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A picture tells a thousand words…

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If you look carefully you can find the amount those dodgy large corporate group dodge their tax affairs (illegally avoiding $2 billion in tax each year), but it is hard to see next to the ridiculously large amounts that small businesses (illegally avoiding $11.1 billion in tax each year – over 70% due to not declaring cash sales), individuals (illegally avoiding $8.4 billion in tax each year – around 80% dodgy work related deduction claims) and GST (illegally avoiding $5.2 billion in tax each year – mostly small businesses not declaring cash payments).

For the decades I have been involved in tax policy in this country, the biggest problem with our tax system is not loopholes or large business structuring… It has been dodgy small businesses not declaring cash and dodgy individuals (and sometimes their dodgy tax agents – the most recent research in Australia shows tax agent prepared returns make more mistakes on work related deductions than self prepared returns) making up deductions.

Lets not increase rates or bring in new taxes. Lets just fix the dodgy individuals and small businesses.