Australia’s international taxation system is retarding its ability to participate fully in the international economy, according to the Business Council of Australia.
Releasing the BCA/Corporate Tax Association submission to the Review of International Taxation Arrangements, BCA Chief Executive Katie Lahey said positioning Australia to capture the benefits of globalisation and overcome the threat of being marginalised was the central, long-term economic challenge.
“Our international tax arrangements are a key element in meeting that challenge but are presently inadequate,” she said.
“They distort decision making, are arbitrary and unnecessarily complex.
“Critically, in the face of rapidly changing international tax regimes around the world, Australia’s international tax system is becoming less competitive.”
Ms Lahey said against this background, the review should focus on four key outcomes:
1. Building the attractiveness of Australia as a location for foreign investment;
2. Increasing Australia’s appeal as a regional headquarters for international business;
3. Facilitating Australian investment opportunities abroad; and
4. Improving Australia’s ability to attract and retain highly-skilled, internationally mobile personnel.
“The review is an important opportunity to ensure our international tax system is keeping pace with a rapidly changing market for investment and talent and is promoting prosperity,” she said.
“It provides a timely opportunity to remove the obstacles, strip out the complexity and enhance the competitiveness of international tax law.”