Academic literature on the topic 'Tax accounting – Law and legislation – Australia'
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Journal articles on the topic "Tax accounting – Law and legislation – Australia"
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Curran, Michael, and Prem W. S. Yapa. "Examining the Taxation Profession in Australia – A Framework." Australasian Business, Accounting and Finance Journal 15, no. 3 (2021): 3–22. http://dx.doi.org/10.14453/aabfj.v15i3.2.
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This paper examines the nature of the taxation profession in Australia and its development over the past three decades and then suggests a framework to analyse important initiatives that have taken place during this period. Using secondary sources and the organizing principles of State, Market and Community (Puxty et al., 1987), we begin with the subject of tax policies and legislation introduced by the state and its impact on the tax profession in Australia. We follow this with a discussion relating to the recognition of Australian tax practice as a profession. The paper then focusses on two key areas of professional development during the last three decades, namely: tax law and tax administration. The paper finds interesting issues relating to professionalization of taxation in Australia. With the involvement of the state, market and the society over the last three decades, there is a requirement to recognise taxation practice as a profession in Australia. The paper suggests that the establishment of the Tax Practitioners Board[1], a statutory body to regulate the taxation profession in Australia, in conjunction with approved professional associations, may have enhanced the effective maintenance of the tax profession which has contributed to social, political and economic development in Australia. [1] The Minister for Revenue and Financial Services appoint the Board, so there is some degree of control by the state.
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Park, Wan-Kyu, and Toni Smith. "On the Progress of Option-Regulating Legislation." ATA Journal of Legal Tax Research 2, no. 1 (January 1, 2004): 75–83. http://dx.doi.org/10.2308/jltr.2004.2.1.75.
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A great deal of debate currently surrounds stock-option-based compensation. Its many facets involve preferential tax treatment, the alternative minimum tax, and financial accounting procedures. The issue involves many; options affect an estimated 10 million people and 20–25 percent of all publicly held U.S. firms. Compensatory stock options were originally incorporated into the Internal Revenue Code in 1950 with the addition of Section 130A. At that time, the incentive effects of this form of compensation were deemed worthy of preferential tax status. In the 1950s, gains associated with tax-preferenced options were taxed at the lower, 25 percent, capital gains rate instead of the 91 percent applied to ordinary income. While stock option provisions have been revised and continue to be the topic of legislative discussion, they remain a part of tax law. This paper traces the legislative history of the special tax status of compensatory stock options and highlights the congressional intent and economic conditions surrounding the revisions made over the past 50 years.
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Storm, Ansia, and Katrina Coetzee. "Towards Improving South Africa's Legislation On Tax Evasion: A Comparison Of Legislation On Tax Evasion Of The USA, UK, Australia And South Africa." Journal of Applied Business Research (JABR) 34, no. 1 (December 29, 2017): 151–68. http://dx.doi.org/10.19030/jabr.v34i1.10106.
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The fight against tax evasion in South Africa is an ongoing battle. The tools available to law enforcement boil down to legislation and the enforcement thereof. The purpose of the study that was done for this article was to compare available legislation of the United States of America, United Kingdom, Australia and South Africa to determine if South Africa’s legislation can be improved. This was done by studying the relevant literature and legislation of all four countries. The findings, that there is some clauses that can be added to improve South Africa’s legislation, were confirmed by analyzing the legislation available. In theory, the results have proven that although South Africa’s legislation can compete with that of the United States of America, United Kingdom and Australia, there is some improvement that can be considered. This is of value to the individuals and professionals who deal with the offence of tax evasion on a daily basis, ensuring that the reviewed legislation will deter perpetrators or that the charges brought against them in the court of law will ensure harsher punishment.
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Richardson, Ivor. "Simplicity in Legislative Drafting and Rewriting Tax Legislation." Victoria University of Wellington Law Review 43, no. 3 (September 1, 2012): 517. http://dx.doi.org/10.26686/vuwlr.v43i3.5032.
