The CosBullet – Tax collection needs fixing
Below is an edited excerpt from an article by Peter Strong (Nov 2014) titled “Time to sort out the scams and shams of big business tax dodgers”. Read the full article here
Australia and the international community need to fix the problem of a few big businesses and too many wealthy people who dodge their tax responsibilities. Our welfare, for sale security, health and education need everyone paying their way.
Currently we in COSBOA are receiving constant comment from our members about the tax system and the behaviour of certain very large businesses and wealthy people who are dodging their tax. It isn’t just their small business members who are concerned but it is also their customers. People who pay tax expect other people to do the same thing.
We need a national and international tax system that has integrity. In countries where there is no faith in the tax system, where most people believe that big business and wealthy people dodge tax, then the tax revenue suffers as more and more people join the tax dodgers and rort the system. As a result there is more corruption, more bribery and a closer alignment to economic anarchy than to stability.
We know that if a small business person does something to avoid tax it is viewed as illegal and is dealt with as it should be. If their local suburban accountant assists them, he or she is viewed poorly by the profession and could suffer. That is the same in any developed or developing country.
In big business it is different; there are no individuals only companies. The job of tax advisers and the big accounting firms is to find ways and means for their client to avoid tax; these means are nearly always legal but also can be dodgy. The boards of big business feel obliged to maximise profits and tax is seen as a cost not an obligation. Because many of these businesses deal in many countries the boards feel no obligation to pay tax to anyone.
The difference between big and small business is profound. A small business is a person who is in the end just a taxpayer. The Australian Tax Commissioner and other tax officers will tell you that between 92% and 95% of small business people are compliant and they pay their taxes without being forced. It is the same with the wage-earning taxpayers; nearly all of them go out of their way to get their tax right. Whether this is out of fear or out of civic duty is not relevant. The important thing is that we as a nation pay our taxes, except of course for a small number of the largest companies and wealthy people who don’t and they secrete billions of dollars away from Australia. As a result, our national budget suffers and governments have to make individual taxpayers pay for the sins of the biggest businesses.
This has to stop. See HERE for a range of comments and ideas from some of our members.
See HERE for one particular idea based on the velocity of money as it makes its way around the economy, it is an idea way out in left field but you never know it could solve the tax problem.
Regards – Peter Strong