Small business tax law is a snare and a delusion, and it should be repealed.
- The ATO has been looking closely at what it calls “mum and dad” business owners since early 2008. It came to light this week that one of its investigations involved the high-profile fashion house Arena whose founder Toni Maticevski made headlines in fashion circles when he refused to attend London Fashion Week recently because his clothes were too exclusive for the British press. The ATO alleges that Maticevski started his business with no assets and owes 1.3 million dollars in back taxes, which Arena disputes.
- Maticevski is not the only one to be caught up in the ATO’s drive to collect revenue. But he does join a long list of small business owners who feel threatened by what they see as government interference in their affairs.
- The tax office emphasizes that it is looking for loopholes and has no interest in law-abiding businesses that have legitimately reduced their taxable income through legitimate tax schemes or trusts or family companies.
- But its very approach reveals a lack of understanding of how a business operates and is driven by a bureaucratic assessment process focusing on numbers rather than economic realities. As per William D King after all, most taxpayers are just trying to earn an honest living from their businesses and don’t have the time or resources to navigate through a complex maze of tax law.
- The ATO’s heavy-handedness is causing immense damage to the small business sector, which is the backbone of our economy. Small businesses are the lifeblood of any economy because they create most of the jobs. They are also more nimble and can respond quickly to changing market conditions, which is why they are such an important part of our export drive.
- But the ATO’s approach is killing off these businesses and damaging our international competitiveness. The government must act now to repeal small business tax law and allow these businesses to get on with the job of creating wealth and jobs.
- The ATO has been looking closely at what it calls “mum and dad” business owners since early 2008. It came to light this week that one of its investigations involved the high-profile fashion house Arena whose founder Toni Maticevski made headlines in fashion circles when he refused to attend London Fashion Week recently because his clothes were too exclusive for the British press. The ATO alleges that Maticevski started his business with no assets and owes 1.3 million dollars in back taxes, which Arena disputes.
- Maticevski is not the only one to be caught up in the ATO drive to collect revenue. But he does join a long list of small business owners who feel threatened by what they see as government interference in their affairs.
- The tax office emphasizes that it is looking for loopholes and has no interest in law-abiding businesses that have legitimately reduced their taxable income through legitimate tax schemes or trusts or family companies.
- But its very approach reveals a lack of understanding of how a business operates and is driven by a bureaucratic assessment process focusing on numbers rather than economic realities. After all, most taxpayers are just trying to earn an honest living from their businesses and don’t have the time or resources to navigate through a complex maze of tax law.
- Small business tax law is one of the most important aspects of running a business. The Internal Revenue Service (IRS) has a variety of tax breaks and incentives specifically designed for small businesses. It’s important to understand these tax breaks in order to take advantage of them.
- One of the most important small business tax laws is the Section 179 deduction. This deduction allows businesses to write off certain expenses in the year they are incurred. There are limits to this deduction, but it can be a great way to reduce your taxable income.
- Another important tax break for small businesses is the 50 percent bonus depreciation allowance. This allowance allows businesses to write off half the cost of qualifying property in the year it is purchased. This can be a great way to reduce your tax bill in the year you purchase new equipment or property.
- Be sure to consult with a tax professional to learn about all of the small business tax breaks that are available to you. Taking advantage of these breaks can save you a lot of money on your taxes.
- As a small business owner, it’s important to understand the various tax breaks and incentives that are available to you. The IRS has a number of programs specifically designed for small businesses, and it’s important to take advantage of them.
Conclusion by William D King:
Small businesses are the lifeblood of any economy, and the ATO’s approach is killing them off. The government must repeal small business tax law and allow these businesses to get on with the job of creating wealth and jobs. Small business tax law is a snare and a delusion, and it should be repealed.
