INTHEBLACK July/August 2023 - Magazine - Page 4
CPA AUSTRALIA
Why efficient tax
systems are vital
“The tax system should offer
certainty for both those paying
tax and those collecting it.”
Welcome to the July/August issue of INTHEBLACK.
Governments around the world are under financial pressure.
Global disruption, geopolitical tensions, pandemic-related
spending and rising interest rates have squeezed central budgets.
Global headlines are increasingly dominated by discussions
about prudent spending, cutting back and how governments
can afford the services we want and need.
Naturally, this leads to questions about tax systems. Of course,
there is no such thing as the perfect tax system. Tax settings
necessarily differ, depending on the country, its economic
imperatives and its values.
The principles of an efficient tax system, however, remain
the same no matter where you operate.
It must be equitable, flexible, efficient and easy to understand.
It needs to maintain a balance between raising government
revenue without impeding economic growth.
The tax system should offer certainty for both those paying tax
and those collecting it.
In seeking to restore balance to central budgets, it is important
to remain mindful of how economies and government interact
with each other.
For instance, new taxes can have dramatic effects on a country’s
competitiveness. They can dampen economic activity or cause it
to relocate. After all, capital and talent are increasingly mobile.
Long-term economic growth and raising prosperity is the
ongoing challenge. We urge governments not to succumb to quick
fixes, but to consider all relevant economic interdependencies as
they seek to achieve budget repair.
M E R R A N K E L S A L L A O F C PA
C PA A U S T R A L I A P R E S I D E N T A N D C H A I R
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4 INTHEBLACK July/August 2023
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Reporting
Awards
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