The income tax laws currently run to over 8,000 pages of legislation in stark contrast to the relatively succinct accounting rules. This highlights the many differences between these rules in determining and calculating net income. The Ralph Report though sought to ‘align more closely taxation law with accounting principles wherever possible’. This paper seeks to examine the appropriateness of such an approach, using the new Simplified Tax System [STS] for small business as a case study. In doing so this paper firstly provides a background to the STS provisions and sets out the eligibility requirements. Secondly, this paper compares the tax accounting features of the STS system with both the non-STS income tax laws and the accounting rules. This comparison finds that the STS exacerbates departures between the accounting and tax rules. Additionally, this paper examines the justification for the STS with regard to the taxation policy goals of simplicity, equity or efficiency. This paper finds that the STS fails these generally accepted taxation policy benchmarks. The paper concludes that policy makers would be better off reducing the volume of income tax law for small business by aligning the income tax laws more closely with the accounting rules.