Small Business Tax Compliance Cost Study

The Federal Government has asked the Board of Taxation to undertake a scoping study of tax compliance costs facing the small business sector, and provide a final report to the Treasurer during the second half of 2006. The Treasurer's Press Release announcing the Board's scoping study is available from www.treasurer.gov.au.

The study is to concentrate on the sources of small business concerns. The findings will help with the Government’s ongoing efforts to reduce excessive tax compliance costs facing business, particularly the small business sector. The Board is currently considering how it will undertake the scoping study, including the processes for consultation with relevant organisations.

ADAVB members wishing to highlight key issues for attention in ADA representations to the study should send their concerns and arguments to the author at garry.pearson.ceo@adavb.org

The Board's report will take into account:

• the purpose and object of the law;
• the relationship between taxpayer compliance costs and government administration costs;
• costs incurred by business for non-tax reasons and any additional costs incurred by businesses or their advisors for tax reasons (tax compliance costs);
• transitional costs and ongoing tax compliance costs;
• taxpayer circumstances and commercial practices;
• other legislation; and
• any other matters the Board considers materially impact on small business tax compliance costs.