Journal articles on the topic 'Tax accounting – Law and legislation – Australia'
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1
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.
2
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.
11
Wright, Kathleen K., Stewart S. Karlinsky, and Kim A. Tarantino. "Lord of the Rings Impact on Federal and State Film Industry Tax Incentives and Their Tax Treatment." ATA Journal of Legal Tax Research 7, no. 1 (January 1, 2009): 57–75. http://dx.doi.org/10.2308/jltr.2009.7.1.57.
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ABSTRACT: This article discusses recent developments for both federal and state tax purposes that directly impact the entertainment industry. For federal purposes, Congress has recently expanded the scope of the Section 181 and 199 deductions to allow more generous deductions, and in the case of Section 199 to relax the requirements which must be met to claim the deduction. The states seem to be in competition to “outdo” each other in enacting rebates or transferable credits to enhance the desirability of their states for film production. The tax treatment of these credits for both federal and state purposes is discussed, and the Appendix summarizes the provisions of these incentives on a state-by-state basis. The article concludes with a discussion of the effectiveness of this type of incentive legislation.
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Krever, Richard. "A Tax Policy Legacy: Tim Edgar's Contributions to Tax Scholarship and Tax Legislation." Canadian Tax Journal/Revue fiscale canadienne 68, no. 2 (July 2020): 517–37. http://dx.doi.org/10.32721/ctj.2020.68.2.sym.krever.
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Tim Edgar's passing in December 2016 dealt a severe blow to tax scholarship in Canada and globally, not to mention being a sad loss for this journal, to which he was a contributor for over three decades. Tim's books, journal articles, and book chapters spanned a wide spectrum of tax policy issues and have played a central role in helping policy makers, academics, and students understand some of the most conceptually and technically difficult areas of tax law. Tim's book on the taxation of financial arrangements, published by the Canadian Tax Foundation, is viewed by policy makers worldwide as the definitive authority on the subject, setting out a principled path to carving out the debt component of financial instruments and subjecting it to neutral accrual taxation. In a closely related area, his detailed analysis of the difficulties confronting policy makers who seek a neutral application of the goods and services tax (GST) to financial supplies is considered to be foundational work in the field, and his proposal to remove the tax from business-to-business supplies has been adopted directly in New Zealand and via an indirect mechanism in Singapore. Tim's work on the general anti-avoidance rule is cited time and again as a key treatment of the topic, while his proposal to extend thin capitalization rules to outbound investment has been adopted in Australia. Tim's comprehensive analysis of the Canadian pseudo-imputation system opens the door to a much-needed reconsideration of the system. The more challenging the subject matter, the deeper Tim investigated and methodically dissected the topic to arrive at reasoned recommendations for reform. Tim's work will continue to be read, cited, and applied in practice for many years.
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Wilkinson, Brett R., and Tracy J. Noga. "The Inequity of U.S. Estate Tax Consequences for Noncitizen Spouses and Expatriates and the Impact of the Proposed Exit Tax." ATA Journal of Legal Tax Research 5, no. 1 (January 1, 2007): 1–15. http://dx.doi.org/10.2308/jltr.2007.5.1.1.
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In most cases, U.S. estate tax law permits assets passed to a spouse on death to be excluded from the tax net via the operation of the marital tax deduction. For individuals with noncitizen spouses, however, the law denies the marital deduction unless the assets are placed in a qualified domestic trust. The purpose of this arrangement is to prevent assets being lost to the estate tax system due to repatriation by the noncitizen spouse. The additional compliance costs imposed on noncitizen spouses regardless of whether they repatriate, stands in stark contrast to the regime faced by U.S. citizens who elect to relinquish their citizenship. The alternative tax system imposed on such former-citizens offers considerable scope for both legitimate and illegitimate tax minimization. This paper proposes a greater alignment of these divergent systems, in light of the proposed exit tax legislation, both of which are designed to achieve the same objective of ensuring that wealth generated in the U.S. does not escape the estate tax net.
14
Pincus, Morton. "LEGISLATIVE HISTORY OF THE ALLOWANCE OF LIFO FOR TAX PURPOSES." Accounting Historians Journal 16, no. 1 (June 1, 1989): 23–55. http://dx.doi.org/10.2308/0148-4184.16.1.23.
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The legislative history of the allowance of LIFO for tax purposes is documented. The legislative process was structured around veto points of the law and yielded an examination of the political environment out of which the LIFO tax provisions emerged. LIFO provisions were analyzed relative to alternative tax options available to firms, administrative and judicial activities, overall tax legislation including tax rates, and general economic conditions. Production processes of firms lobbying for LIFO were examined and the views of academics and practitioners were incorporated. In addition to providing the basis for a regulatory event study by identifying the critical dates in the legsilative process, insight into the timing and choice of inventory accounting methods for financial reporting as well as for tax is gained.
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Chambers, Valrie, and Anthony P. Curatola. "Child Tax Credit in Divorced Families." ATA Journal of Legal Tax Research 7, no. 1 (January 1, 2009): 90–98. http://dx.doi.org/10.2308/jltr.2009.7.1.90.
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ABSTRACT: For more than 50 years, Congress has responded to the needs of families with various tax breaks ranging from exemptions, the adoption of Head of Household status, Child and Dependent Care Credit, increased Earned Income Credit (EIC) for those with dependent children, and the Child Tax Credit. With so many different tax breaks, tax planning for divorced parents has been dynamic and at times confusing. Part of the confusion originates from the intent of the special tax rules for divorced couples, divorce decrees, and federal income tax laws. This confusion was exacerbated with the passage of the Child Tax Credit, which is intended to aid parents in the cost of raising a child. Yet, Congress tied the tax credit to the dependency exemption and not to the person who actually cares for the child of divorced or separated parents. Although Congress has tinkered with this policy over the past few years, they still have failed to fix the problem. In fact, we contend that this latest round of legislation has increased the likelihood of additional litigation between former spouses.
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SAJEEWANI, DISNA, MAHINDA SIRIWARDANA, and JUDITH MCNEILL. "HOUSEHOLD DISTRIBUTIONAL AND REVENUE RECYCLING EFFECTS OF THE CARBON PRICE IN AUSTRALIA." Climate Change Economics 06, no. 03 (July 9, 2015): 1550012. http://dx.doi.org/10.1142/s2010007815500128.
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The Australian Government introduced a carbon tax from 1 July 2012. The then opposition party leader, now Prime Minister, introduced legislation to repeal the tax. Amongst the many issues being debated is that of the incidence of the tax. In this study, we explore household consumption and income changes arising from a A$23 carbon price employing a computable general equilibrium model (entitled A3E-G). The model has been calibrated using a social accounting matrix database of Australia with 10 household income groups. This carbon price generates A$6.39 billion revenue while reducing Australia's carbon emissions by 11%. The empirical evidence suggests household level impacts range from proportional to mildly progressive tax incidence. In this study, we propose four revenue recycling options to overcome any undesirable distributional effects from the carbon price. Results indicate that revenue recycling through income tax reductions and uniform lump sum transfers improves post tax income levels and welfare towards middle and high income groups. A nonuniform lump sum transferring option favors low income households. Uniform reductions in commodity tax rates are not found to be welfare improving but we find positive impacts on export competitiveness from this option.