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The search for simplicity in legislative drafting affects all legislatures. It is also central to the work of the New Zealand Law Commission and of governments in other comparable jurisdictions. Rather than exploring a range of statutes in various jurisdictions, this article focuses on income tax. It does so for two reasons. The first is that income tax has been crucial to the funding of government in common law jurisdictions and to achieving a legislative balance between simplicity and other criteria of an acceptable tax system. The second is that we can draw on three recent projects to rewrite income tax legislation – in Australia, the United Kingdom and New Zealand.
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Burton, Hughlene A., and Noel Brock. "Congress Finally Passes Carried Interest Legislation, But is it Enough?" ATA Journal of Legal Tax Research 17, no. 1 (March 1, 2019): 9–24. http://dx.doi.org/10.2308/jltr-52586.
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ABSTRACT After numerous failed previous attempts to enact legislation taxing “carried interest” income attributable to services as compensation income versus capital gains, Congress enacted Section 1061 as part of the Tax Cuts and Jobs Act. Unlike previous proposals, which would tax carried interest income attributable to services as compensation income, Section 1061 simply reclassifies some carried interest income attributable to services as short-term capital gain. By choosing to treat carried interest income attributable to services as short-term capital gain instead of as compensation income, Section 1061 exempts such income from self-employment tax and allows taxpayers to offset such income with an unlimited amount of short-term capital losses. This paper reviews the requirements under Section 1061 and explains several ambiguities created by the new law. In addition, this paper examines whether Section 1061 follows sound tax policy. The authors find that Section 1061 does not follow the tax policy concepts of equity and fairness, economic efficiency, neutrality, simplicity, or certainty. In addition, the authors find that Section 1061 will have minimal impact, as most carried interest is held longer than the required period to qualify as long-term capital gain.
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Tredoux, Liezel G., and Kathleen Van der Linde. "The Taxation of Company Distributions in Respect of Hybrid Instruments in South Africa: Lessons from Australia and Canada." Potchefstroom Electronic Law Journal 24 (January 12, 2021): 1–36. http://dx.doi.org/10.17159/1727-3781/2021/v24i0a6781.
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Tax legislation traditionally distinguishes between returns on investment paid on equity and debt instruments. In the main, returns on debt instruments (interest payments) are deductible for the paying company, while distributions on equity instruments (dividends) are not. This difference in taxation can be exploited using hybrid instruments and often leads to a debt bias in investment patterns. South Africa, Australia and Canada have specific rules designed to prevent the circumvention of tax liability when company distributions are made in respect of hybrid instruments. In principle, Australia and Canada apply a more robust approach to prevent tax avoidance and also tend to include a wider range of transactions, as well as an unlimited time period in their regulation of the taxation of distributions on hybrid instruments. In addition to the anti-avoidance function, a strong incentive is created for taxpayers in Australia and Canada to invest in equity instruments as opposed to debt. This article suggests that South Africa should align certain principles in its specific rules regulating hybrid instruments with those in Australia and Canada to ensure optimal functionality of the South African tax legislation. The strengthening of domestic tax law will protect the South African tax base against base erosion and profit shifting through the use of hybrid instruments.
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Mooney, Jane, Kathleen Weiden, and Jang Shee Barry Lin. "Tax-related political costs and incentives to voluntarily expense stock options an analysis of the regulatory landscape." Corporate Ownership and Control 7, no. 1 (2009): 350–62. http://dx.doi.org/10.22495/cocv7i1c3p2.
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The threat of regulation is clear when proposed legislation is introduced in Congress or when other regulatory bodies formally begin consideration of new, tighter requirements. When faced with proposed undesirable regulation, firms may attempt to deflect it in a variety of ways. Accounting and economics research suggests that firms use accounting policy choice as a means of reducing political costs. Prior to 2002, only two firms voluntarily expensed stock options under the provisions of FASB 123. By the end of 2003, a number of firms volunteered to expense stock options in the face of possible mandates from the FASB. A close examination of the record of regulators’ activities indicates that, during 2002 and 2003, Congress proposed five pieces of legislation that would increase the tax costs of firms and six pieces of legislation that would increase the taxes of firm managers. We suggest that the decision to begin expensing options reflects firms’ and managers’ beliefs that the voluntary expensing of stock options for financial reporting purposes would ward off regulatory efforts to convert proposed tax legislation affecting the firms’ and managers’ taxes into enacted tax law. Our preliminary analysis provides evidence consistent with this general hypothesis. While prior research on the impact of taxes on accounting policy choice has examined accounting policy choice in response to enacted tax legislation, this paper provides early evidence on accounting policy choice in the face of proposed tax legislation.
