Letter to the Editor – AFR
Gavin R. Putland, Melbourne

Instead of prosecuting small businesses for making mistakes with capital gains tax concessions (“Tax Office hits small business”, AFR, August 30), why not abolish the concessions and use the extra revenue to lighten the compliance burdens concerning personal income tax and goods and services tax?

As capital gains overwhelmingly represent economic rent, it is both efficient and equitable to tax them at a high rate. But requiring small businesses to work as unpaid collectors of income tax and GST is neither efficient nor equitable, and appears to contravene section 82 of the Constitution, according to which the “costs, charges, and expenses” incident to collection of tax are chargeable to consolidated revenue.