We need higher tax revenue and not Government spending
cutbacks to fix the economy and eventually bring back the
budget into surplus.
But before adjusting the tax rates the Government should empower the ATO
to collect tax as the rates stand now.
Legislation is needed to:
(a) Stop the multinationals from "Transfer Pricing" scams
(b) Stop our big companies from dealing with tax havens
(In 2009 the ATO reported that 68 out of our top 100
companies had truck with tax havens and/or anonymous
bank accounts abroad)
(c) Repeal the 1.5% corporate tax cut due on 1st July 2015.
(d) Abolish family trusts tax havens
(e) Prevent doctors, solicitors and accountants from
capping their personal tax rate at the 30% corporate
rate (deem the income of professionals who use
the PTY company tax shelter at an personal income
which Government pays that professional band.
(f) Offer Multinationals a 6 months amnesty to
admit and repay tax avoided by transfer pricing;
otherwise pass legislation to enable the ATO
to fine them up to 100% of the evaded tax.
This would clear the decks in applying tax legislation as intended
and should yield at least $10 billion a year revenue fot Treasury.
Unlike cutting back welfare by $10 billion a year, this would clamp
down of what effectively amounts to corporate, foreign investment
and middle class welfare which has a much lower money velocity
than cutting back on welfare.
MM
