Question

The Tax Working Group outlined the following seven criteria for assessing tax policy in their 2019 report: Equity and Fairness, Efficiency, Certainty and Predictability, Compliance and Administration, Revenue Integrity, Fiscal Adequacy, and Coherence.

Answer 1

Achieving fairness, including throughenhancements to ‘horizontal equity' and‘vertical equity’.Procedural fairness is also important fora tax system.

Efficiency:Minimising impediments to economicgrowth and avoiding distortions to theuse of resources.▪Broad-base, low rate is key!

Compliance and Administration:Minimising the costs of compliance andadministration and giving taxpayers asmuch certainty as possible.

Revenue integrity: minimise opportunities for tax avoidance and arbitrage.

Fiscal adequacy: raise sufficient revenue for the Government's requirements.

Coherence: ensure that individual reform options make sense in the context of the entire tax system.