplification of the tax laws would result in a more efficient and equitable revenue collection system.
Abstract
The taxation rules in Australia have become so complicated that many people turn to expert advise due to their inability to understand the extent of their tax obligations and entitlements, despite the best efforts of the Australian Taxation Office to explain the system. Legitimate and sometimes questionable schemes and practices are therefore used to reduce tax payments. Tax reforms over the last decade and tax law enforcement efforts appear often to place unreasonable expectations on ordinary citizens. The structure of the tax system is of crucial importance in reducing both the extent and the opportunities for tax avoidance and tax evasion. However, uncertainty, complexity, and confusion promote tax avoidance and evasion. Therefore, a concerted effort at simplification of the tax laws may reduce some of the opportunities to cheat and the need to develop more sophisticated and intrusive surveillance and compliance approaches. Figure, table, and 16 references