Diane Kraal

A Grounded Theory Approach to the Minerals Resource Rent Tax

Governments around the world are under constant pressure to reduce deficits and balance their national budgets. The previous heterodoxy of suggesting new or higher taxes has now become orthodoxy. A recent example is the returned Barack Obama administration, which is emboldened to the task of addressing ways to increase tax receipts. This study covers the period just prior to and immediately after the introduction of new tax legislation in Australia in an era of partisan, polarised politics. Four theories (grounded in data collected) provide explanations from contextual elements, conditions and events, all of which have an effect on the success of a new tax.The Minerals Resource Rent Tax (MRRT) took effect in July 2012. The MRRT is the subject of this qualitative research study, which utilises theories from an analysis of print media data relating to the tax. The study contributes to an understanding of the issues that require consideration when a new tax is implemented as well as the politics of tax policy. The findings have lessons for Australia as well as other jurisdictions when considering new tax legislation.

IFRS Adoption in ASEAN Countries: Perceptions of Professional Accountants from Singapore, Malaysia and Indonesia

Purpose - – The purpose of this paper is to examine the perceptions of professional accountants from three countries from the Association of South East Asian Nations (ASEAN) in order to evaluate their perceived benefits associated with the adoption of International Financial Reporting Standards (IFRS) in their respective nations as well as the implications of these standards for the accounting and auditing professions in their country of practice. It also explores the extent to which the adoption of IAS/IFRS accounting standards have been supported by the state, media and local professional accounting bodies. Design/methodology/approach - – The study uses survey approach to seek perceptions of professional accountants in these three countries with a view to understanding their perceptions regarding the socio-economic issues related to the adoption of the IFRS and role of social institutions. The study also uses appropriate statistical tests for interpretation of the data. Findings - – The analysis of the data shows that accounting professionals in Singapore, Malaysia and Indonesia strongly supported IFRS adoption; their opinions did not differ significantly by place of training, experience or professional qualifications. Respondents agreed that their countries benefited economically from harmonisation with global accounting standards. The surveyed accountants believed that pressure from international agencies was instrumental in the adoption of IFRS in the region. The findings also show that governments, the media and professional accounting bodies have supported the adoption, communication and application of IFRS. Originality/value - – This is the first study examining the role of social and professional institutions in the adoption of the IFRS and one which also provides an inter-country comparison of accountant’s perspectives on adoption of the IFRS among three ASEAN countries.

Australia's Petroleum Resource Rent Tax: Paul Keating, Peter Walsh and Other Game Changers

ABSTRACT It is now timely to examine the important area of the 1980s reform of petroleum resource taxation, about which there is scant analysis, compared to other Australian Labor Party reform initiatives from that era. The questions concern the roles of Paul Keating, as Treasurer and Peter Walsh, as Minister for Resources and Energy, in petroleum taxation reform. Bourdieu’s social practice theory is used to analyse the consultative process of resource rent tax policy to legislation, which culminated in the Petroleum Resource Rent Tax Assessment Act 1987. This Act introduced a tax on profits, over a specified threshold, generated from the sale of petroleum commodities. To revisit the story of the 1980s petroleum tax reform, this article draws on primary archival documents, predominantly from Craig Emerson’s private papers that cover his time (in 1984) with the Office of the Minister of Resources and Energy. Unique insights are obtained into the consultative process via his hand-written files and personal observations. The findings indicate that although Paul Keating, Bob Hawke and advisors such as Ross Garnaut played important roles, Peter Walsh should be given the most credit for progressing the petroleum resource tax policy in 1984, that later resulted in legislation in 1987.

Risks and Fiscal Concerns in the Extraction of Natural Resources: A Study of Transnational Corporations in Papua New Guinea

Transnational corporations (TNCs) dominate the extraction activities of high-value mineral resources in Papua New Guinea (PNG). The discussion covers how PNG’s scarcity of technical expertise and capital has affected its negotiating leverage with extractive industry TNCs. These TNCs have generally been in stronger positions when negotiating the fiscal terms of their operations with the PNG Government. This chapter investigates the risks and the fiscal challenges for TNCs operating in the natural resource sector in the host country of PNG. It examines the importance of fiscal negotiations for formal agreements between a host country, which is endowed with natural resources, and extractive TNCs. The chapter contextualizes the extraction activities and taxation of a developing country, and the impact of institutions, including agencies such as the International Monetary Fund and other global financial bodies on host country policies. Given the PNG record of poor fiscal outcomes and operational disasters from copper and gold mining, a key question of the chapter is, ‘will the current and significant natural gas project improve PNG’s tax revenues?’ Further, ‘are the recent and successful natural gas activities in PNG reflective of any initiatives for social and environment issues or changes in regulatory controls? Finally it asks, ‘what are the wider lessons from this case study for other extractive industry TNCs?

Legal teaching methods to diverse student cohorts: a comparison between the United Kingdom, the United States, Australia and New Zealand

Abstract This article makes a comparison across the unique educational settings of law and business schools in the United Kingdom, the United States, Australia and New Zealand to highlight differences in teaching methods necessary for culturally and ethnically mixed student cohorts derived from high migration, student mobility, higher education rankings and host governments promoting educational services. The approach of grounded theory is used, drawing data from instructor interviews and class observations of their teaching styles. While instructors from universities with higher numbers of international students are under pressure, the findings indicate there are positive consequences that result from these settings. Outcomes include experimentation in teaching methods, increases in the use of technology and more teacher training. There are concerns about English-language entry tests, a possible reputational risk for the higher education industry. This research contributes to the debate on changes in teaching methods that result from student mobility towards English-medium universities.

Finally, a Goods and Services Tax for Malaysia: A Comparison to Australia's GST Experience

Malaysia had two attempts since 2005 to introduce a consumption tax, and on the third and finally successful attempt, its Goods and Services Tax Act 2014 took effect from April 2015. Similarly, Australia’s path to a broad‑based consumption tax was hard fought, with three attempts to 1981 by then Coalition Treasurer, John Howard. The next proposal in 1985 by Paul Keating as Federal Treasurer failed through lack of internal party support and an unconvincing argument of tax efficiency over regressivity. The 1993 attempt by then Federal Opposition leader, John Hewson had a goods and services tax (GST) on the party platform, but he failed to win over the electorate. Australia’s GST was finally implemented by the Howard Government in 2000.This article concerns an investigation into Malaysia’s recent introduction of a GST and seeks some answers to explain the issues delaying its previous attempts. Australia’s GST experiences from 1985 to 2000 are compared to Malaysia’s delayed introduction of the GST over the period 2005 to 2014 and its implementation in 2015. The focus, in particular, is on two issues underpinning the delays: tax architecture and GST educational support. Comparative data is sourced from academic journals, Malaysia’s mainstream newspapers and online commentaries. Findings suggest that a key factor for Malaysia’s delayed GST includes flawed tax architecture, as income tax rates were pre‑emptively lowered in anticipation of the passage of the second, failed attempt in 2009 at passing a GST Bill through the Malaysian Parliament. By contrast, Australia’s tax architecture was not compromised in the same way as cuts to income tax rates and its new GST regime were legislated concurrently for commencement in 2000. Further, concerns raised by the Malaysian electorate indicate that clearly targeted GST educational programs are necessary for the continuance of effective implementation.