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Oler, Mitchell, Terry Shevlin, and Ryan Wilson. "Examining Investor Expectations Concerning Tax Savings on the Repatriations of Foreign Earnings under the American Jobs Creation Act of 2004." Journal of the American Taxation Association 29, no. 2 (September 1, 2007): 25–55. http://dx.doi.org/10.2308/jata.2007.29.2.25.
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The American Jobs Creation Act of 2004 was signed into law on October 22, 2004. One of the most significant aspects of this legislation is a temporary tax holiday for dividend repatriations from foreign subsidiaries. U.S. multinational corporations may elect during a one-year window to deduct 85 percent of extraordinary cash dividends received from foreign subsidiaries. In this study, we model the impact that this legislation has on a firm's decision to either repatriate or reinvest foreign earnings from abroad. We then examine investors' assessment of how U.S. multinational corporations will respond to the temporary tax holiday. Our results indicate that investors repriced the tax liability consistent with investors anticipating that U.S. multinational corporations will repatriate a significant portion of their permanently reinvested foreign earnings during the tax holiday.
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Wright, Kathleen K. "Multistate Workers and Their State Tax Liabilities." ATA Journal of Legal Tax Research 10, no. 1 (May 1, 2012): 62–81. http://dx.doi.org/10.2308/jltr-50209.
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ABSTRACT The lack of uniformity of state laws applicable to employer withholding and their employees who work in multiple states has created a cumbersome compliance burden, not only for employers, but also for employees. This paper discusses the state tax ramifications associated with an employer having employees who work from a different state, and employers who have employees who perform services in multiple states. The paper also looks at proposed remedies for the mobile workforce issue, including proposed federal legislation and the Multistate Tax Commission's proposal addressing the issue. The paper considers whether Congress has authority under the Commerce Clause to regulate this issue. The paper concludes with alternative recommendations to consider as a workable solution.
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McDowell, Evelyn, and Pamela C. Smith. "Examining Tax Strategy Patents—An Analysis of Reform Measures." ATA Journal of Legal Tax Research 7, no. 1 (January 1, 2009): 16–32. http://dx.doi.org/10.2308/jltr.2009.7.1.16.
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Tax strategy patents (TSPs) are currently the center of debate due to their potential to monopolize interpretations of the tax code. Current legislative efforts to calm the debate surrounding tax strategy patents fail to do so. This paper analyzes current legislative reform measures aimed at TSPs. We identify both administrative and legislative problems surrounding TSPs, and argue that legislative reform that completely removes legal methods from patentable subject matter is critically necessary in order to provide equity for all taxpayers. Despite proposed legislation to curb the growth of TSPs, more stringent legislative and administrative reform is necessary in order to provide guidance to taxpayers and to advance tax policy.
Dissertations / Theses on the topic "Tax accounting – Law and legislation – Australia"
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Lignier, Philip Andre Cyberspace Law & Policy Centre Faculty of Law UNSW. "Identification and evaluation of the managerial benefits derived by small businesses as a result of complying with the Australian tax system." Publisher:University of New South Wales. Cyberspace Law & Policy Centre, 2008. http://handle.unsw.edu.au/1959.4/41018.
