Chief executive Warwick Grigor of BGF Equities criticized Ken Henry for seriously recommending the resource super profits tax from the Henry Tax review.

"To bring on a tax like this is to destroy our No. 1 comparative advantage in global economics," Mr Grigor said angrily.

Mr Grigor reminds the government that money is leaving Australia, which is putting the country in a tough situation, branded as an “unreliable place for investment.”

“International investors do not trust this Government, or Treasury for the advice it gives,” he said.

Dr Henry, meanwhile, argued that the resource profit tax is not a hindrance for the sectors, rather, an advantage since it is a long-term reform that leads to more mining activities.

“It was not our view that this RSPT in any way affects the pattern of Australia's comparative advantage," Dr Henry said.

Dr Henry adds that RSPT is poorly comprehended by the sectors involved.

Mr Henry also said that a source told him yesterday that the gold mining industry in 1980's will not survive if they were exempted from income tax.

"The dire predictions of the past have not eventuated and it is unlikely that similar predictions today will fare any better."

However, Mr Grigor said there was an error in Dr Henry's research, saying that gold sector was not taxed during the 1980s. Now, the mining sector pays its “fair share of tax.”

Mr Grigor said that if the RSPT gets a go-ahead signal from the government, miners will have to risk in investing in the State to enjoy the benefits of the resource tax reform, which is quite absurd.