This submission provides feedback on the Monthly Pay As You Go Instalments for Large Taxpayers Consultation Paper released by the Treasury in February 2013.
The business community remains prepared to pay its share of tax but also has an expectation that the tax system will be administered efficiently and effectively and, to the extent possible, with a minimal compliance burden on businesses.
The government’s proposal to change the timing of company tax payments by large companies is not without risk to the operating environment for businesses.
Feedback received from Business Council members has noted a number of practical impacts of the proposed changes to the timing of payment of tax instalments. This includes through the potential to impose an additional compliance and administrative burden; the risk of material implications for companies’ cash flow and working capital requirements, and potential effects on companies’ interest costs.
These issues are important at a time when businesses are being challenged by a high-cost business climate in Australia and when a central challenge remains to strengthen business confidence.