From the Desk of the Executive Director

The Morrison government is setting up a much-wanted small business tax tribunal, but even before it starts we see efforts to white-ant its operation.

Just how much small business needs an independent tax tribunal was revealed in court by Michael Cranston, the former top Australian Taxation Office official. He was recently found innocent of using his high office to benefit his son, who is facing separate charges of alleged tax corruption.

Cranston’s testimony about the ATO’s internal culture was devastating. He stated under oath that tax audits are so often wrong that his job was to try to protect high-wealth individuals from flawed ATO audits. He described an ATO culture of “aggressiveness” against taxpayers. More...

Australia’s tax-collection system relies on the honesty of millions of Australians who pay their tax voluntar­ily and without fuss.

That happy co-operation is under threat because of the behavio­ur of the Australian Taxation Office.

Each year individuals and businesses remit about $390 billion in taxes. Meanwhile, the ATO chase­s just $20bn a year in tax it claims people owe. More...

How would you feel if — after years of filling out your tax return in strict accordance with the Australian Taxation Office’s written rules and having your tax returns accepted by the ATO — you discovered that the ATO was accusing you of fraud?

Further, that the basis of the fraud accusation was that you were complying with ATO written rules. Confused? Go figure!

But this is the scenario confronting small business people today in their dealings with the ATO. More...

Dear Prime Minister,

It’s fantastic that that you’re excited about ‘being alive’ and that you’re encouraging Australian’s to get out and ‘do things’. Yep, it’s people power that makes our society and economy vibrant and strong. If anything, you’re asking us to be entrepreneurs!

But I want to put my piece of caution to you as you drive us down the innovation road. More...

This is a highly political budget, as are all budgets. But this time it’s political in a different way.

The Labor Party brand themselves with their century-long moral mantra of the ‘working man’. Liberals historically have allowed their branding to be defined by the negative ‘bosses party’ image. This budget breaks that mould. For the Coalition it’s a brand re-positioning budget.

It’s definitely not a big bosses’ budget. The government claims it’s “the biggest small business initiative in our nation’s history”. It’s a claim probably justified on the detail of the package. More...

The scariest thing about being a small businessperson in Australia is not the ‘normal’ commercial risks of business but rather that you’ll be targeted by the Australian Taxation Office. This is the conclusion that can be drawn from two official reviews of how the ATO deals with small businesspeople.

The first report is the Board of Taxation’s Review of Tax Impediments Facing Small Business released in February. (You can read my summary and comments here.) The second comes from the Inspector-General of Taxation into The Management of Tax Disputes released this month. (Again, you can read my summary and comments on this report here.) More...

It was only the middle of last year that Ford announced it was closing. Now Holden is making the same threat, not directly but through what it seems is its chief lobbyist, the South Australian Labor government. This time, Holden is saying it wants another $275 million from government or it closes. More...

The Rudd Labor government is spending big on media advertising declaring that it's small-business-friendly. But the facts show a government intentionally damaging small-business people.

In the past two years, for example, the number of micro-businesses (one-person businesses) has collapsed by 130,000. This is a direct result of a package of anti-small business, anti-self-employed measures imposed by the Labor government. More...

The Australian union movement has been quite open about its campaign to stamp out independent contractors wherever it can. Running parallel to this, it's instructive to see that the Australian Taxation Office has shifted to a decidedly anti-independent contractor stance over the last few years.  The outcome (intentional or not) is to aid the unions' objectives. More...

As Europe descends further into becoming a dangerous drag on the global economy, you'd think that there'd be an alertness to measures to drive new growth. But no, even Great Britain is caught in a time warp doing much to suppress innovation and entrepreneurship. Tax is at the forefront of the UK institutional failure. More...