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This thesis explores the managerial benefits derived by small business entities as a result of complying with their tax obligations. This is the first study on managerial benefits that considers all federal taxes in the Australian context. While the managerial benefits of tax compliance were first identified by Sandford in the 1980s, there is only limited evidence to date about their perception by business taxpayers and no evidence at all about their actual occurrence. The work undertaken by Sandford together with the findings of empirical research on accounting in small businesses, provide the framework for the development of research hypotheses. With the purpose of testing these hypotheses, the research examines concurrently a sample of small businesses located in a regional area of Australia, and a sample of similar entities located in an external territory of Australia exempt from federal taxes and with minimal tax compliance obligations. The thesis adopts a mixed research method which combines a survey and a case study component from which a number of convergent results emerge. Results show that bookkeeping requirements imposed by tax compliance compel small businesses to upgrade their accounting systems, typically in the form of computerisation. The increased sophistication of the accounting system following this upgrade allows small businesses to derive managerial benefits in the form of a better knowledge of their financial affairs. The study also demonstrates that when small businesses seek the assistance of an accountant to comply with their tax compliance obligations, managerial benefits may be derived in the form of informal business advice and other services that come as a spin-off from tax compliance work. The findings of the research also indicate that a majority of small businesses value positively the accounting information generated as a result of tax imposed record keeping requirements, however further studies are required to establish the extent to which the additional information has a positive effect on decision making. Finally, the study identifies various possible approaches to quantify managerial benefits including a method based on the costs of alternative resources, and a valuation based on what owner-managers would be prepared to pay for the information.
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Tooma, Rachel Anne Law Faculty of Law UNSW. "A case for a uniform statutory general anti-avoidance rule in Australian taxation legislation." Awarded by:University of New South Wales. School of Law, 2007. http://handle.unsw.edu.au/1959.4/29348.
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Taxpayer certainty is the most frequently cited argument against statutory General Anti-Avoidance Rules (GAARs). However the vast literature criticising statutory GAARs fails to consider the extent of taxpayer uncertainty, and the potential for taxpayer uncertainty, in jurisdictions without a statutory GAAR. This thesis examines that gap in the literature. The thesis uses inductive reasoning to suggest that there is greater taxpayer certainty where a statutory GAAR exists and is appropriately administered. Specifically, it uses a case study to demonstrate that there is greater uncertainty for taxpayers where the administration, the judiciary and the legislature may use their vast powers to address perceived avoidance. The thesis then considers the form of a statutory GAAR that may best be expected to promote taxpayer certainty. Such analysis involves a comparison of Australia???s oldest statutory GAAR, Part IVA of the Income Tax Assessment Act 1936 (Cth) (and its predecessor section 260), with the more recent GAARs in Australia???s indirect tax legislation (GST and state stamp duty), and the GAARs of other jurisdictions, including New Zealand, Canada and South Africa. In order to promote taxpayer certainty, a uniform statutory GAAR is ultimately proposed for all Australian taxation legislation, with safeguards to ensure the appropriate administration of the uniform GAAR.
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McKerchar, Margaret Anne Australian Taxation Studies Program UNSW. "The impact of complexity upon unintentional noncompliance for Australian personal income taxpayers." Awarded by:University of New South Wales. Australian Taxation Studies Program, 2002. http://handle.unsw.edu.au/1959.4/19253.
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This study explores the impact of complexity upon unintentional non-compliance behaviour for personal taxpayers in Australia. This area of research did not appear to have been previously studied in an Australian context and in this respect, the study represents an original contribution. While studies have been conducted both in Australia and overseas, they have generally been directed at other types of compliance behaviour and tend to be inconclusive in their findings. According to the compliance literature, there appeared to be little consensus of opinion on the factors that determined behaviour and appropriate research methods. It emerged that more narrowly-defined studies with stronger research methods offered potential for furthering knowledge in this field. Thus the study focused on one behavioural outcome and one type of taxpayer, using a multi-paradigm research method. Unintentional non-compliance, as an outcome, was selected as it appeared to hold promise for improvements in overall compliance to be readily made, provided its causes were understood. Complexity was considered to be the most likely cause of unintentional non-compliance, and those who prepared their own income tax return, the group likely to be most affected. The study used both a quantitative and qualitative component from which a number of convergent results emerged. These included that the major cause of complexity was the ambiguity of tax laws and the volume of explanatory material required. Further, personal taxpayers were committed to compliance even though they regarded the system as less than fair. Together, complexity and commitment to compliance caused taxpayers to experience unnecessary compliance costs. Where taxpayers completed their own return, complexity resulted in a high level of errors that generally resulted in an overstatement of tax liability. In addition, some taxpayers chose to be over-compliant as a means of dealing with complexity and commitment. It was concluded that complexity compromised the integrity of the Australian income tax system by imposing an unfair burden on personal taxpayers in respect of both tax paid and compliance costs incurred. However, there appeared to be little, if any, financial incentive for the tax authority to address the causes of complexity for personal taxpayers.