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Khmelev, Sergey. "Problems of applying the principle of due diligence in the implementation of tax control in order to ensure the economic security of the enterprise." Russian Journal of Management 8, no. 4 (January 25, 2021): 51–55. http://dx.doi.org/10.29039/2409-6024-2020-8-4-51-55.
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The article deals with the problems of applying the principle of due diligence in the current activities of the organization in the implementation of tax control in order to ensure
the economic security of the enterprise in modern conditions of increasing the capabilities of information systems. Special attention is paid to the requirements of reliability of accounting and tax accounting. It is concluded that compliance with the strict requirements of the performance standards and innovations of Russian legislation on the tax records allows you to ensure the economic security of economic entity, for this purpose it is necessary to monitor the compliance of accounting policy for accounting purposes and for taxation purposes the requirements of the legislation of the Russian Federation on accounting and taxation, given the characteristics of economic activity of the enterprise. Emphasis is placed on the reliability of accounting and tax accounting. The principles of due diligence in the calculation of value added tax are important. It is stated that at present, there is no legally established definition of the principle of due diligence, which does not allow its extended interpretation by law enforcement agencies.
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Lewis, David. "Taxation aspects of climate change management measures." APPEA Journal 50, no. 1 (2010): 253. http://dx.doi.org/10.1071/aj09015.
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Climate change is undoubtedly one of the greatest economic, social, and environmental challenges now facing the world. The present Australian Government is committed to acting on climate change and Australia’s progress towards its emissions reduction targets is being closely watched internationally. To contribute effectively to global climate change action, Australia must demonstrate its ability to implement robust and sustainable domestic emissions management legislation. The Carbon Pollution Reduction Scheme (CPRS), modelled after the cap-and-trade system, continues to be debated by our policymakers, as the Government moves to re-introduce its preferred CPRS legislative package for the third time. The advent of climate change legislation is inevitable and its impact will be far-reaching. This paper reviews the fiscal aspects of the proposed CPRS legislation in the context of the oil and gas industry, and whether it is conducive to creating incentives for appropriate climate change response by the industry. In particular, this paper will consider: the direct and indirect tax features specifically covered in the proposed CPRS legislation and their implications; the areas of taxation that remain uncanvassed in the proposed CPRS legislation and aspects requiring clarification from the tax administration; the interaction between Petroleum Resource Rent Tax (PRRT) and the CPRS measures; the flow-on impacts to taxation outcomes resulting from proposed accounting and financial reporting responses to the CPRS legislation; the income tax and PRRT treatment of selected abatement measures; and, elements of a good CPRS tax strategy and compliance action plan.
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Lang, Teresa Kay, and Jan Richard Heier. "THE AIA'S SPECIAL BULLETIN SERIES AND ITS EARLY GUIDANCE ON TAX ISSUES RELATED TO DEPRECIATION, 1920–1929." Accounting Historians Journal 40, no. 1 (June 1, 2013): 51–77. http://dx.doi.org/10.2308/0148-4184.40.1.51.
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ABSTRACT When the final state ratified the 16th Amendment to the U.S. Constitution in 1913, levying taxes directly on individual incomes became a reality and opened up expanded taxation on businesses. For example, the supporting legislation allowed for the deduction of wear and tear on equipment as a business expense based on the service lives. Unfortunately for the tax preparer, there was no clear meaning of wear and tear and the interpretation of the of service lives in the legislation. With little or no guidance to CPA tax preparers and their clients, it was inevitable that Bureau of Internal Revenue examiners would question returns with such deductions. To help its members to understand better, the new law and the ever-increasing complexity of accounting issues related to it, the American Institute of Accountants began to publish the Special Bulletin Series in January 1920. Many of the answers present in the Bulletins between 1920 and 1929 solved accounting and tax problems in ways still used nearly a century later.
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Bratten, Brian, and David S. Hulse. "Retroactive Tax Legislation, Reported Earnings, and Investors' Responses to Earnings “Surprises”: Evidence from R&D Credit Extensions." Journal of the American Taxation Association 38, no. 2 (January 1, 2016): 87–109. http://dx.doi.org/10.2308/atax-51395.
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ABSTRACT When Congress retroactively extends a temporary tax rule, the effect on earnings is complex because financial reporting standards require firms to apply the integral method using enacted tax law to determine quarterly income tax expense. We model this effect and examine earnings announcements following retroactive extensions of the federal R&D tax credit to test how investors incorporate the effect into stock prices. We find that investors respond when earnings are announced, even though the effect could have been determined several weeks earlier. We also show that in recent years, the effects of retroactive extensions of the credit are a substantial part of the average decrease in effective tax rates (ETRs) from the third to fourth quarter for calendar-year firms. Our results have implications for investors and researchers examining earnings and ETRs around retroactive extensions of temporary tax rules and suggest that congressional delays and GAAP interact to produce unintended consequences. JEL Classifications: M41; M48; G14; H25. Data Availability: Data used in this study are available from the sources identified in the text.
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Carvalho, L. Nelson, and Bruno M. Salotti. "Adoption of IFRS in Brazil and the Consequences to Accounting Education." Issues in Accounting Education 28, no. 2 (December 1, 2012): 235–42. http://dx.doi.org/10.2308/iace-50373.
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ABSTRACT: Brazil is a rare case of a complete adoption of IFRS, not only for consolidated financial statements, but also for the individual ones. Very few countries dared to converge their accounting standards toward IFRS in the company-only financial statements, probably afraid of the tax or dividends impact. Brazil made the ambitious move, changing the Company law and altering the income tax legislation in such a way that a safe path was built to bridge from the old BR GAAP standards to IFRS.
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NIKOLAEVA, JEANNA. "POLICY ON LIABILITY FOR TAX CRIMES IN THE RUSSIAN FEDERATION AND ABROAD (COMPARATIVE ASPECT)." Sociopolitical sciences 10, no. 4 (September 30, 2020): 91–98. http://dx.doi.org/10.33693/2223-0092-2020-10-4-91-98.
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The publication analyzes the policy in the field of legal liability for tax crimes in the Russian Federation and the States with which the Russian Federation has stable economic ties - Germany, Spain, France, China, the States of the Eurasian economic Union and the Commonwealth of independent States. The study suggests that the policy of States that are economic partners of the Russian Federation demonstrates a more severe approach to non-fulfillment of tax obligations. As a result of the study of foreign legislation, no States have been identified that have more lenient sanctions for tax crimes. Legal regulation of legal liability for violation of tax legislation in comparison with Russian legislation is characterized by long periods of limitation for criminal liability. Criminal law prohibitions do not contain an imperative requirement to exempt a defaulter from criminal prosecution in the event of payment of arrears and other compensation accruals (with the exception of the republics of Kazakhstan and Uzbekistan). In contrast to the Russian Federation, most countries criminalize actions related to ignoring the obligation to maintain accounting records, hiding or destroying accounting documents (China, France, Spain, etc.). It is concluded that the Russian Federation is a less protected tax jurisdiction in comparison with the States with which it has economic ties. The existing imbalance of liability for violations of tax and fee legislation creates prerequisites for the use of Russian tax jurisdiction in unfair tax strategies. When determining the vector of Russian state policy in the sphere of liability for non-fulfillment of tax obligations, it is not advisable to ignore this significant circumstance.
