Ken Devos Taxpayers and Tax Players

2 Tax Simplification for Personal Taxpayers Henry Report- Recommendation 11 –A standard deduction should be introduced to cover work related expenses and the cost of managing tax affairs to simplify personal tax for most taxpayers Recommendation not responded to in Henry but adopted in the Budget Tax Reform After Henry

3 Tax Simplification for Personal Taxpayers Henry Report- Recommendation 123 –Pre-filled personal income tax returns should be provided to most personal taxpayers as a default method of settling their tax affairs Recommendation is currently being considered by Government Tax Reform After Henry

4 Tax Simplification for Personal Taxpayers Relevant factors to consider regarding the standard deduction…. Other measures necessary to significantly reduce the number of taxpayers lodging annual returns… Tax Reform After Henry

5 Tax Simplification for Personal Taxpayers Concern for the viability of many small tax agent practices? Improvements in technology can assist both tax agents and taxpayers to lodge in a timely manner Tax Reform After Henry

6 Tax Simplification for Personal Taxpayers Henry Report- Recommendation 14 –Provide a 40% savings income discount to individuals for non-business related: > a). net interest income, > b). Net residential rents (including interest expenses) > c). Capital gains > d). Interest expenses –related to listed shares held by individuals as non-business investments Tax Reform After Henry

7 Tax Simplification for Personal Taxpayers Recommendation not responded to in Henry but adopted in the Budget Implications of the savings discount…. Government seeking consultation in 2010/11 on… Related Measure Tax Reform After Henry

8 Tax Simplification for Personal Taxpayers Concluding comments… Tax Reform After Henry