Cash economy defies Australia’s ‘unfair’ tax system 9:57am 20.06.08

An international survey by the Association of Chartered Certified Accountants (ACCA) reveals Australia as the most complex in six developed countries and ranks second lowest in ‘fairness’, just as the ATO crackdown on the cash economy, using benchmarking, begins.

Chas Roy-Chowdhury, the ACCA’s global head of taxation, says there is a strong correlation between the higher level of tax as a proportion of Gross Domestic Product (GDP), a perception of unfairness and tax evasion. Members saw Hong Kong as the ideal model.
 
“[Hong Kong] is seen as the antithesis of Australia and considered to be less complex with greater clarity between what's tax evasion and avoidance. There is a much greater buy-in. ACCA's research found that tax evasion can often be linked to a nation's tax system having too many directives, laws and regulations,” said Roy-Chowdhury.
 
CEO of Taxpayers Australia Tony Greco says much of the tax burden falls to SMEs. “There are disproportionate costs to small business; SMEs are the book keepers for the ATO and are forced to undertake that role.”