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Wright, Kathleen K., and Stewart S. Karlinsky. "Taxes versus Fees: Lead Paint and LLCs." ATA Journal of Legal Tax Research 5, no. 1 (January 1, 2007): 57–78. http://dx.doi.org/10.2308/jltr.2007.5.1.57.
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This paper discusses the rather blurred distinction between fees and taxes, particularly for states like California where enactment of a tax requires a two-thirds vote while fees can be enacted with a simple majority. We discuss the California Supreme Court decision in Sinclair Paint wherein the Court adopted a broad definition of a fee. Many taxpayers feared that this would open the flood gates for enactment of fee legislation both in California and nationwide. We examine recent legislative and judicial trends in enactment of fee legislation and court interpretations following Sinclair Paint. The data shows that the Legislature is actively pursuing all types of fee legislation as budget dollars do not stretch far enough to cover program expenditures. Courts are continuing the Sinclair Paint trend of broadly defining fees. The result seems to be an ever increasing fee burden on businesses and taxpayers.
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Flesher, Tonya K., and Tina Steward Quinn. "Codification of the Economic Substance Doctrine and the Gregory Case." ATA Journal of Legal Tax Research 12, no. 1 (February 1, 2014): 1–16. http://dx.doi.org/10.2308/jltr-50739.
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ABSTRACT Gregory v. Helvering is a landmark case in the area of corporate reorganizations. The concepts that evolved from Gregory include the business purpose test, continuity of business, the taxpayer's right to minimize tax liability, step transaction doctrine, and the economic substance doctrine. The Treasury Department sought a codification of the economic substance doctrine as a necessary weapon to curb the growth of corporate tax shelters. While the doctrine had been part of the fabric of our tax system since Gregory, it had been eroded by some confusing and conflicting case law. In 2010 (the 75th anniversary of Gregory), Congress codified the economic substance rules. In order to understand this new legislation it is necessary to explore the long and grand history of the Gregory case as a backdrop for consideration of the merits and demerits of the codification of the economic substance doctrine.
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Vale, Juliana Pinhata Sanches do, and Sílvio Hiroshi Nakao. "Unconditional conservatism in Brazilian public companies and tax neutrality." Revista Contabilidade & Finanças 28, no. 74 (March 6, 2017): 197–212. http://dx.doi.org/10.1590/1808-057x201702450.
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ABSTRACT Law n. 11,638/2007 legitimized the International Financial Reporting Standards (IFRS) adoption process in Brazil and introduced an accounting system detached from tax purposes in the country. This law aims to reduce the influence of tax law on accounting standards and improve the quality of financial reporting, as IFRS are considered to be higher quality standards. International literature shows a reduction in earnings quality in environments where accounting and tax rules are strongly linked. Moreover, the influence of tax legislation on financial accounting is seen to encourage unconditional conservatism, a bias with no advantages for financial market efficiency. Thus, tax neutrality is expected to provide a more favorable institutional environment for quality financial reporting by detaching corporate accounting from tax accounting. In light of the above, this study aims to verify whether the advent of tax neutrality influences unconditional conservatism in Brazilian public companies. The methodology used involves panel data regressions. The sample consists of non-financial publicly-traded companies with information published in Economática® covering 2002 to 2014. The results show differences in the relationship between taxation and financial reporting between firms that are subject to different levels of monitoring in the Brazilian stock market. Evidence of unconditional conservatism is only found in companies that are subject to greater market monitoring. In this group, it is observed that taxation does not induce unconditional conservatism in reported earnings, which is expected in a tax neutrality context.
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Getman, V. G. "The Relevance of Improving the Legal Framework for Penal Sanctions and Their Accounting." Economics, taxes & law 12, no. 1 (March 12, 2019): 120–26. http://dx.doi.org/10.26794/1999-849x-2019-12-1-120-126.
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The subject of the researchis the procedure for imposing penalties on business entities.The relevanceof the paper lies in the fact that nowadays there is an urgent need to streamline the current legislation in the part of establishing the responsibility of organizations for breach of tax legislation, especially for lesser breaches punishable by minor fines usually appealed against by organizations involved thereby overloading the work of courts.The purpose of the researchwas critical assessment of individual legislative provisions relating to the imposition of minor fines on legal entities doing business in disputable situations, cases of which are often brought on to courts on the initiative of the heads of organizations. Judicial practice on them is not uniform. Regarding identical cases, some district arbitration courts decide in favor of business entities, while others support claims of tax authorities. Nor is the Russian Ministry of Finance always consistent in explanations on these issues in its official letters. In a number of cases, they happened to change their point of view regarding the fine imposing procedure for a quite opposed position. Therefore, there is a need to clarify certain rules of imposing fines on legal entities following the results of a field tax audit as well as for breach of contractual obligations.It is concludedthat the current tax legislation is imperfect in the part of imposition of penal sanctions. It is proposed to introduce a special provision about the penalty charged on the management of legal entities who loose disputable law breach cases in court followed by imposition of a minor fine. The procedure for accounting fines, penalties for breach of contractual obligations in corporate tax calculations is considered and its shortcomings are revealed. A new procedure for the accounting of penalties is proposed.
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Alexander, Raquel Meyer, and LeAnn Luna. "State-Sponsored College §529 Plans: An Analysis of Factors that Influence Investors' Choice." Journal of the American Taxation Association 27, s-1 (January 1, 2005): 29–50. http://dx.doi.org/10.2308/jata.2005.27.s-1.29.
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Taxpayers have invested more than $45 billion in state-sponsored §529 college savings plans. Created by federal legislation in 1996 and enhanced by a 2001 tax law change, all 50 states and the District of Columbia now offer a §529 plan. Some states provide tax deductions and/or exemptions to taxpayers choosing in-state plans. Because of the lack of historical return data on these funds and the absence of comparable investment vehicles, investors rely extensively upon securities dealers for fund recommendations. Using proprietary panel data for 77 plans in 50 states over eight quarters, this paper compares tax and nontax factors that drive §529 investment choices. This paper explains why an investor may choose an out-of-state §529 plan despite losing a potential state tax deduction. This paper also has policy implications for lifetime savings accounts proposed by the Bush administration.
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Beebeejaun, Ambareen. "The Anti-Avoidance Provisions of the Mauritius Income Tax Act 1995." International Journal of Law and Management 60, no. 5 (September 10, 2018): 1223–32. http://dx.doi.org/10.1108/ijlma-07-2017-0174.
