Anti-avoidance Legislation Costly and Won’t Work
Anti-avoidance Legislation Costly and Won’t Work
ACT
Finance Spokesman Rodney Hide said today that the
Government’s new anti-avoidance legislation was costly,
unnecessary and wouldn’t work.
“Dr Cullen was warned when
he rushed his tax-hike Bill through the House under urgency
before Christmas that his legislation was deficient, that
the policy was muddle-headed and that more legislation would
be needed to patch it up.
“This is now the second piece
of legislation announced attempting to fix the gaps in our
tax base that the hike to 39 cents has made possible. The
first was the five-percent withdrawal tax on super funds.
We now have the Minister targeting trusts, companies and
partnerships that as was predicted can be used to avoid his
tax hike.
“The Minister’s response is dopey. It makes
our tax laws even more costly and complicated. The new
rules are easily got around.
“There’s no doubt there will
be more legislation as Dr Cullen continues to attempt to
plug the holes he has created.
“The mistake was to hike
the top rate to 39 cents in the first place. That tax hike
was unnecessary and very bad economically. It looks like
the Minister of Revenue is now going to spend all his time
attempting to plug the gaps instead of just admitting his
mistake and going back to 33 cents,” concluded Rodney Hide.
ENDS