The Government has asked the Board of Taxation to conduct review to identify features in the tax system that are hindering or preventing small businesses from reaching their commercial goals.
In making the announcement on Fri 28.3.2014, the Government said it was “fully committed” to the Tax White Paper process and that the Board’s “review will complement the process with a dedicated focus on the small business sector to drive innovation and jobs growth”.
The Government said the Board will draw on its extensive links with small business and the expertise of its Advisory Panel in developing its report to the Government before 31 August 2014. (Source: Minister for Small Business, Acting Assistant Treasurer, Parliamentary Secretary to the Treasurer’s joint media release, 28 March 2014.)
“Fast-track review” welcomed – The Government’s announcement to “fast-track” the review into tax impediments for small businesses has been welcomed by tax professionals. The Tax Institute’s President, Michael Flynn, said there is significant work to be done in respect of simplifying existing tax laws to alleviate the compliance burden on small business, including: streamlining access to small business concessions; simplifying carry-forward loss integrity measures; and identifying areas in which ATO processes and interactions with small business can be simplified. He said the Tax Institute also looked forward to exploring with the Board the possibility of creating a separate “small business entity” structure through which small business can operate, amalgamating the benefits of existing structures: the company, trust, partnership and sole trader. (Source: TIA media release, 28 March 2014.)
[LTN 60, 28/3/14]