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Purpose A taxpayer who gets caught under Part VII of the Mauritius Income Tax Act is subjected to a corrective measure only in the form of payment of the amount of tax that would have been due in the absence of the avoidance arrangement, but the consequences set out in the same section do not result in any disincentive to the taxpayer that would ensure the prevention of the occurrence of such type of anti-avoidance practices in the future. This study aims to investigate the effectiveness of the anti-avoidance provisions in the Mauritius legislation as a weapon against impermissible tax avoidance, and the study also intends to critically analyse the remedies available against taxpayers who enter into impermissible tax avoidance transactions. Design/methodology/approach The methodology adopted for this qualitative study consists of a critical analysis and comparative legal review of the relevant legislation, case laws and literature. The anti-avoidance provisions of the Mauritius legislation will be compared with similar provisions of legislations of countries that have rigid preventive rules for anti-avoidance practices, and the selected countries are the UK and Australia because each country has been successful in diminishing the tax avoidances practices further to the imposition of penalties for impermissible tax avoidance. The black letter approach will also be used through which existing legal provisions, judicial doctrines, scholar articles and budget speeches governing anti-avoidance provisions for each country identified will be analysed. Findings Further to an analysis of the substantial differences between Mauritius anti-avoidance legal provisions and those of the UK and Australia, it is found that the backing of corrective actions by penalties act as a disincentive to prohibit impermissible anti-avoidance practices. The study concludes that, where there is abuse of law, the law needs to provide for penalties that must be suffered by the abuser, and hence, the study calls for an amendment in the Mauritius Income Tax Act to strengthen anti-avoidance provisions, by adopting similar provisions of the laws of Australia and the UK. Originality/value At present, there is no Mauritius literature on the researched topic, and this study will be one of the first academic writings on the subject of penalties for impermissible tax avoidance in Mauritius. The study is a new and unique topic in Mauritius, and for that reason, the study will largely rely on foreign sources that deal with penalties for impermissible tax avoidance, and this will include the Australian Taxation Administrative Act 1953, Australian case laws and the UK Finance Act 2016. This study is being carried out with the view to provide insightful recommendations to the stakeholders concerned in Mauritius to enhance the revenue collection avenues and methodologies for the Mauritius revenue authorities.
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Svirák, Pavel, and Karel Brychta. "Intangible asset tax depreciation in the Czech Republic." Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis 59, no. 7 (2011): 527–40. http://dx.doi.org/10.11118/actaun201159070527.
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This paper aims to familiarize readers with the legislative development of intangible asset tax depreciation in the Czech Republic since 1993. The paper is divided into several basic chapters, of which the main chapter describes and analyzes the development of legislation in three thus-existing legal modes regulating intangible asset tax depreciation (the periods 1993–2000; 2001–2004; 2004–2011). A separate sub-chapter deals with each of these three modes, which fundamentally differ in the concept of determining tax depreciations. For better clarity, changes in the legislation in question are described using tables. Over the first mentioned mode, i.e. the mode valid for assets acquired in the period 1993–2000, intangible asset tax depreciations were determined by the same manner as tangible asset tax depreciations. This period is characterized by gradual establishment (specification) of legislation that may be partially attributed to the stormy development of social conditions and the need for them to be reflected in law. For the period 2001–2003, standard amendments were contained in accounting regulations. The Income Tax Act (hereinafter ITA) did not contain an amendment of intangible assets and its depreciations. It merely determined that accounting depreciations of intangible assets were a tax expense. Nevertheless, changes also occurred in this short time period, which this paper will later address. Effective from 2004, legislation on intangible assets and their tax depreciations returned to the ITA. Changes came in this mode of determining depreciations as well; nevertheless, one may consider the current legislative regulation to be stabilized. Later in this paper for the selected category of intangible assets (software), the authors describe and assess the dependence of the portion of the entry price entering tax expenses in the form of tax depreciations on the year of acquiring intangible assets. To achieve the stated objectives, the comparative method was applied (used mainly to describe and assess how legislation developed) and the modeling method (establishing models describing the impact of legislative regulation on the tax expenses of taxpayers). When elaborating this paper, the authors also chose to use so-called paired logic methods.
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Clausing, Kimberly A. "Profit Shifting before and after the Tax Cuts and Jobs Act." National Tax Journal 73, no. 4 (December 1, 2020): 1233–66. http://dx.doi.org/10.17310/ntj.2020.4.14.
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In recent years, profit shifting by multinational companies (MNCs) has generated substantial revenue costs to the U.S. government. The Tax Cuts and Jobs Act (TCJA) changed U.S. international tax law in several important ways. This paper discusses the nature of these changes and their possible effects on profit shifting. The paper also evaluates the effects of the global intangible low-taxed income (GILTI) tax on the location of taxable profits. Once company adjustment to the legislation is complete, estimates suggest that the GILTI tax will reduce the corporate profits of U.S. multinational affiliates in haven countries by about 12-16 percent, modestly increasing the tax base in both the United States and in higher-tax foreign countries. However, a per-country minimum tax would generate much larger increases in the U.S. tax base; a per-country tax at the same rate reduces haven profits by 23-31 percent, resulting in larger gains in U.S. tax revenue.
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Harris, David G., and Jane R. Livingstone. "Federal Tax Legislation as an Implicit Contracting Cost Benchmark: The Definition of Excessive Executive Compensation." Accounting Review 77, no. 4 (October 1, 2002): 997–1018. http://dx.doi.org/10.2308/accr.2002.77.4.997.
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We examine how tax legislation that restricted firms' deductions of CEO compensation above $1 million reduced the implicit contracting cost of compensation for firms that were expected to pay below that amount and that were not directly affected by the law change. We find that firms that expected to pay their CEOs less than $1 million actually increased their CEOs' cash compensation, contrary to Congress's expectations. Moreover, the magnitude of the unexpected increase in compensation is proportional to how far the CEO's expected compensation fell below Congress's new $1 million reasonable-compensation standard. Thus, our study provides evidence that some of the largest U.S. corporations responded in a manner contrary to policymakers' expectations. Our findings also support the theory of implicit contracting costs, by demonstrating that many firms reacted in an economically rational fashion when a change in the tax law decreased their implicit costs of CEO compensation.
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Shkulipa, Liudmyla. "METHODS FOR DETERMINING TAX INCOME IN ACCORDANCE WITH NATIONAL LAW AND IAS 12 “INCOME TAXES”." Economic Analysis, no. 30(4) (2020): 182–94. http://dx.doi.org/10.35774/econa2020.04.182.
