Fed: Insolvencies predicted to surge in face of tax changes

AAP General News (Australia)
12-05-1999
Fed: Insolvencies predicted to surge in face of tax changes

An accounting firm specialising in medium-sized businesses predicts the GST and the
new pay-as-you-go tax system will create a surge in businesses going broke.

Melbourne-based firm PITCHER PARTNERS, says it expects the increase in insolvencies
to begin as early as the New Year and peak in the second half of 2000.

The new pay-as-you-go tax system, to be introduced on July 1, 2000, will also cause
problems for companies that hadn't planned ahead for a duplication of payments caused
when the old and new systems overlap.

AAP RTV imc/as

KEYWORD: TAX (MELBOURNE)

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