Australian business finding it harder to pay taxes

According to The Paying Taxes 2016 report, Australian companies are finding more difficult to pay their business taxes

Australian businesses are finding it more difficult to pay their taxes, according to a report released today. The news comes at a time when the Turnbull Government is trying to make the tax system more efficient.

The Paying Taxes 2016 report, compiled by PricewaterhouseCoopers and World Bank Group, reveals that Australia is now ranked in 41st place in the world for the ease with which companies pay their taxes – a drop of two places on its ranking a year ago.

Governments around the world are increasingly aware that tax is an important dimension of an economy’s competitiveness, according to the report, and that tax rates affect growth and inward investments.

But it is not just the rate of tax that is important.

‘The way in which the tax system collects and administers its taxes has an impact on business in terms of the time required, and the costs associated with that time, the report says.

Qatar and United Arab Emirates are jointly ranked the easiest countries in the world for companies to meet their tax obligations, while Bolivia is ranked the worst, in 189th position.

Australia trails the UK – 15th – and New Zealand – 22nd – but sits above the United States, Japan and China which rank 53rd, 121st and 132nd respectively.