He suggests that his organization emphasizes to its members that they should act ethically rather than simply legally and they advise against misusing provisions in unintended fashions for the purposes of taxation minimisation. Conway says it is disappointing to see individuals taking advantage of loopholes to avoid paying their due amount of tax.
He notes that the ATO has sophisticated methods of detecting those attempting to rort the system and that any one avoiding tax can expect a visit from the ATO. Caller Alan rings in to suggest that anyone avoiding income tax still has to pay GST. Conway says a ‘mature debate’ is needed on the scope of the base for GST and that a consumption based tax like GST is quite effective at capturing revenue. Conway responds to the host’s contention that a minimum tax payment should be imposed on all high income earners by suggesting that such a move would be like ‘using a sledgehammer to crack a nut’. He also responds to a question about the fidelity of family trusts and suggests that many of the loop holes related to family trusts have since been removed.
