EY calls for focus on tax policy process to address ongoing disarray

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Monday 30th March 2015 - The release of the Government’s Tax Discussion Paper provides a significant opportunity to address the ongoing problems with the tax policy process in Australia, EY said today.

The consultation process associated with the paper will allow the public to get involved in the development of long-term solutions to urgent problems.

Alf Capito, EY Tax Policy Leader, said the focus needs to be on improving the way we produce tax law.

“Australia needs to develop institutional frameworks that enable a better tax policy making system.

“The need for change is readily apparent to anyone who has had to deal with the complexity and uncertainty that have become the hallmarks of Australia’s tax system. The challenges are clearly identified in the discussion paper.

“The current system is inflexible, impractical, fails to support our international competitiveness and out of step with our revenue needs,” Mr Capito said.

EY released Tax reform: A better way in 2014 highlighting the need to depoliticise tax reform in a way that recognises both the acute and long-term need for effective process.

The report recommended an independent Australian Tax Reform Commission to oversee tax reform matters and take on the responsibilities currently performed by the Board of Taxation and some functions of the Australian Treasury.

“Since we called for a Tax Reform Commission we have received support for this idea from a number of interested parties.

“By putting the right processes and institutions in place we can build a tax system that is fair, encourages productivity and meets the revenue requirements of the nation,” Mr Capito said.

EY will be an active participant in the consultation process and encourages all with an interest in an efficient tax system to get involved.

“This is an opportunity for the public to contribute to the shape of the future tax system. It is important that there is a robust debate process and that all stakeholders get a chance to be heard.

“We look forward to participating,” Mr Capito said.

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