Australia: National Accountancy Body Calls For Task Force To Compensate GST Bankruptcy Victims

by Mary Swire, Tax-News.com, Hong Kong

17 July 2001

After receiving figures from the Inspector-General in Bankruptcy, Australia's National Tax and Accountants Association (NTAA) has demanded that the government set up a task force with the power to deal with receivers and liquidators and to monitor the growing number of bankruptcies in the country which have arisen from the very unpopular Goods and Services Tax (GST).

According to the Inspector-General there were 1517 bankruptcies in the June 2001 quarter, a sharp increase from the same period last year of 850. 'This reflects an increase of 78% when comparing the two quarters,' stated the Inspector-General's report.'

Ray Regan, president of the NTAA, is convinced that this is 'clear evidence' that the GST has 'destroyed many businesses and put thousands of employees out of work.'

Mr Regan continued to argue: 'The only question that remains, is how many more businesses will go into bankruptcy and how many thousands of jobs will be lost. The government needs to immediately set up a task force and properly address the alarming number of bankruptcies, which is occurring on a national basis.'

Recommended