The Business Council has provided an additional submission in response to the Black Economy Taskforce: Additional Policy Ideas report.
The Business Council maintains its strong belief that all companies and individuals must meet their tax and legal obligations and we strongly endorse the work of the Taskforce in this regard. A willingness by governments to address the black economy is important for maintaining and improving trust in the tax system and the institutions that govern it.
As noted in the Black Economy Taskforce Interim Report, one of the key drivers of the black economy is high tax and regulatory burdens. Instead of increasing the stock of regulation to respond to black economy concerns, the Business Council urges the Taskforce to consider the benefits of broader tax reform and making existing regulation more effective.
Laws and regulations should not be so numerous, complex or burdensome as to stifle legitimate business activity or discourage people from willing participation and compliance.