Avoidance, Evasion and Reform : Who Dismantled and Who's Rebuilding the Australian Income Tax System?

In the 1970s, the Australian income tax system was subject to a wave of avoidance and evasion unprecedented in this country and probably unmatched anywhere else in the world. The episode cost revenue billions of dollars, did untold damage to the social fabric of our country and permanently altered the public perception of both the legal profession and the judicial process in Australia. In the end, tax avoidance was made possible because the legislature lacked the political courage to address the crucial flaws that undermined the entire income tax structure. Its failure to protect the integrity of the tax base and progressive rate structure left this country's income tax system devoid of principles or purpose, For the moment, tax "reform" has papered over the worst excesses of the tax avoidance era. The root causes of the avoidance remain, however, and will continue to do so until the legislature is prepared to legislate the real reforms the Australian tax system desperately needs