EDITORIAL
The 2022 issue of the Journal of Australian Taxation is contained in Volume 24 and consists
of five articles covering a wide range of taxation topics. The year 2022 was still a difficult
year with the COVID virus continuing to have an impact on those engaged in researching
taxation law. Many academics and practitioners were experiencing lockdown and related
fatigue. The Editor is grateful for the contribution made by the authors in this edition of the
journal, especially Professor Freudenberg for his ongoing support of this journal. Dr John
Minas from Curtin University has accepted a role as joint editor of the journal, and he will be
active in promoting the journal and encouraging tax academics to contribute in 2023 and
beyond.
The first article by Melissa Belle Isle, Brett Freudenberg and Tapan Sarker examined the
outcome of the data collected from 23 small business experts to understand in more depth
what aids or hinders an increase in small business owners (SBO) literacy. The article
provides a broad summary of the importance of the three literacies for small businesses,
namely the importance of cash flow management concerning the SBO’s literacy of financial
statements, computer accounting software (CAS), and business tax. The authors clearly
demonstrate through their research that these literacies are important in the management of
the cash flow of the business. The surveys explored what may aid or hinder the development
of these literacies for SBOs through the interview of small business experts. From these
interviews a number of key inhibitors were identified including time, lack of business
acumen, low training, cost, and the focus on producing business records for tax compliance
rather than management practices. From these findings, the authors were able to provide
recommendations that could assist SBOs to improve their understanding of these three
important areas.
The second article is written by Alexander Fullarton and Dale Pinto contend that the
Australian Taxation Office (ATO) practice of issuing opinions and taxation rulings for the
guidance of taxation practitioners compiling and submitting taxation returns does not always
result in greater clarity or certainty in the application of taxation laws. To illustrate that
argument the paper addresses the example wherein the ATO considers all animals used in a
business of primary production as trading stock. Their view is based on their interpretation of
the findings in the appeal case of Federal Commissioner of Taxation v Wade. The paper is
based on the Wade case which shows that the issue of how livestock should be treated for
taxation purposes may in fact be wrong. Some agricultural animals may in fact be capital
such as breeding stock and that they should not be treated as trading stock and on the revenue
account. It should be noted that the authors when referring to the Live Stock Schedules in
accounting form, as presented in Wade’s income tax return, used the words as they are
referenced, that is ‘Live Stock’ Schedule. Two words. At other times ‘livestock’ is one word.
The third article is written by Su Yee Liew, Chee Keong Choong and Lin Sea Lau and they
surveyed 384 respondents consisting of individuals and small to medium enterprise (SME)
owners to gauge the effectiveness of the Malaysian electronic tax filing system (e-filing), the
administration of the taxation system with tax compliance as the mediator. The study
investigated the impact of e-filing and the effectiveness of tax administration on tax revenue
in Malaysia, which is crucial for the government and the nation.Resultantly, tax compliance4
fully mediated the relationship between the effectiveness of tax administration and tax
revenue. Thus, the study presented a significant contribution to developing a new concept of
tax compliance regarding tax administration and tax revenue, which had not been
investigated.
The fourth article is written by several tax teachers involved in the management and
supervision of students in their respective university tax clinics. This article provides an
excellent examination of the role of the National Tax Clinic program and the benefits
provided to students working in the tax clinics. They are Annette Morgan, Brett Freudenberg,
Ann Kayis-Kumar, Van Le, Rob Whait, Michelle Cull, Donovan Castelyn and Connie Vitale.
The article provides a broad summary of Work Integrated Learning (WIL) and its
relationship with self-efficacy, and how the tax clinics established under the National Tax
Clinic Program have enabled the development of self-efficacy. Their research found an
increase in self-efficacy, with particularly strong growth in communication, coordination of
group tasks, presenting ideas and researching tax issues among student participants.
Moreover, through analysing student demographic data, the study identified key differences
within gender, age, and prior work experience.
The fifth article is written by Alexander Fullarton and Dale Pinto and builds on their previous
article included in this edition of the journal. The authors argue that the practice of accepting
ATO opinions without challenge can have extremely significant fiscal impacts on taxpayers
and tax collections. The authors warn that tax practitioners should not always consider that
the rulings, determinations, and advice provided by the ATO give the greater clarity and
certainty in the preparation and lodgement of taxation returns and the payment of tax that are
sought by practitioners. Tax agents are duty bound to take reasonable care to ensure that
taxation laws are applied correctly to the circumstances in relation to which they are
providing advice to a client, and in that context this article asserts that agents should not
accept that the ATO’s view on a matter is unquestionably correct. Further, it is noted that,
while the ATO provides guidance and views, their written advice usually contains a statement
to the effect that they are for guidance only and may not be binding in a court. Their written
opinions often include a specific disclaimer.