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Introduction. A profit is one of the most important indicators of the financial performance of business entities, as it is a source of financing the costs of their production and social development. The part of the income is withdrawn by the state as an income tax and a source of funding for public expenditure. The understanding of the correct methodology for determining tax profit in accordance with applicable national law and IAS 12 "Income Taxes" is being the most often interest of the accountants and practitioners. Purpose. The purpose of the article is to investigate the methodology for determining tax income in accordance with the Tax Code of Ukraine and national accounting standards. The regulatory approach to research allows for the identification of differences in the regulation of this research object at the national level and in accordance with IAS 12 “Income Taxes”. Methods. To achieve this goal, common scientific methods, both at the empirical and theoretical levels of research were used. The methods of analysis to compare the methodology for determining tax income in accordance with the Tax Code of Ukraine and the corresponding national accounting standard were used. Modeling and abstraction techniques to address the various situations associated with the reflection of income tax by businesses of different ownership were used. Results. The article describes a new methodology for determining taxable income in accordance with the rules of national legislation and gives a critical analysis of new changes in the Tax Code of Ukraine. There are two options for finding a business entity on the general tax system; regular correspondence on accounting for income tax on ordinary activities have been clarified. For the first time the method of determining tax profit (loss) according to the Tax Code of Ukraine and national standards has been compared; the composition of information on the main components of income tax expense and information subject to separate disclosure under IAS 12 “Income Taxes” has been systematized. The snippet of the Income tax declaration on the decision not to apply tax differences is given. Discussion. To increase the level of objectivity and materiality of the information on tax profit presentation presented in the financial statements, it is necessary to search for trade-offs between accounting and tax concepts within a common ideology. The results have shown that tax changes are not always made public in the proper explanation and are being challenged by users (accountants) who have different interests. The consideration of the method for determining tax income allows us to argue that the international standards more broadly define the criteria for recognizing and reflecting in the financial statement current income tax.
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Shukarasi, Valbona. "The New Albanian Company Law a Serious Effort for the Implementation of Europian Standards of Law on Commercial Company." European Journal of Economics and Business Studies 2, no. 1 (August 30, 2015): 205. http://dx.doi.org/10.26417/ejes.v2i1.p205-211.
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Albanian Company law has changed profoundly in recent time. These changes have not merely been limited to technical issues, but amount to a revolution in core areas of the Albanian company law framework. To a large extent, these changes were driven by the Stabilisation and Association Agreement between Albanian and The European Union, aiming inter alia at the approximation of Albania’s existing legislation to the Community acquis. Given the objective to bring Albanian law in line with European Union requirements on company law, it is not a big surprise that the legislator assisted by international experts essentially decided to design a new company law “from scratch” rather than modifying the existing Albanian legal framework. After all, the peviously on companies followed a very different approach than most of the Member States’systems which served as the basis for the Community legislation in this area. Rewriting a whole company law system undoubtedly is a very ambitious task, as each country’s legal and economic environment has its very own specifics; additionally, company law always interects intensively with different areas of legislation (e.g. accounting, tax and securities laws).
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Killian, Sheila, Stewart S. Karlinsky, Garry Payne, and Jackie Arendse. "Mixed Blessing of Being Designated a Small Business: A Four Country Comparison." ATA Journal of Legal Tax Research 5, no. 1 (January 1, 2007): 16–34. http://dx.doi.org/10.2308/jltr.2007.5.1.16.
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This article will focus on how four countries' income tax laws define a small business and how the taxing authorities and legislators attempt to prevent small business definitions from being exploited by potentially unintended users or for unintended purposes. We will use the experiences from four diverse countries (Australia, Ireland, South Africa, and the U.S.), which take their roots from the same legal system (England) to see if there are best practices that can be adapted for these and other countries as well. A fundamental question that arises when discussing tax incentives and disincentives for small business is why carve out special provisions for this segment of the business community? The answer, as discussed below, is two fold: one, the economic benefits that small business yields the economy is material and significant; two, economies of scale as to both regulatory (including tax) compliance costs as well as costs of goods and materials warrant incentives to level the playing field with large businesses.
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JAMES, SIMON, and IAN WALLSCHUTZKY. "Tax Law Improvement in Australia and the UK: The Need for a Strategy for Simplification." Fiscal Studies 18, no. 4 (November 1997): 445–60. http://dx.doi.org/10.1111/j.1475-5890.1997.tb00273.x.
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Durant, Monique O. "The Federal-State Tempest of Medical Marijuana Taxation: Seeking a Bridge over Troubled Waters." ATA Journal of Legal Tax Research 13, no. 2 (April 1, 2015): 1–38. http://dx.doi.org/10.2308/jltr-51132.
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ABSTRACT Presently, federal income taxation of medical marijuana is the same as for cocaine or heroin; the only permitted adjustment to gross revenues in calculating federal taxable income is cost of goods sold. Where medical marijuana has been legalized, however, state income taxation falls primarily into two groups, with some states permitting nonprofit treatment of dispensaries for state purposes, although they will not receive such treatment for federal tax purposes. Other states make no requirement of nonprofit status, such that state taxation of these enterprises generally follows federal treatment. This disparity in federal-state taxation, although simply stated, has earth-shaking economic implications to the producers, distributors, and users of medical marijuana. Despite recent developments, a potentially extreme federalism problem remains; one that has been characterized as a “war” between the federal government and some states over medical marijuana policy. This “war” has two fronts, due to the way the federal tax code controlling marijuana is drafted. One front concerns the criminalization of medical marijuana operations nationally, and a second front concerns federal income taxation of these same enterprises. As additional states continue to legalize marijuana for medical purposes, the federalism issues continues to loom large. This paper discusses the federalism issues resulting from this unique legal conflict and the need for federal legislation.
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Carminati, Lara. "Between ethics and law." Society and Business Review 14, no. 1 (February 11, 2019): 2–11. http://dx.doi.org/10.1108/sbr-04-2018-0032.
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PurposeThe purpose of this paper is to offer a critical and broad perspective on how transnational companies (TNCs) behave in the global context, focussing its attention on the controversial issue of tax avoidance in the UK. It pursues this aim by taking into account not only economic globalisation, mobility of capital and tax havens but also ethics and corporate social responsibility.Design/methodology/approachThis paper seeks to provide an interdisciplinary viewpoint drawing not only from well-established scholarly literature but also from real cases and evidence, such as the scandals involving corporate giants, such as Starbucks, Google and Amazon in the UK.FindingsThis paper highlights the fundamental interplay and mutual aid of ethics and international laws, underlining the increasing importance of corporate social responsibility principles in today’s business practices. However, it also emphasises the need of reinforcing these principles with either regional or universalistic legal approaches to tackle TNCs’ misconduct in the international arena.Practical implicationsThis paper suggests that by establishing and enforcing international business laws, increasingly aligned with ethical principles, the gap between ethics and legislation can be consistently bridged. Hence, TNCs’ behaviour could be more efficiently controlled.Originality/valueThe paper contributes to the literature on modern economic globalisation by providing a comprehensive and integrative perspective on TNCs’ behaviour, accounting for the interplay of socio-ethical, legal and business principles.
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ZHUK, OLHA, and ANTONINA TOMASHEVSKA. "TAX PLANNING IN THE ENTERPRISE MANAGEMENT SYSTEM." Journal of Vasyl Stefanyk Precarpathian National University 6, no. 3-4 (December 20, 2019): 96–102. http://dx.doi.org/10.15330/jpnu.6.3-4.96-102.
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The differences between the concepts of “tax planning”, “tax minimization” and “tax optimization” are investigated and it is established that tax minimization is the maximum reduction of all taxes, tax optimization is the achievement of a proportion between all aspects of an entity's activity; tax planning The system of measures of the enterprise is directed to the maximum use of the current legislation for the purpose of legal optimization of payments. It has been determined that the ways to reduce the tax burden include tax benefits, preferential taxation and the possibility of choosing a simplified system of taxation by small business entities. The levels and requirements to be followed in tax planning are identified and substantiated: organization of accounting and tax accounting, examine tax law, determine the list of benefits, correct accrual and timely payment, using legal methods to reduce the tax burden.