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Kroukamp, Susan. "Possible tax treatments of the transfer of accounting provisions during he sale of a business and subsequent tax considerations /." Thesis, Stellenbosch : University of Stellenbosch, 2006. http://hdl.handle.net/10019.1/3336.
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Thesis (MAcc (Accountancy))--University of Stellenbosch, 2006.The potential buyer of a business evaluates the attractiveness of the transaction by considering the financial status of the business being sold. In determining the financial status of a business it is more important to determine the nature of the assets and liabilities recorded on the balance sheet rather than the mere existence thereof. Included in the liabilities are accounting provisions recorded in terms of the Generally Accepted Accounting Practice (GAAP) to reflect a fair representation of the financial status. Although these provisions are made for accounting purposes, they cannot necessarily be deducted under the terms of the Income Tax Act, no 58 of 1962. The tax deductibility of accounting provisions has long been a potential contention when a business is sold. The Income Tax Act has specific sections that must be applied in determining the deductibility of accounting provisions, for example, section 11(a), which is the general deduction formula; section 23(g), which prohibits expenses not laid out for the purposes of trade; and section 23(e), which does not allow a deduction when a reserve fund is created (for example a leave pay provision). In conducting this study, seven types of accounting provision generally recorded by businesses were identified: the bonus provision, leave pay provision, warranty provision, settlement discount and incentive-rebate provision, post employment provision, retrenchment cost provision and other provisions. These provisions are discussed in view of their possible income tax deductibility, and relevant case studies were identified to confirm the possible deductibility of these accounting provisions. In this study, the transfer of accounting provisions during the sale of a business is considered for the purposes of both the buyer and seller. The tax implications for the buyer and seller are then evaluated, as well as the subsequent treatment of the accounting provisions for the purposes of the buyer. Because the wording of the purchase contract is extremely important when a business is acquired, three examples of the wording of a purchase contract are discussed as well as the income tax implications thereof. The extent of the advice given by a tax practitioner will depend on the allegiance of the practitioner (either for the buyer or seller) and will determine how the contract will be concluded. In conclusion a tax practitioner would want to assist his client to obtain the most effective tax position for the transaction and therefore each purchase contract must be reviewed on its own set of facts.
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Chou, Sophie S. "The Foreign Account Tax Compliance Act: The Solution or the Problem?" Scholarship @ Claremont, 2016. http://scholarship.claremont.edu/cmc_theses/1247.
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Tax evasion has been happening for decades, but after the highly publicized cases with two foreign banks, LGT and UBS, the United States (US) is cracking down on tax evaders. The latest addition to the Internal Revenue Service (IRS)’s repertoire of enforcement tools is the Foreign Account Tax Compliance Act, otherwise known as FATCA. The Act was enacted to incentivize tax information release by foreign financial institutions (FFIs) who would otherwise face a 30% withholding tax on any US source income. The question was whether or not the design of the Act and its implementation successfully met this goal.
This paper explores the history leading up to FATCA’s creation, beginning from the basic data underlying tax evasion. With the US losing approximately $100 billion a year of tax revenue, the IRS is keen on reducing the money flow out of the US. It will dig deeper into the facts of the LGT and UBS cases which led to Congress’s realization that their other enforcement mechanisms were not sufficient and describe FATCA’s unintended impact. Through researching articles on the predicted impact of FATCA, surveys of FFIs, testimonials from US citizens, this paper will explain how FATCA has unfortunately detrimentally impacted FFIs and US citizens living abroad.
