Tax transparency paper requires caution

Taxpayers Australia urges taxpayers to exercise caution while analysing the recently published tax details of 321 Australian private companies. Tax transparency paper requires caution

The publication of the so-called tax transparency figures to the general public is purportedly to aid public debate about tax policy.

“Data supplied by the ATO reveals that this information is really of limited use. It provides an idea of how much companies have earned and how much tax companies have paid in a particular period but little else,” said Moti Kshirsagar, the chief executive officer of Taxpayers Australia.

“How is this information useful for tax policy debates? On the contrary, if misinterpreted, this inadequate information could create a false perception of tax avoidance behaviour by companies that are doing the right thing and playing by the rules,” he said.

“It would be almost impossible for even skilled analysts to extract anything more meaningful from the data. Taxes paid by any taxpayer – private or public – are ultimately the result of a series of past transactions and may incorporate complex transactions including abnormal and one-off items such as losses, deductions and other elements.”

ENDS

Note to editors: If you’d like more information about this topic or to schedule an interview with Taxpayers Australia’s Business Services Manager, Lisa Greig, please call her on (03) 8851 4505 or Roseann Tanner on (03) 8851 4504 or email rtanner@taxpayer.com.au.

Taxpayers Australia is a not-for-profit organisation committed to a fairer and more transparent taxation system for every Australian taxpayer. Its aim is to provide taxation practitioners, superannuation professionals, small businesses and individuals with up-to-date, informative and above all understandable information about taxation – to ensure that every Australian pays the right amount of tax and not a cent more.

Taxpayers Australia is a not-for-profit organisation committed to a fairer and more transparent taxation system for every Australian taxpayer. Its aim is to provide taxation practitioners, superannuation professionals, small businesses and individuals with up-to-date, informative and above all understandable information about taxation – to ensure that every Australian pays the right amount of tax and not a cent more.

Taxpayers Australia is a not-for-profit organisation committed to a fairer and more transparent taxation system for every Australian taxpayer. Its aim is to provide taxation practitioners, superannuation professionals, small businesses and individuals with up-to-date, informative and above all understandable information about taxation – to ensure that every Australian pays the right amount of tax and not a cent more.

Taxpayers Australia is a not-for-profit organisation committed to a fairer and more transparent taxation system for every Australian taxpayer. Its aim is to provide taxation practitioners, superannuation professionals, small businesses and individuals with up-to-date, informative and above all understandable information about taxation – to ensure that every Australian pays the right amount of tax and not a cent more.

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