SME compliance too taxing

24 February 2010

Small businesses should be compensated for the time they spend being unpaid tax collectors, according to a Federal Government submission by the National Institute of Accountants (NIA)

As reported in online business title dynamicbusiness.com, rises in the complexity of tax laws have meant compliance has become increasingly difficult, with the financial impact on small business disproportionate to their ability to cope.

"With constant changes to fringe benefit tax, capital gains tax, goods and services tax, income tax and compulsory superannuation, our taxation system has become too onerous for most taxpayers, requiring the need to engage a professional tax advisor," Andrew Conway, NIA CEO said.

"Access to quality tax advice is critical to the integrity of the tax system. In fact, the percentage of businesses that engage a tax practitioner to lodge their tax return now exceeds 95 per cent."

"While it is important for small businesses to continue to use tax professionals in this environment of increasing complexity, the Government should compensate small business in the form of a non-refundable tax offset when they engage a registered tax professional to undertake certain work on behalf of the ATO," he said.

This proposal forms part of the NIA's pre-budget submission to the federal government which provides measures that could assist Australia's small businesses. The full submission can be found on the NIA website at www.nia.com.au.

Comments

leeanne

I for one would like to be compensated for all the time and effort that is put into doing my taxes

KG ON MAROONDAH

I AM UNABLE TO COPE WITH BOOKWORK WITHOUT THE ASSISTANCE OF MY ACCOUNTANT. I WOULD BE EXTREMELY GLAD TO SEE COMPENSATION AVAILABLE TO ME BY WAY OF A TAX OFF-SET . LIKE MOST SMALL BUSINESSES TODAY.......I STRUGGLE.

T Biggs

I loathe BAS time, I do feel like an unpaid tax collector, and it actually costs me money to pay my taxes, as well as the time after hours that I need to spend to do all the paperwork - the government does not pay me for this time. We should be able to bill the government for the hours we work collecting money for them.

donna

I would love to be compensated for the time & energy put into having everything up to ATO standard. It can't be done without an accountant, the goal posts get changed so often and the penalties are scary if you make a mistake.

donna 2

Well said everyone The goverment has no idea the time and money we all spend on making sure its right so we dont get fined and its time spent doing their bookwork for their taxes that would be better spent in our self employed small businesses 7days a week 24hrs a day jobs .Maybe if we didnt have to do all their work we could get a break .

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