Simplicity and Complexity in Australian Income Tax

Abstract

'Simplification' has been the mantra of tax reformers and tax deformers since the late 1950s and has frequently been cited as a rationale for tax changes in the latter half of the twentieth century. The near universal agreement by tax critics that simplicity is an object of tax reform is not mirrored by universal agreement as to what simplicity entails. For some, simplicity means a tax system that is easy and inexpensive to comply with. For others, it means simple and easy to understand language in the tax legislation. And for others still, simplicity means simple in its effect, with a comprehensive law containing a minimal number of rules and distinctions so all arrangements or transactions with similar economic effects will receive the same tax treatment.