Pulse Alert – News Pulse for November 7, 2018

A daily download of SME, startup, fintech and tax news from around Australia.

ASIC is Canberra’s ‘cash cow’

A former senior executive with the corporate watchdog has called out the federal government for running the regulator at a vast ­“effective profit” by using it to reap over $4 billion in fees and charges over the past decade, overwhelmingly from small businesses and the public.

In a submission to the banking royal commission, Richard Harrison, who was an executive officer with the Australian Securities & Investments Commission from 2004-2014 and held the role of senior manager for strategic intelligence, said if ASICAustralian Securities and Investments Commission (ASIC) is Australia’s corporate, markets and financial services regulator. asic.gov.au had inadequate funding to operate properly that was the fault of the federal government.

ASIC should not be a cash cow

Small business has every reason to feel ripped off by the high fees and poor service being delivered by Australia’s corporate regulator, the Australian Securities & Investments Commission. In a case of bureaucracy gone mad, during the past two decades ASICAustralian Securities and Investments Commission (ASIC) is Australia’s corporate, markets and financial services regulator. asic.gov.au’s profit margins have doubled as its performance as the regulator has sunk to a level that can be described only as an embarrassing scandal. The banking royal commission has exposed ASICAustralian Securities and Investments Commission (ASIC) is Australia’s corporate, markets and financial services regulator. asic.gov.au’s dismal record when it comes to holding the big end of town to account.

But while bankers have been getting away with continuing to bill dead clients and charge fees for services that were not provided, small business has been plundered for the funds to beef up general government revenues through an initiative-sucking regime of hidden taxation. Analysis by this newspaper’s Anthony Klan has exposed how revenues raised by ASICAustralian Securities and Investments Commission (ASIC) is Australia’s corporate, markets and financial services regulator. asic.gov.au for the federal government have ballooned from 1.5 times the cost of operating in 1993 to more than 3.5 times the regulator’s cost of doing business today. ASICAustralian Securities and Investments Commission (ASIC) is Australia’s corporate, markets and financial services regulator. asic.gov.au’s annual report shows it raised $761 million in fees charged to business, mainly for its data­bases; $155m in fines (driven by penalties for late payments of those fees); and $64m charged to the public to access its “public” busines­s registry databases. The total for those fees, which have been growing about three times the rate of inflation for the past decade, comes to $980m before accounting for new “user-pays” levies that were introduced last year and takes the overall tally to $1.227 billion.

Labor wants to name and shame dodgy phoenix directors

Dodgy phoenix directors would be named and shamed under a Labor proposal to stamp out illegal phoenix activity — a problem that is costing the economy billions of dollars annually.

Labor, if elected, would grant the Tax Commissioner the powers to name and shame individuals and entities as a penalty for the most serious tax offences.

KKR nudges up bid for MYOB, granted due diligence

MYOB will grant due diligence to KKR & Co after the U.S. buyout giant sweetened its offer to take full control of the accounting software provider firm to $1.8 billion.

KKR, which owns 19.9 per cent of MYOB, lifted its bid for the rest of the shares by two per cent to $3.77 per share, valuing the company at $2.2 billion.

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