Expert warns tax changes could trigger unintended consequences for businesses
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Australia’s proposed tax changes are facing criticism from tax professionals who say the government moved ahead without enough consultation.
Speaking at the Tax Summit in Sydney, tax lawyer and former EY director Tracey Dunn warned that the reforms were overly complex and could lead to more disputes between taxpayers and the Australian Taxation Office.
She said the proposed capital gains tax changes were difficult to interpret, even for experienced practitioners. This could leave ordinary taxpayers struggling to comply and increase the risk of costly legal action.
Dunn also criticised the government’s decision to introduce and pass legislation before the public consultation period had ended. She warned that releasing the reforms in separate stages had added to confusion among tax advisers.
She suggested the government’s reluctance to consult major professional firms may be linked to the PwC confidentiality scandal, in which a former partner leaked confidential Treasury tax plans to clients.
Dunn said the fallout from that case should not undermine the broader role of experienced tax professionals, who help ensure laws are practical, fair and easier to follow.
She also warned that proposed trust-related changes could create future legal disputes involving trustees, beneficiaries and trust restructures.
Treasury rejected the criticism, saying it had carried out extensive consultation with industry groups, accounting bodies, law firms and other stakeholders.
The department said four consultation packages had been released covering trust taxation, capital gains tax and negative gearing reforms, and tax treatment for innovative start-ups.
The debate highlights concerns that poorly drafted or rushed tax laws could increase compliance costs, create uncertainty and weaken public confidence in Australia’s tax system.
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Source : News.com
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