Discussion Paper Chapter 1: Background to self assessment and the focus of the review This Chapter provides the context and essential background for the Review. It discusses the nature of income tax assessment and compares certain aspects of the current self assessment system with the full assessment system it replaced. The Chapter explains why the change was made, how the self assessment system has evolved and gives an overview of how the Tax Office approaches its compliance work. As further background, Chapter 1 highlights some similarities and differences between our system and that of four other countries with which Australia commonly compares itself: Canada, New Zealand, the United Kingdom and the United States. The Chapter also introduces themes that are the focus of the Review, including: how the current arrangements affect taxpayer uncertainty and the consequences of that uncertainty the need to balance the potentially conflicting objectives of collecting income tax, protecting
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