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JAT Volume 20, Issue 02, Article 3 – Marriott

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PURSUIT OF WHITE-COLLAR CRIME IN NEW ZEALAND

Abstract
This article examines Government funding and performance targets for three New Zealand agencies tasked with investigating different facets of white-collar crime. The agencies are: the tax authority, Inland Revenue; the Serious Fraud Office, which is responsible for investigation and prosecution of serious financial fraud; and the Financial Markets Authority, which is responsible for financial market regulation and enforcement of conduct.
The primary question asked in this study is: do we take white-collar crime seriously in New Zealand? Reference to funding provided to each agency, and selected performance measures, suggests not. Furthermore, when compared to other financial crime, such as benefit fraud, different patterns of funding are visible. The agencies responsible for protecting society from white-collar crime are poorly funded and key performance measures have been diluted in recent times. The issues raised are examined through the theoretical frames of deterrence theory and procedural justice.
It is well-established that white-collar criminals receive more lenient punishments for equivalent crimes. However, the results of this study suggest that they are further privileged as their crimes are less likely to be investigated and prosecuted. This is, at least in part, a result of limited resources available to the government agencies responsible for these tasks.

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JAT Volume 20, Issue 02, Article 2 – Martin and O’Connell

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CROWDFUNDING : WHAT ARE THE TAX ISSUES?

Abstract
This paper seeks to analyse the different tax issues that arise for each party to a crowdfunding arrangement. There are currently four main types of crowdfunding arrangements. These are commonly referred to as donation-based crowdfunding, reward-based crowdfunding, equity-based crowdfunding and debt-based crowdfunding. Each uses a different strategy to attract funding and each may have different tax consequences for the parties involved.
In addition to income tax issues, the authors discuss GST in the context of reward-based crowdfunding and highlight the different results that arise under GST due to the different criteria for determining whether an enterprise is being carried on for GST purposes as opposed to a business for income tax purposes. With regard to equity and debt-based crowdfunding the authors also point out some of the limitations that arise due to regulatory control.

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Volume 20, Issue 02, Article 1 – Grant and De Zwaan

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ASSESSING THE THRESHOLD OF THE DIVISION 293 CONTRIBUTIONS TAX

Abstract
There has been sustained criticism in recent years over the equity of Australia’s superannuation system tax concessions. While some tax concessions are considered necessary to incentivise retirement savings, the system post-2007 gave a greater benefit to those in higher tax brackets – people who would most likely save for their retirement regardless. The perceived inequity has prompted several reforms, including the introduction of the Division 293 tax. This tax, effective from the 2012-2013 income year, levies an additional 15 per cent contributions tax on high-income individuals. When originally introduced, the threshold for high-income was set at $300,000 per year, however recent legislative amendments have reduced this threshold to $250,000, and the Australian Labor Party has put forward a proposal to lower it even further to $200,000.
The purpose of this paper is to evaluate proposed thresholds for the additional 15 per cent tax on high-income earner concessional superannuation contributions contained in Division 293 of the Income Tax Assessment Act 1997 (Cth). We then investigate the effects of applying the Division 293 tax at different thresholds on the amount and distribution of contributions tax concessions. Finally, we determine at which threshold the Division 293 tax should be applied to best satisfy the proposed purpose of superannuation.

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