The methods which are applied in tax planning are substantiated: current internal control, preliminary tax examination, comparative analysis.
It is determined that tax planning is influenced by certain factors: the sphere of the activity in which the entity operates, the types of activity it is engaged in; status of belonging to a legal or natural person; the purpose of tax planning and the possibility of applying tax benefits. The tax planning system should be formed in accordance with principles: compliance with tax law; justification of the feasibility of applying the tax system; prompt response to changes in tax law; use of tax planning methods; use favorable tax regimes. Tax planning spends efforts on the following functions: analytical, accumulation, distribution, control.
It is established that the assessment of the effectiveness of the enterprise tax policy should be made through a system of indicators: the level of tax burden on the enterprise; the level of influence of tax planning on the magnitude of the enterprise's tax liabilities and the effectiveness of the enterprise's tax planning and tax policy in general. Effectively organized tax policy at the enterprise will help improve the results of the enterprise. Tax planning should be an integral part of the overall planning of the enterprise.
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Bosankić, Dragan. "Tax and legal treatment of hybrid financial instruments." Anali Pravnog fakulteta u Beogradu, no. 2/2018 (July 14, 2018): 244–61. http://dx.doi.org/10.51204/anali_pfub_18210a.
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Besides the motives not prevailingly concerning the tax, hybrid financial instruments are used both in the context of one tax system, and particularly in the international scenario, aiming at tax savings generation. Depending on whether the participants in the transaction are taxpayers within the same tax system, or not, the paper analyses the tax and legal consequences of the classification of hybrid financial instruments. Special attention has been paid to the tax and legal treatment of hybrid financial instruments in the Serbian taxation legislation, in which, for taxation purposes, there is no possibility of different classification in relation to the way it has been done in terms of company law and accounting. This drawback in Serbian taxation legislative on the one hand opens the possibility for tax planning by using hybrid financial instruments, while on the other hand it is an area that should be specifically regulated. In addition, in terms of the international scenario, using a comparative method, the paper analyses the rules for the classification of hybrid financial instruments defined by OECD-Model convention and the relevant EU directives.
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Edwards, Courtney H., Mark H. Lang, Edward L. Maydew, and Douglas A. Shackelford. "Germany's Repeal of the Corporate Capital Gains Tax: The Equity Market Response." Journal of the American Taxation Association 26, s-1 (January 1, 2004): 73–97. http://dx.doi.org/10.2308/jata.2004.26.s-1.73.
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In late 1999, the German government made a surprise announcement that it would repeal the large and long-standing capital gains tax on sales of corporate crossholdings effective in 2002. The repeal has been hailed as a revolutionary step toward breaking up the extensive web of crossholdings among German companies. The lock-in effect from the large corporate capital gains tax was said to act as a barrier to efficient acquisition and divestiture of German firms and divisions. Many observers predicted that once the lock-in effect was removed, Germany would experience a flurry of acquisition and divestiture activity. Several other industrialized countries were poised to follow suit, with similar proposals pending in France, Japan, and the United Kingdom. This paper provides evidence of the economic impact of the repeal by examining its effect on the market values of German firms. While event studies of tax legislation can be difficult, our study is aided by the fact that the repeal was both a surprise and was announced separately from other tax reform proposals. In addition, we provide cross-sectional evidence on the economic magnitude of the repeal, assess the likely beneficiaries from the repeal, and predict which sectors are most likely to experience a surge in acquisition and divestiture activity following the repeal. Our results suggest that the economic effects are highly concentrated. We find a positive association between firms' event period abnormal returns and the extent of their crossholdings, consistent with taxes acting as a barrier to efficient allocation of ownership. However, the reaction is limited to the six largest banks and insurers and their extensive minority holdings in industrial firms. These six large firms have a combined market capitalization equal to 22 percent of all 394 firms in this study. We also find evidence of a positive stock price response to the announcement for industrial companies held by these financial firms, consistent with shareholders in those firms benefiting from the likely reduction in investor-level tax burdens and expected increased efficiency following the tax law change.
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Lee, Alvin, and Claire Lambert. "Corporate Social Responsibility in McDonald’s Australia." Asian Case Research Journal 21, no. 02 (December 2017): 393–430. http://dx.doi.org/10.1142/s0218927517500146.
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This case focuses on marketing public policy and legislation issues in the business environment. The Commonwealth Government of Australia wants to impose mandatory warning labels for fast-food served by quick-service chainrestaurants like McDonald’s. These warnings are to appear on fast-food packaging to warn diners of the possible harms arising from consuming fast-food. This is similar to the warnings that are used in Australia on tobacco product packages. This highlights a turning point where legislators appear to be heeding calls of vocal pressure groups to curb and legislate the industry’s activities. The loudest calls have appeared in well-publicized legal cases and film documentaries like Super-Size Me. McDonald’s has been well-aware of these challenges. The company continues to respond and fight legal challenges on these points. As a result, the company has improved its supply chain, employees’ work-conditions, their treatment of animals, their stores, food and customer service to offer leaner, healthier and more upmarket products. The few vocal critics who have secured media coverage seem to rely on sensationalizing the issue — e.g., eating McDonald’s for 30 days makes you fat. They seem to ignore the results from other experiments where people who ate suitable portions of McDonald’s food for the same 30 day period actually lost weight. Other challenges that have been found to be lies in courts of law include allegations of animal cruelty, unsafe food and food that makes people obese. Yet the public continue to believe these allegations. Can the industry do more, or do something different, to change people’s minds?
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Nikolaeva, Zhanna. "Criminological Features and Determination Specifics of Modern Tax Crimes." Russian Journal of Criminology 14, no. 5 (November 20, 2020): 710–22. http://dx.doi.org/10.17150/2500-4255.2020.14(5).710-722.
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The author analyzes statistical information on tax crimes, the causes of the fluctuation of their quantitative parameters, and the impact of the economic downturn on tax crimes. Data characterizing the personality of tax offenders are presented. Determinants of tax crimes are examined. The author studies data that reflect the impact of the economic downturn of 2015-2016 and the subsequent stabilization of the economy on the observance of tax obligations. The key determinants of tax crimes that constitute its causal complex are recognized to be self-interest, a desire to get excess profit, and a reluctance to conduct business using common rules. Modern tax crimes have features typical of «white collar» crimes: openness of committing crimes that are made to look like legitimate business activities; use of the intellectual potential of highly qualified specialists for the development and improvement of criminal tax strategies, protection of criminal actions against exposure and prosecution; considerable material damage from crimes; long-term character of criminal activities; focus on using the advantages connected with tax evasion in competition. The author analyzes the norm of legal liability for breach of the law on taxes and duties. It is noted that the gains of tax evasion are higher than the material losses that could be incurred if the fact is exposed. The bigger the amount of uncollected taxes, the less significant the criminal law punitive sanctions are in comparison with it. There is not risk of becoming a subject of criminal prosecution for ignoring the duty to obtain documentation for business activities, for hiding or destroying accounting documentation. The author shows that the insufficiency of criminal law measures of restraining legal deviations regarding tax obligations and the defects of normative legal regulation of legal liability for tax delicts become the determinants of tax crimes because they promote the idea of impunity. Besides, the drawbacks of legal liability for violating the legislation on taxes and duties create conditions for the self-determination of tax crimes and for the formation of shadow economy in the Russian Federation.
