But the owners and employees of the business have to pay tax on their earnings from the business. Profits can remain in the business untaxed so that the business can grow. At the moment taxation is an impediment to growth. This is stupid. Worse, it is a dis-incentive to start a business, knowing in a advance that the government is actively working against your success.
The money comes back to the country through taxes on salaries and dividends, even dividends paid overseas.
The country would also benefit enormously from dropping all the taxes on businesses. No tax accounting costs, no complex schemes to avoid company tax and no ATO involvement in company taxation. All these costs will fall back on the individuals. And some of the ATO resources can be used to ensuring that the TP provisions etc. are tightened even further.
