CPA Australia warn of anti-avoidance impacts
Key accounting body CPA Australia has warned that uncertainty surrounding the Government's intended tightening of the anti-avoidance provisions within the tax law makes it prudent for business to put key decisions on hold.
CPA Australia head of business and investment policy Paul Drum said businesses faced greater uncertainty and productivity losses as a result of the Government's moves on the anti-avoidance provisions.
Further, he said CPA Australia was of the view that the changes being pursued by the Government tinkered with a system which operated with the most stringent anti-avoidance provisions and which had, to date, operated effectively.
"These rule changes, which come into effect immediately, inject a heightened element of risk for companies should they take any significant business decisions until there is greater detail,' Drum said.
"In effect the message to business is: don't sign a major contract or embark on a significant undertaking until the bill is introduced to the Parliament," he said.
"The lack of clarity around the tax implications of such decisions means it would be wise to put such actions on hold."
Drum said the sweeping legislative changes being pursued by the Government appeared to be an over-reaction to a few individual incidents.
"As such, we believe a case by case approach would be more practical," he said.
AUTHOR
Mike Taylor
Recommended for you
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
Shaw and Partners has merged with Sydney wealth manager Kennedy Partners Wealth, while Ord Minnett has hired a private wealth adviser from Morgan Stanley.
Australian investors are more confident than their APAC peers in reaching their financial goals and are targeting annual gains of more than 10 per cent, according to Fidelity International.
Zenith Investment Partners has lost its head of portfolio solutions Steven Tang after 17 years with the firm, the latest in a series of senior exits from the research house.