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Steenkamp, Casper Jan Hendrik. "Die rol van rekeningkundige beginsels en praktyk in die uitleg van die inkomstebelastingwetgewing in Suid-Afrika." Thesis, Stellenbosch : Stellenbosch University, 2006. http://hdl.handle.net/10019.1/20424.
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Thesis (MComm)--Stellenbosch University, 2006.AFRIKAANSE OPSOMMING: Hierdie werkstuk begin deur te ondersoek watter rol rekeningkundige beginsels en praktyk tot op datum by die uitleg van die inkomstebelastingwetgewing in Suid-Afrika gespeel het. Die gevolgtrekking word gemaak dat rekeningkundige beginsels 'n baie beperkte rei gespeel het. Die beginsels van wetsuitleg word dan ondersoek en die gevolgtrekking word gemaak dat daar wei ruimte vir rekeningkundige beginsels en praktyk is om 'n meer uitgebreide rol in die uitleg van die inkomstebelastingwetgewing, en meer spesifiek die bruto inkomste-omskrywing en die algemene aftrekkingsformule, te speel. Die werkstuk oorweeg dan die rol wat rekeningkundige beginsels en praktyk in die uitleg van die inkomstebelastingwetgewing in beide Australie en die Verenigde Koninkryk gespeel het. Die gevolgtrekking word gemaak dat rekeningkundige praktyk in beide hierdie jurisdiksies 'n meer uitgebreide rei in die uitleg van inkomstebelastingwetgewing as in Suid-Afrika gespeel het. Die mening word uitgespreek dat Suid-Afrika baat kan vind deur 'n soortgelyke benadering te volg as wat in bogenoemde jurisdiksies gevolg word. Die werkstuk sluit dan af deur die voor- en nadele van 'n stelsel te ondersoek waar die belasbare inkomste en rekeningkundige inkomste ooreenstem. Die gevolgtrekking word gemaak dat 'n mate van ooreenstemming aan te bevel is, maar dat volkome ooreenstemming nie sinvol is nie. Die inagneming van rekeningkundige beginsels in die uitleg van inkomstebelastingwetgewing kan bydra om die optimale graad van ooreenstemming te bereik.
ENGLISH ABSTRACT: Traditionaly accounting principles and practice played a very limited role in the interpretation of the income tax legislation in South Africa. This study starts off by investigating the role that accounting principles and practice played to date in the interpretation of the income tax legislation in South Africa. The conclusion is reached that accounting principles played a limited role. The principles of interpretation of legislation is then considered and a conclusion is reached that there is scope for accounting principles and practice to play an extended role in the interpretation of the income tax legislation, especially in the interpretation of the gross income definition and the general deduction formula. The study then considers the role that accounting principles and practice played in the interpretation of the income tax legislation in both Australia and the United Kingdom. The conclution is reached that in both these jurisdictions accounting practice played a more extensive role in the interpretation of income tax legislation than in South Africa. The opinion is expressed that South Africa can benefit from a similar approach as was taken in the abovementioned jurisdictions. The study concludes with an investigation into the advantages and disadvantages of having the calculation of taxable income conform to the calculation of income for accounting purposes. The conclusion is reached that conformity to some degree is advisable but that total conformity is not sensible. Taking accounting principles and practice into account in the interpretation of income tax legislation can help attain the optimal degree of conformity.
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Hodge, Dominic Shaughn. "The income tax consequences of the in-house development of software." Thesis, Rhodes University, 2014. http://hdl.handle.net/10962/d1013550.
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The objective of this thesis was to explore the nature of expenditure incurred on the internal development of software and its treatment in terms of the accounting and taxation frameworks to which it is subject. In fulfilling the primary objective the thesis had a number of subsidiary considerations. These included, firstly, a brief analysis of the approach of the software industry in South Africa to the taxation treatment of this type of software. The second consideration was a discussion and analysis of the taxation framework which differentiates between capital and revenue and the extent to which the receipts produced by internally developed software may be informative of the nature of the expenditure. The third was an analysis of the deductibility of expenditure incurred in the production of software with the fourth analysing the tests employed in the determination of whether expenditure is capital or revenue in nature. The fifth objective was to briefly analyse the accounting standards which find application in the determination of whether or not the software created can be considered a capital asset. The final subsidiary objective of the thesis was an analysis of the taxation framework applicable to software in respect of research and development incentives, as well as the position in the United States of America. Throughout the thesis the most apparent commonality is that there exists a significant level of uncertainty as to the taxation treatment of software both in South Africa and in America. The research concludes by stating that such uncertainty is prejudicial to the interests of research and development in relation to software.
