Tax simplification: a review of initiatives in Australia, New Zealand and the United Kingdom

Abstract

This paper examines the role of tax simplification in the operation of a tax system as a whole and then uses that framework to analyse initiatives in Australia, NZ and the UK. We begin with the subject of simplification itself and what it can mean, and follow this with a discussion concerning how to simplify tax systems. The paper then focusses on three key steps with simplifying tax systems, namely: simplifying tax law, simplifying taxpayer communications and simplifying tax administration. The paper then examines several long term approaches to simplification, such as the Office for Tax Simplification in the UK and the TWG in NZ. The paper observes the contrasting approach of Australia, such as pre-filling tax returns, which has not simplifed its tax system. Prior to the concluding observations, the paper suggests that the establishment of some form of independent authority may enable effective simplification of the tax systems in the three jurisdictions reviewed.