Can Simplification of Tax Laws Go With the Henry Reforms?
Should the Australian taxation laws be simplified? This type of question is akin to the question of whether we should love our mothers. I think it is obvious to most people that it needs simplification, but exactly how it is to be reformed is a subject of considerable debate. Unfortunately, tax reform is often derailed by particular political imperatives or minority views that can impact on the overall process. I have been a tax practitioner for around 25 years and I have seen many major and minor tax reforms. There have been continuing cries for tax simplicity. I have worked in some major accounting firms and been a tax partner in two of them. The general view that I had in relation to simplification whenever it was proposed was that it was a signal to gear up the recruiting program to deal with the simplification (complex!) changes to the law. Almost uniformly the “improvements” to the Australian tax system have created enormous complexity. At one time it was possible for an accounta
