Fed: Annual tax return chore may be scrapped

AAP General News (Australia)
04-17-2006
Fed: Annual tax return chore may be scrapped

MELBOURNE, April 17 AAP - The annual chore of doing tax returns could be a thing of
the past under a plan being considered by the tax watchdog.

The Inspector-General of Taxation had been speaking to the Organisation for Economic
Co-operation and Development about tax returns in which information about income and deductions
are filled in by tax administrators, Fairfax newspapers reported today.

David Vos said the problem of people not lodging tax returns was "significant".

"We will be reviewing the non-lodgement of returns in Australia and whether it's caused
by taxpayer lethargy or lack of resources among tax agents," Mr Vos told Fairfax.

Australia's tax system is thought to be too complex, with too many deductions, loopholes
and concessions.

Taxpayers in New Zealand and Britain with simple affairs do not have to lodge returns.

One option being examined by Mr Vos is shifting responsibility for filling in returns
back to the Australian Taxation Office.

Under the scheme, the tax office would need comprehensive access to information on
wages, bonuses, severance payments, employee fringe benefits, interest, dividends, assets,
rental income and expenses and even spending on union fees and child care.

At the end of the financial year, taxpayers would be sent their tax return, with the
option of correcting any mistakes and adding overlooked income or deductions.

Mr Vos said in some countries with such systems, up to 88 per cent of lodgements were
processed by tax administrators without any need for changes.

AAP lb/rs

KEYWORD: TAX RETURNS

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