The Board of Taxation’s role in improving the tax

system Teresa Dyson

Chair, Board of Tax

Overview Board’s function Tax design issues Current/recent tax technical reviews Ministerial Advisory Council for deregulation on taxation

matters Concluding remarks

Board’s function

To provide advice to the Treasurer on: Quality and effectiveness of tax legislation and processes

for its development, including the processes of community consultation and other aspects of tax design

Improvements to the general integrity and functioning of the taxation system

Research and other studies commissioned by the Board on topics approved or referred by the Treasurer; and

Other taxation matters referred to the Board by the Treasurer

Tax design and developmentTax design (including consultation) processes have improved, but there is room for improvement Timeliness of legislation Quality and quantity of consultation Involvement of the private sector

Collaboration between ATO, Treasury and non-government sector is important – each has roles and responsibilities in serving the national interest

Current/recent tax technical reviews

Tax impediments for small business Division 7A Thin capitalisation – arm’s length debt test Debt/equity rules

Tax impediments for small business Fast-track review Identifying key reform priorities to:

0 Reduce tax impediments facing small business0 Enable small businesses to focus more time and energy on

running and growing their businesses Mix of administrative and legislative issues Simplification and deregulation priorities

Division 7A Post-implementation review Consider application of the Division in the broader context

of taxation of private companies and distributions from private companies

Thin capitalisation – arm’s length debt test Ease of application and administration Should access to the regime be limited?

Debt/equity rules Post-implementation review Related schemes and 974-80 Interactions/non-interactions International comparison and consider impact on arbitrage

opportunities Structure of legislation

Deregulation

Ministerial Advisory Council for deregulation on taxation matters

Fast-track reviews Assistance to Treasury reviews and scoping studies

Concluding remarks High workload Different types of work, e.g. longer reviews, short reviews,

advice to Treasury, coordinate targeted consultation Aims:

That government gets high quality advice for making tax policy decisions

That tax legislative products give effect to policy intent in a way that best meets the needs of users of the tax system

Community rightly expects participation in the design of its tax system. With that comes responsibilities to seek a better system overall

© Teresa Dyson 2014

Disclaimer: The material and opinions in this paper are those of the author and not those of The Tax Institute. The Tax Institute did not review the contents of this presentation and does not have any view as to its accuracy. The material and opinions in the paper should not be used or treated as professional advice and readers should rely on their own enquiries in making any decisions concerning their own interests.