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Murray, J. H. "TAXATION OF FINANCIAL ARRANGEMENTS —FURTHER DEVELOPMENTS." APPEA Journal 47, no. 1 (2007): 443. http://dx.doi.org/10.1071/aj06035.
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On 3 January 2007 the Minister for Revenue and Assistant Treasurer Peter Dutton released revised exposure draft legislation and explanatory material in relation to the taxation of financial arrangements that would ‘reduce uncertainties and distortions’. Further Mr Dutton said that:‘The reforms will lead to lower costs for financial activities conducted by business and result in improved competitiveness and great efficiency in the general operation of Australia’s financial markets.’This release followed a previous exposure draft released for consultation purposes during December 2005. Many changes have arisen as a result of the consultation process and the current draft is a positive step in providing a comprehensive code to regulate this area. As with any proposal there remain issues that are uncertain; however, the Government is committed to the consultation in relation to the current draft.At a high level this legislation allows taxpayers to more closely align the tax treatment of financial arrangements to accounting treatment.The exposure draft is incomplete in that it does not contain rules to address the tax treatment of synthetic financial arrangements and Treasury has left open whether further integrity measures will be introduced.This paper seeks to outline the primary provisions proposed in the draft legislation and discuss in general terms what the changes may mean to companies operating in the oil and gas industry. Further, the paper recommends several steps that companies can take now to prepare themselves for the introduction of the law.
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Moore, R. K., and R. M. Willcocks. "SOME COMMERCIAL ASPECTS OF PETROLEUM EXPLORATION AND MINING." APPEA Journal 25, no. 1 (1985): 143. http://dx.doi.org/10.1071/aj84014.
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The petroleum industry in Australia is at the centre of a web of complex laws. In addition to the legislation under which petroleum exploration and production tenements are granted there is a multiplicity of statutes and regulations, Commonwealth and State, which have a direct bearing on the conduct of those involved in exploring for or exploiting Australia's petroleum reserves. For example, the level of participation by foreigners is governed by the Commonwealth Foreign Investment Guidelines and the Foreign Takeovers Act 1975; the Commonwealth has control over the export of petroleum under the Customs (Prohibited Exports) Regulations and domestic markets are subject to the operation of the Crude Oil Allocation Scheme. The Commonwealth continues to have the right to regulate the transfer of funds to and from Australia under the Banking (Foreign Exchange) Regulations. Certain States such as South Australia and New South Wales have their own foreign investment guidelines.Not only this, there are revenue laws which govern very much the way in which petroleum projects are organised, interests transferred and otherwise dealt with and finance made available, such as State stamp duty legislation, Commonwealth income tax laws, and Commonwealth legislation imposing registration fees on dealings in exploration permits and production licences. A new tax, Resource Rent Tax, is to be introduced.Then there are laws which have an indirect bearing on petroleum activities such as the Companies Code which, in addition to governing the administration and organisation of companies, controls the way funds can be raised.The statutory and regulatory framework is only part of the picture. The rights and obligations of participants in petroleum projects as between themselves are almost always set out in a joint venture or joint operating agreement, the combination between the participants being known as an unincorporated joint venture. This form of business organisation is not a partnership; it is not the creature of legislation. Indeed it has been rarely referred to in Acts of Parliament. Problems arising under the joint venture agreement will be considered against the backdrop of the general law which unfortunately has seldom been called upon to resolve disputes between participants in joint ventures. An illustration of one of these rare instances is Brian Pty Ltd v United Dominions Corporation Ltd (1983), where the New South Wales Court of Appeal considered the fiduciary relationship of joint venturers.Despite this legislative and regulatory' backdrop and the uncertainties as to the true effect of joint venture agreements, the industry up until quite recently has survived with little litigation. This is no longer the case. Recent and pending litigation shows that there is no reluctance on the part of participants to take their disputes to court, often at great expense and with unfortunate results for previously close relationships. It must now be said that money spent to achieve proper and clear agreement on organisational and legal matters at the earliest stage of a project is money just as well spent as that on drilling and other operational activities.
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Thottoli, Mohammed Muneerali. "Impact of Accounting Software among SMEs Accountants in Oman." Financial Markets, Institutions and Risks 4, no. 2 (2020): 25–33. http://dx.doi.org/10.21272/fmir.4(2).25-33.2020.
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Financial losses, bankruptcy and closure of the company may be the result of incorrect choice of accounting software, inefficient modernization of such software depending on the specifics of the economic entity and ignorance of technical knowledge of staffs to work with the software product. The paper notes that for companies from member countries of the Gulf Cooperation Council, the technique of implementation and application of tax legislation and International Financial Reporting Standards (IFRS) differs significantly from other countries. The article emphasizes that in Oman, companies need to prepare financial statements in accordance with current applicable IFRS, as well as the Law on Commercial Companies 2019 and the guidelines and requirements for disclosure of capital market information. The purpose of this paper is to study and study the impact of the implementation of accounting software among small and medium enterprises (SMEs) in Oman. The study systematizes the features and issues of assessing the relationship between generalized accounting software (GAS) and its use by accountants working for SMEs. Twenty small and medium business accountants were selected as the target audience, taking into account their experience and basic knowledge of accounting in the context of ownership and use of GAS. The study confirms and theoretically proves that the use of GAS in the financial and economic activities of SMEs has a significant impact on the practice of accountants working in such enterprises, ie, there is a positive and significant relationship between GAS choice and use of GAS by SME accountants. The results of this study can be useful for the government, representatives of tax authorities, higher education institutions in the context of establishing adequate policies regarding the use of software for accounting by economic entities. Keywords: Generalized accounting software, accounting, accountant, small and medium enterprises, international financial reporting standards (IFRS), Oman.
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KUZU, Serdar. "TRANSFER FİYATLAMA UYGULAMASININ İŞLETME PERFORMANSINA ETKİSİ VE VERGİSEL AÇIDAN DEĞERLENDİRİLMESİ THE IMPACT OF TRANSFER PRICING PRACTICE ON BUSINESS PERFORMANCE AND THE EVALUATION FROM THE TAX POINT." Business & Management Studies: An International Journal 1, no. 2 (January 15, 2014): 187. http://dx.doi.org/10.15295/bmij.v1i2.33.
