COUNTRY – BY – COUNTRY REPORTING: A NEW DIMENSION IN TAXPAYER COMPLIANCE OBLIGATIONS IN AUSTRALIA
Abstract
The G20/Organisation for Economic Co-operation and Development’s (OECD’s) Base Erosion and Profit Shifting Action Plan (BEPS Action Plan) aims to combat tax evasion through an effort to improve tax transparency and enhance the exchange of information and co-operation between tax authorities, governments and global entities. As part of the BEPS Action Plan’s recommendations on transfer pricing documentation, country-by-country reporting (CbCR) requirements have been introduced in many countries, including Australia. This paper analyses the Australian CbCR legislation and the impact of compliance requirements on large multinational consolidated groups in Australia. The paper reflects on CbCR issues that include and transcend the taxation sphere, such as general business reporting and corporate governance, as well as the consequences of failing to comply with CbCR obligations. The discussion underlines the need for a cohesive global cooperative effort involving tax authorities and taxpayers. It also raises the need for reporting entities to make the necessary governance adjustments in order to comply with the CbCR obligations, which will support the objectives outlined in the BEPS Action Plan.
JAT Volume 20, Issue 02, Article 3 – Marriott
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.
JAT Volume 20, Issue 02, Article 2 – Martin and O’Connell
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.