Kerrie Sadiq

Tax Expenditure Management: A Critical Assessment

A tax expenditure is a ‘tax break’ allowed to a taxpayer or group of taxpayers, for example, by way of concession, deduction, deferral or exemption. The tax expenditure concept, as it was first identified, was designed to demonstrate the similarity between direct government spending on the one hand and spending through the tax system on the other. The identification of benefits provided through the tax system as tax expenditures allows analysts to consider the fiscal significance of those parts of the tax system which do not contribute to the primary purpose of raising revenue. Although a seemingly simple concept, it has generated a range of complex definitional and practical issues, and this book identifies and critically assesses the controversial aspects of tax expenditure and tax expenditure management.

‘Name and shame’ – director attendance disclosure and practice

ABSTRACT Three major director characteristics have been associated with board performance – independence, gender/gender diversity mix and multiple directorships. This study investigates the attendance practices of directors as a fourth director characteristic associated with director and board performance. It does so by investigating director attendance of listed companies where there is a full meeting attendance ‘roll-call’ disclosure regime, relative to a ‘brightline’ disclosure of attendance below 75%. Attendance data from Australia and the US are compared over the period 2001–2015. A comparison shows that Australian directors, on average, are 6 times more likely to attend fewer than 75% of their required board and committee meetings. This study provides previously undocumented analysis on the attendance practices of directors. The results have implications for the reporting framework of director attendance and suggest that in line with current regulatory thinking, a brightline approach has several policy advantages over a roll-call approach.

Field-level legitimization of corporate tax minimization

Since the recent Global Financial Crisis (GFC) attention on corporate fiscal contributions has grown substantially and discussion of the appropriateness of corporate tax practices is now part of the Corporate Social Responsibility (CSR) agenda (Hardeck & Hertl, 2014; Preuss, 2012; Sikka, 2010). The alleged irresponsibility of current corporate tax practices has been documented in the international press (e.g. The Economist, 2016) and some corporates have responded by disclosing tax contributions in their non-financial reports to show their positive impacts on society (PricewaterhouseCoopers, 2010). Such responses have been criticized as merely cosmetic attempts to cover up systematic irresponsibility that is manifested in the (ab)use of international tax loopholes (Ylonen & Laine, Forthcoming). Notwithstanding the value of these critiques, ‘day-to-day’ tax minimization remains unquestioned and is essentially regarded as good business practice (Brown, 2011). This might be the case because, as Dowling suggests, “the payment of tax is not viewed as socially responsible in the way that other CSR activities are” (2014: 8).

Developing Countries and the Automatic Exchange of Information Standard A 'OneeSizeeFitssAll' Solution?

Recently, the Organisation for Economic Co‑operation and Development (OECD), at the invitation of G20 countries, developed what it refers to as the new single global standard for the automatic exchange of information (AEOI) between key revenue authorities worldwide. This standard, if adopted by a country, would require the annual AEOI relating to financial accounts obtained from financial institutions and exchanged in a common reporting format or standard. Theoretically, the adoption of the AEOI standard on a global scale would equip all countries to address the illicit flow of money to locations which result in tax avoidance and other forms of non‑compliance. However, the success of the AEOI standard relies on countries to be able to first, collect and supply the information required and second, effectively use and benefit from the information provided to them. This means that such an adoption places an onerous administrative burden on a country and this is arguably especially the case for developing countries which do not have the same level of administrative resources and intellectual capital as developed countries.Studies have revealed that developing countries support the AEOI and view it as an opportunity to address illicit financial flows. However, the implementation of such a regime, according to the OECD, requires a sound legal framework, technical know‑how, infrastructure and personnel capacity. Consequently, developing countries are most concerned about the lack of capacity to: (1) collect the information locally to allow full reciprocal information exchange; (2) analyse the information received; and (3) deal with information technology. The purpose of this article is to critically analyse the OECD’s AEOI standard and assess the standard from the perspective of developing countries and emerging economies, including Global Forum members. It does so with the aim of revealing the “unique” administrative and enforcement issues which may arise for those countries and offering possible solutions. These possible solutions offered adopt a case study approach to the Asia‑Pacific region.

Unitary Taxation of the Finance Sector

international tax; unitary taxation; formulary apportionment; multinational banks; developing nations.

Emerging from the shadows: tax as a research discipline

More than ever, research is playing an important part in supporting proposed tax reforms and finding solutions to Australia’s tax system. Also, for tax academics the importance of quality research is critical in an increasingly competitive tertiary environment. However, life for an academic can be an isolating experience at time, especially if one’s expertise is in an area that many of their immediate colleagues do not share an interest in. Collegiately and the ability to be able to discuss research is seen as critical in fostering the next generation of academics. It is with this in mind that on the 5th of July 2010 the Inaugural Queensland Tax Teachers’ Symposium was hosted by Griffith University at its Southbank campus. The aim was to bring together for one day tax academics in Queensland, and further afield, to present their current research projects and encourage independent tax research. If was for this reason that the symposium was later re-named the Queensland Tax Researchers’ Symposium (QTRS) to reflect its emphasis. The Symposium has been held annually mid-year on four occasions with in excess of 120 attendees over this period. The fifth QTRS is planned for June 2014 to be hosted by James Cook University.

Tax Expenditure Management: Index

A tax expenditure is a ‘tax break’ allowed to a taxpayer or group of taxpayers, for example, by way of concession, deduction, deferral or exemption. The tax expenditure concept, as it was first identified, was designed to demonstrate the similarity between direct government spending on the one hand and spending through the tax system on the other. The identification of benefits provided through the tax system as tax expenditures allows analysts to consider the fiscal significance of those parts of the tax system which do not contribute to the primary purpose of raising revenue. Although a seemingly simple concept, it has generated a range of complex definitional and practical issues, and this book identifies and critically assesses the controversial aspects of tax expenditure and tax expenditure management.

Tax Expenditure Management: Frontmatter

A tax expenditure is a ‘tax break’ allowed to a taxpayer or group of taxpayers, for example, by way of concession, deduction, deferral or exemption. The tax expenditure concept, as it was first identified, was designed to demonstrate the similarity between direct government spending on the one hand and spending through the tax system on the other. The identification of benefits provided through the tax system as tax expenditures allows analysts to consider the fiscal significance of those parts of the tax system which do not contribute to the primary purpose of raising revenue. Although a seemingly simple concept, it has generated a range of complex definitional and practical issues, and this book identifies and critically assesses the controversial aspects of tax expenditure and tax expenditure management.