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The size of international trade continues to extend rapidly from day to day as a result of the globalization process. This situation causes an increase in the economic activities of businesses in the trading area. One of the main objectives of the cost system applied in businesses is to be able to monitor the competitors and the changes that can be occured as a result of the developments in the sector. Thus, making cost accounting that is proper according to IAS / IFRS and tax legislation has become one of the strategic targets of the companies in most countries. In this respect, businesses should form their cost and pricing systems according to new regulations. Transfer pricing practice is usefull in setting the most proper price for goods that are subject to the transaction, in evaluating the performance of the responsibility centers of business, and in determining if the inter-departmental pricing system is consistent with targets of the business. The taxing powers of different countries and also the taxing powers of different institutions in a country did not overlap. Because of this reason, bringing new regulations to the tax system has become essential. The transfer pricing practice that has been incorporated into the Turkish Tax System is one of the these regulations. The transfer pricing practice which includes national and international transactions has been included in the Corporate Tax Law and Income Tax Law. The aim of this study is to analyse the impact of goods and services transfer that will occur between departments of businesses on the responsibility center and business performance, and also the impact of transfer pricing practice on the business performance on the basis of tax-related matters. As a result of the study, it can be said that transfer pricing practice has an impact on business performance in terms of both price and tax-related matters.
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KUZU, Serdar. "TRANSFER FİYATLAMA UYGULAMASININ İŞLETME PERFORMANSINA ETKİSİ VE VERGİSEL AÇIDAN DEĞERLENDİRİLMESİ." Business & Management Studies: An International Journal 1, no. 2 (January 15, 2014): 187. http://dx.doi.org/10.15295/bmij.v1i2.63.
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The size of international trade continues to extend rapidly from day to day as a result of the globalization process. This situation causes an increase in the economic activities of businesses in the trading area. One of the main objectives of the cost system applied in businesses is to be able to monitor the competitors and the changes that can be occured as a result of the developments in the sector. Thus, making cost accounting that is proper according to IAS / IFRS and tax legislation has become one of the strategic targets of the companies in most countries. In this respect, businesses should form their cost and pricing systems according to new regulations. Transfer pricing practice is usefull in setting the most proper price for goods that are subject to the transaction, in evaluating the performance of the responsibility centers of business, and in determining if the inter-departmental pricing system is consistent with targets of the business. The taxing powers of different countries and also the taxing powers of different institutions in a country did not overlap. Because of this reason, bringing new regulations to the tax system has become essential. The transfer pricing practice that has been incorporated into the Turkish Tax System is one of the these regulations. The transfer pricing practice which includes national and international transactions has been included in the Corporate Tax Law and Income Tax Law. The aim of this study is to analyse the impact of goods and services transfer that will occur between departments of businesses on the responsibility center and business performance, and also the impact of transfer pricing practice on the business performance on the basis of tax-related matters. As a result of the study, it can be said that transfer pricing practice has an impact on business performance in terms of both price and tax-related matters.
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Magro, Dalva, and Roberto Da Piedade Francisco. "A Public Policy based on fiscal incentives for supporting companies to Invest in Innovation Projects – The Law of Good." Journal of Innovation Management 5, no. 1 (May 18, 2017): 14–21. http://dx.doi.org/10.24840/2183-0606_005.001_0003.
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Creativity, technical knowledge and financial resources, whether public or private, are three very important subjects to encourage technological innovation. Public policies on fiscal incentives fostering the increase of investment of financial resources for RD&I projects are particularly needed in developing countries. Therefore, this article aims to inform about the legal and bureaucratic procedures for the execution of research projects developed by partnerships between a company and an Institute of Science and Technology (i.e. ICT) applying the incentives of Brazilian Federal Law No. 11,196/2005 - Law of Good. This letter describes all the legislation that supports such incentives and outlines the needed accounting procedures to be performed. As a result, a demonstration on research expenditures and the impact on the reduction of income taxes is performed regarding to the following Brazilian income taxes: Income Tax (i.e. IRPJ) and Contribution on Net Income (i.e. CSLL), levied to the Brazilian taxpayers.
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Zani, João, Eduardo Tomedi Leites, Clea Beatriz Macagnan, and Márcio Telles Portal. "Interest on equity and capital structure in the Brazilian context." International Journal of Managerial Finance 10, no. 1 (January 28, 2014): 39–53. http://dx.doi.org/10.1108/ijmf-08-2011-0068.
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Purpose – The interest paid on own capital can benefit companies in the Brazilian capital market as it can be considered a business expense and is, therefore, deductible as a corporate tax. The purpose of this paper is to assess the impact of interest on equity (IOE) on capital structure decisions. Design/methodology/approach – The initial sample consisted of 524 publicly traded companies from different industries in the Brazilian capital market that were listed on Bovespa. Companies in the finance, insurance and funds industries were excluded from the sample due to the unique features of these financial intermediaries. Some companies in the initial sample were excluded due to a lack of published data, inactivity during the sample period, etc. Thus, the paper excluded those companies that did not have valid observations or failed to publish them. The final sample included 370 companies and covered the nine-year period from 1998 through 2006. Findings – To this end, the authors identified the main determinants of capital structure and analyzed, through panel data, the relationship of IOE in addition to other determinants of capital structure, such as size, profitability, investment opportunities, risk, sales growth, real interest rate and real exchange rate, in corporate debt. The novel contribution of this study is the inclusion and analysis of the IOE in studies on the determination of capital structure of Brazilian companies. A new capital structure scenario was created when Law No. 9.249/95 required changes in legislation, ceasing the restatement of balance sheets and allowing companies to compensate their stockholders through IOE. Before this change, companies could only benefit from the tax benefits of debt, using debt capital. Now, they can also benefit from the use of equity because, by requiting equity through the IOE, deductions of income tax and social contributions on net income are allowed by tax law because the IOE may be considered a financial expense. Originality/value : The authors were not able to find any other publication of a similar study in a review of the extant empirical literature.
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Reid, Jean Margo. "LEGAL ACCEPTANCE OF ACCOUNTING PRINCIPLES IN GREAT BRITAIN AND THE UNITED STATES: SOME LESSONS FROM HISTORY." Accounting Historians Journal 15, no. 1 (March 1, 1988): 1–27. http://dx.doi.org/10.2308/0148-4184.15.1.1.
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This paper examines and contrasts nineteenth century case law in Great Britain and the United States in which courts had to decide whether to accept accounting concepts having to do with making provisions for depreciation, amortization and depletion. It should be emphasized that the courts were not arguing about accounting theory, per se; they were deciding particular disputes, which depended on the meaning in each case of pro its. By 1889, when Lee v. Neuchatel Asphalte Company was decided, British courts had rejected accepted fixed asset accounting conventions in determining profits in tax, dividend, and other cases while United States courts accepted these conventions, except in the case of wasting asset companies. This historical contrast is of particular interest because a recent reversal of these countries legal stances has occurred through legislation. In the United States, the Revised Model Business Corporation Act and the legislatures of several states have now rejected accounting concepts of profit as the legal test for dividends and other shareholder distributions. The reasons for this rejection appear to be similar to those used by the British Court of Appeal nearly 100 years ago. In Great Britain, on the other hand, the 1980 Companies Act reverses much of the Lee case and places on accountants new responsibilities for determining whether company distributions to shareholders would violate the capital maintenance provisions of the act.