JAT Volume 23 Issue 1 Article 5 – TARIQ SHAH AND DEVOS

admin

TAX Implications ARISING FROM Mergers And Acquisitions – AN INVESTIGATION OF Australian Firm

AMNA TARIQ SHAH AND KEN DEVOS

Abstract

The tax and accounting literature indicates that mergers and acquisitions (M&As) have not
been predominant in Australia until recently, but there is strong overseas evidence that
suggests that this course of action can have significant tax implications. This paper
investigates the presence, if any, of potential tax advantages obtained by Australian-based
firms through M&A deals. Ninety-seven observations, comprising M&A deals completed
between 2005 and 2015, were investigated to statistically support and explain the potential
link between M&A decisions and certain corporate tax advantages gained. The findings
suggest that when firms make profit-maximising decisions as part of an M&A deal, a
potential reduction in tax can transpire from such transactions.

GO TO THE ARTICLE

JAT Volume 23 Issue 1 Article 4 – BELLE ISLE AND FREUDENBERG

admin

AN EVALUATION OF THE PROPOSED CHANGES TO THE INDIVIDUAL TAX RESIDENCY RULES

MELISSA BELLE ISLE AND BRETT FREUDENBERG

Abstract

Little is known about the knowledge (literacy) of small business owners (SBO). This is of
concern as the capabilities of SBOs may be central to the success of their business. For
example, such literacies might influence the SBO’s ability to manage cashflow, know their
obligations under the tax system and how to interpret the financial position of the business.
This article reports a survey of small businesses in the service sector in terms of their literacy
for financial statements, computer accounting software and business tax, and if there is any
relationship between them. Results demonstrates that there is a linear relationship between
them and that certain demographics are likely to have lower overall literacy.

GO TO THE ARTICLE

JAT Volume 23 Issue 1 Article 3 – NG

admin

AN EVALUATION OF THE PROPOSED CHANGES TO THE INDIVIDUAL TAX RESIDENCY RULES

ELIZABETH NG

Abstract

In the 2021-22 Federal Budget, the Government announced that the current individual tax residency rules will be replaced with new tests, which will be based on recommendations made by the Board of Taxation. The current residency rules are difficult to apply in practice. This is evidenced by the large number of cases and private binding rulings from 2016 to 2021 on the issue of residency, which indicate that taxpayers are seeking guidance from the Australian Taxation Office before turning to the courts to determine their residency status. The paper evaluates the extent to which the proposed residency tests are able to meet the policy objectives of equity, efficiency, and simplicity. The paper concludes that the proposed residency tests will meet the policy objectives to a large extent, and that the tests are a step in the right direction.

GO TO THE ARTICLE