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Evans, Christopher Charles Law Faculty of Law UNSW. "The operating costs of taxing the capital gains of individuals : a comparative study of Australia and the UK, with particular reference to the compliance costs of certain tax design features." Awarded by:University of New South Wales. Law, 2003. http://handle.unsw.edu.au/1959.4/20738.
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This study investigates the impact of aspects of tax design on the operating costs of the tax system. The thesis focuses on the Australian and UK regimes for taxing the capital gains of individuals. It contends that the compliance burden faced by personal taxpayers and the administrative costs incurred by revenue authorities are directly influenced by the design of the capital gains tax ('CGT') regimes in each country. The study bridges the divide between theoretical analysis of CGT and empirical studies on tax operating costs. It uses a hybrid research design to test a series of hypotheses that emerge from a review of the literature and the experience of the researcher. It combines a technical analysis of the relevant Australian and UK legislative provisions (including an analysis of the policy and other background data that underpins those provisions) with empirical research on the views and experience of practitioners who are responsible for the operation of the legislation in the two countries. The results obtained from this combined methodology indicate that the operating costs of taxing capital gains in Australia and the UK are directly affected by the design of the legislative provisions. Moreover, the study outcomes indicate that operating costs in both countries are high (on a number of comparative measures), have not reduced over time, and are both horizontally and vertically inequitable. The research indicates that the primary factors that cause the high operating costs include the complexity of the legislation and the frequency of legislative change, together with record-keeping and valuation requirements. The thesis identifies specific legislative changes that would address operational cost concerns. These include the phasing out of the 'grandfathering' exemption together with the introduction of an annual exempt amount, and the rationalisation of business concessions in Australia; and the abolition of taper relief and its possible replacement with a 50% exclusion in the UK. More importantly, it seeks a more principled approach to the taxation of capital gains in both countries, and emphasises that legislative change can and should only be enacted with a full and clear understanding of the operating cost implications of that change.
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Nguta, Mbulelo. "The meaning of expenditure actually incurred in the context of share-based payments for trading stock or services rendered." Thesis, Rhodes University, 2015. http://hdl.handle.net/10962/d1018661.
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Section 11(a) of the Income Tax Act 58 of 1962 entitles taxpayers to a deduction in respect of expenditure actually incurred, provided that all the other requirements of section 11 and section 23 of the Act have been met. A company may issue its own shares, credited as fully paid up, as a payment for trading stock or services rendered, as was the case in C:SARS v Labat Africa (2011) 74 SATC 1. The question that was raised by this decision is whether the issue of shares constitutes “expenditure” as contemplated in section 11(a) of the Act. It is trite that a share in a company is a bundle of rights which entitle the holder to dividends when declared and to a vote in shareholders’ meetings and that a share does not come into the hands of a shareholder by way of transfer from the company, but is rather created as a bundle of rights for him in the company. In C: SARS v Labat Africa, the Supreme Court of Appeal decided that to issue shares as a payment for goods is not expenditure as contemplated in section 11(a) of the Act. The Act does not define “expenditure”. It has been interpreted in certain cases as a payment of money or disbursement, while it has been interpreted as the undertaking of a legal obligation in other cases. The Labat Africa case has been criticised for its interpretation of expenditure on the grounds that it is contrary to the principle that “actually incurred” does not mean “actually paid”. This research has argued that, in the context of the Labat Africa case, which related to an issue of shares in payment for goods, Harms AP’s judgment was concerned with showing why a share issue is not expenditure. He could not have intended to deny a deduction to transactions such as credit purchases.
