Volume 14, Issue 2 – Evans

REVIEWING THE REVIEWS: A COMPARISON OF RECENT TAX REVIEWS IN AUSTRALIA, THE UNITED KINGDOM AND NEW ZEALAND OR “A FUNNY THING HAPPENED ON THE WAY TO THE FORUM”

By Chris Evans

This article compares and contrasts the Australian Henry Review with major tax reviews that took place at about the same time in the United Kingdom (the Mirrlees Review) and New Zealand (the Tax Working Group Review). It suggests that the three countries share many cultural, social, economic and political traditions and institutions, but that this shared heritage does not necessarily extend to the realms of tax reviews and the possible roads to tax reform that the countries may tread. There are some similarities in aspects of the processes of tax review that have taken place in the three countries (though rather more differences), and all three countries also share a commitment to broadly similar principles underlying the recommendations made by each of the three reviews. But the specific proposals made by each of the reviews do not share much common ground. The differences are more apparent than any similarities that may occur, an outcome (in part at least) predicated upon the very different political, economic and fiscal imperatives prevailing in each of the three countries.

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Volume 14, Issue 2 – Ergas and Robson

REVENUE ALLOCATION UNDER THE MRRT: ECONOMIC ASPECTS

By Henry Ergas and Alex Robson

The Minerals Resources Rent Tax (MRRT) is intended to tax the rents properly attributed to minerals at the time and place of their extraction (ie at the mouth of the mine). However, mining operations involve a degree of vertical integration that in some cases extends from mine to port. We examine the approach adopted in the MRRT to allocating the resulting revenues as between the taxing point and the downstream operations and show that it both lacks economic rationale and is likely to distort build/buy decisions.

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Volume 14, Issue 1 – Maples

ONLINE SALES AND AUCTION SITES, ISOLATED TRANSACTIONS AND THE INCOME TAX ACT 2007 (NZ)

By Andrew Maples

In 2007, David Beckham was in New Zealand to play an exhibition football match. While in Wellington, he dined at Nando’s restaurant. Moments after finishing his meal a mystery diner swiped the football star’s scraps and cutlery. The items were subsequently listed for sale on online auction site Trade Me. This article considers whether profits derived by the enterprising diner from this isolated transaction may be assessable under the Income Tax Act 2007 (NZ). Specifically, the article focuses on the application of s CB 32 (Property obtained by theft), s CB 4 (Personal property acquired for purpose of disposal), and s CB 3 (Profit-making undertaking or scheme). The article concludes that the intrepid diner may be subject to tax on her profits under two of these provisions.

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