Why is our tax system so complex? What good does it serve our country to have such a complex system? It has become virtually impossible for anyone to make a business, finance, or investment decision in Australia without first consulting an accountant and/or a solicitor and/or a financial planner. These professional advisors are often the first to be consulted when such a decision is to be made, rather than only being consulted as a last resort (if at all) for an assurance or an opinion. Often these advisors have to in turn consult other professionals in their own field due to the uncertainty surrounding the interpretation of tortuous legislation. By their very nature, advisors will generally err on the side of caution in providing advice and opinions. That caution can often lead to the stifling of otherwise meritorious business and investment decisions. Over the years various governments at both the State and Federal level have attempted to simplify complex pieces of legislation, only to realise that the simplified legislation is often as misunderstood as the complex legislation it replaced. The cost to the community as a whole due to such complexity is enormous. The myriad hours involved in trying to find the answer to often simple tax issues serves no productive purpose whatsoever. Is it any wonder that many individuals and organisations move their operations offshore to countries with simpler tax environments?
