Footnote:
In: Australian Tax Forum Vol 14 No 1, pp 287-324 (1998)
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments 1998 erstellt
Description:
The Australian Capital Gains Tax' ("CGT") is now well established, but cannot be taken for granted. It was introduced primarily for reasons of equity, although there were also strong efficiency arguments identified in its favour. Most commentators would accept that the criterion of simplicity was not a prime reason for its introduction. Now, external forces and internal pressures impose fresh challenges on a set of provisions that apparently continue to impose high costs of compliance on taxpayers and high administration costs on the Australian Taxation Office ("ATO"). These high operating costs combine with an ostensibly low revenue yield to present its critics with the renewed opportunity to callfor its abolition. Such calls need to be resisted in order to maintain the underlying integrity of the Australian tax system.This paper considers the rationale for its introduction in 1985, and assesses the relevance of that rationale as we move into the twenty first century. It reviews its current operation, particularly by reference to the complexity introduced by the many preferences, such as grandfathering, exemptions and roll-overs, that are contained within its provisions. Finally the paper explores proposals for reform, ranging from developments such as the current Tax Law Improvement Project rewrite through to a more ambitious agenda. This agenda outlines a platform for reform which seeks to reduce operating costs and increase certainty whilst retaining the essential equity and efficiency criteria embodied in the current regime, and to do so in a fashion that will not threaten the tax base and capacity for revenue generation