JAT Volume 22 Issue 2 – ANU Tax Clinic

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2019 National Tax Clinic Project: the ANU Tax Clinic

BEN RAINES AND SONALI WALPOLA

Abstract
The ANU Tax Clinic was launched in August 2019 with the objective of delivering a social benefit to the community and providing a novel work-integrated learning opportunity for ANU Accounting students. The clinic provides information and guidance on income tax to lower- income individuals through one-on-one consultations and also provides free tax education seminars. In 2019, client consultations were conducted at the premises of community partner organizations at four locations in Canberra. This article describes the purpose and design of the ANU Tax Clinic, and provides an account of the 2019 experience, including how it has informed 2020 operations.

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JAT Volume 21 Issue 2 Article 6 – Walker

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ANALYSING NEW ZEALAND’S DIGITAL SERVICES TAX PROPOSAL

Abstract
The allocation of taxing rights for cross-border digital profits is a critical issue for the 21st century. The New Zealand government has responded with a discussion document proposing a digital services tax as an interim measure. Given the lack of global consensus on solutions for the issue, a digital services tax is a serious possibility. This article examines the government’s proposal.

The proposal’s rationale is based on active contribution, which is conceptually weak and contains several interpretative issues. The proposal fails to distinguish between traditional businesses and highly digitalised businesses (‘HDBs’) and, as a result, business activities of traditional businesses are, theoretically, in scope. However, high de minimis thresholds ensure that only large HDBs are liable.

Fundamentally, there is a lack of evidence that HDBs are paying tax at a lower effective rate than other businesses. Given this, it is strange that an international effort has been made to tackle HDBs. Furthermore, this unilateral approach could dangerously reduce multilateral cooperation in tax matters.

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JAT Volume 21 Issue 2 Article 5 – Maples and Yong

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THE TAX WORKING GROUP AND CAPITAL GAINS TAX IN NEW ZEALAND — A MISSED OPPORTUNITY?

Abstract

There has been much debate in New Zealand concerning the need for a separate and comprehensive capital gains tax (‘CGT’), especially after the appointment of the Tax Working Group (‘TWG’) in 2017. The arguments for a CGT include equity, base broadening, certainty, additional tax revenues and remedying the housing affordability crisis. On the other hand, counter-arguments such as tax complexity (in the design of the CGT), overstatement of projected tax revenues, and high tax compliance and administrative costs have been raised by opponents of the tax. The TWG identified three socio-economic challenges facing New Zealand (among others) — housing affordability, income/wealth inequality and fiscal sustainability — all of which it is argued have a link to the tax system. Ultimately, for political reasons the government decided not to pursue the TWG’s recommendation for a CGT. This paper considers whether this is a lost opportunity to address these three challenges.

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