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Pillay, Neermala Neelavathy. "Assessed losses: the trade and income from trade requirements as set out in section 20 of the Income Tax Act of 1962." Thesis, Nelson Mandela Metropolitan University, 2012. http://hdl.handle.net/10948/1670.
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Section 20 of the Income Tax Act, No 58 of 1962 allows a taxpayer that incurs an assessed loss to carry forward the balance of assessed loss incurred, to be set off against taxable income earned in or added to losses incurred in future years. The issues regarding the carry forward of assessed losses in terms of section 20 is complex and in terms of the said section, a company is only entitled to set off its assessed loss from the previous year against its taxable income in the current year, if the taxpayer has carried on a trade during the current year and has derived income from that trade. Under the provisions of section 20(2A), a taxpayer other than a company can utilise an assessed loss even if no trading has been conducted. Assessed losses of natural persons, may however be ring-fenced. The aim of this treatise was twofold. Firstly it was to gain clarity on the „trade‟ and „income from trade‟ issues and secondly to compare South African legislation with that of Australia, with a view to recommending a change in our rules regarding the treatment of assessed losses in the context of companies. The critical lessons to be learned from the cases presented, is that liquidators, creditors and others must ensure that the company continues trading in order to x keep the assessed losses valid. Realisation of assets (including stock), and the collection of outstanding debts during liquidation does not constitute the carrying on of a trade in terms of s 20(1). The continuity of trade is an important element in regard to the carry forward of assessed losses to be utilised in the current and future years. Therefore it is important that a company carries on some activity that falls within the definition of trade. In the landmark case of SA Bazaars, it was held that a company did not have to trade continuously throughout the year to qualify for the set-off of the assessed loss or carry forward of the assessed loss, that is, to trade for say part of the year. The court however left open the issue of whether it was necessary to derive income from that trade. In order to clarify the issues regarding assessed losses, SARS issued Interpretation Note 33 granting taxpayers a concession in certain cases where a company has traded, but not derived income from that trade. But in ITC 1830, the court ruled that a company must trade and must derive income from that trade in order to carry forward its assessed loss, which effectively means that SARS cannot apply Interpretation Note 33. SARS does not have the authority to make concession which is contrary to the wording of the Act. xi In Australia, operating losses can be carried forward indefinitely to be set-off against future income, provided a company meets the more than 50% continuity of ownership test. Where the continuity test fails, losses can be deducted if the same business is carried on in the income year (the same business test). From the research conducted and in order to solve the issues surrounding the carry forward of assessed losses it was suggested that one of the following be adopted :- The method used in Australia for the carry forward of assessed losses., or A decision of the Supreme Court of Appeal is needed for a departure from the literal meaning of the words pertaining to the requirements regarding the carry forward of assessed losses. Furthermore, to clarify the definition of „income‟, as used in the context of s20, is it gross income less exempt income or taxable income?. If section 20 relates to taxable income, then an assessed loss will never be increased, which it is submitted, is not what the legislature intended. Section 20 ought to be revisited to eliminate any uncertainty about the income requirement and in the context in which the word „income‟ is used in that section.
Books on the topic "Tax accounting – Law and legislation – Australia"
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2
Gertzman, Stephen F. Federal tax accounting. 2nd ed. Boston: Warren Gorham Lamont, 1993.
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Lang, Michael B. Federal tax accounting. Newark, NJ: LexisNexis Matthew Bender, 2006.
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Gertzman, Stephen F. Federal tax accounting. 2nd ed. Boston: Warren Gorham Lamont, 1993.
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Incorporated, CCH. CCH presents tax accounting: Inventories. 2nd ed. United States]: CCH, 2000.
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Davenport, Charles. Tax accounting methods: Characteristics, adoptions, changes. Chicago, Ill: Commerce Clearing House, 1988.
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Understanding fringe benefits tax in Australia. North Ryde, N.S.W: CCH Australia, 1986.
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Polito, Anthony P. Accounting periods. [Washington, D.C.]: Tax Management Inc., 2006.
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