Taxation of multinational banks : using formulary apportionment to reflect economic reality (Part 1)

Formulary apportionment does not attempt to undertake a transactional division of a highly integrated multinational entity. Rather, it allocates income to the jurisdictions based on an economically justifiable formula. Opposition to formulary apportionment is generally based on the argument that it is not a theoretically superior (or optimal) model because of the implementation difficulties. The conclusion that the unitary taxation model may be theoretically superior to the current arm's-length model that applies to multinational banks, despite significant implementation, compliance, and enforcement issues, is based on the unitary taxation model providing greater alignment with the unique features of these banks. The formulary apportionment model looks to the economic substance of the multinational entity and, in this sense, adopts a substance-over- form approach. Formulary apportionment further recognizes the impossibility of using arm's-length pricing for economically interdependent multinational entities. A final advantage to formulary apportionment, which is also a consequence of this model achieving greater inter-nation equity, is the elimination of double taxation.

The taxation of multinational banks : alternative apportionment through a unitary taxation regime aligning with economic reality

The taxation of multinational banks currently is governed by the general principles of international tax. However, it is arguable that there are characteristics exclusive to multinational banks that may warrant the consideration of a separate taxing regime. This article argues that because of the unique nature of multinational banks, the traditional international tax rules governing jurisdiction to tax and allocation of income do not produce a result which is optimal, as it does not reflect economic reality. That is, the current system does not produce a result that accurately reflects the economic source of the income or the location of the economic activity. The suggested alternative is unitary taxation using global formulary apportionment. Formulary apportionment is considered as an alternative that reflects economic reality by recognising the unique nature of multinational banks and allocating the income to the location of the economic activity. The unique nature of multinational banking is recognised in the fact that formulary apportionment does not attempt to undertake a transactional division of a highly integrated multinational entity. Rather, it allocates income to the jurisdictions based on an economically justifiable formula. Starting from this recognition, the purpose of this article is to demonstrate that formulary apportionment is a theoretically superior (or optimal) model for the taxation of multinational banks. An optimal regime, for the purposes of this article, is considered to be one that distributes the taxing rights in an equitable manner between the relevant jurisdictions, while, simultaneously allowing decisions of the international banks to be tax neutral. In this sense, neutrality is viewed as an economic concept and equity is regarded as a legal concept. A neutral tax system is one in which tax rules do not affect economic choices about commercial activities. Neutrality will ideally be across jurisdictions as well as across traditional and non-traditional industries. The primary focus of this article is jurisdictional neutrality. A system that distributes taxing rights in an equitable manner between the relevant jurisdictions ensures that each country receives its fair share of tax revenue. Given the increase in multinational banking, jurisdictions should be concerned that they are receiving their fair share. Inter-nation equity is concerned with re-determining the proper division of the tax base among countries. Richard and Peggy Musgrave argue that sharing of the tax base by countries of source should be seen as a matter of inter-nation equity requiring international cooperation. The rights of the jurisdiction of residency will also be at issue. To this extent, while it is agreed that inter-nation equity is an essential attribute to an international tax regime, there is no universal agreement as to how to achieve it. The current system attempts to achieve such equity through a combined residency and source regime, with the transfer pricing rules used to apportion income between the relevant jurisdictions. However, this article suggests, that as an alternative to the current regime, equity would be achieved through formulary apportionment. Opposition to formulary apportionment is generally based on the argument that it is not a theoretically superior (or optimal) model because of the implementation difficulties. Yet these are two separate issues. As such, this article is divided into two core parts. The first part examines the theoretical soundness of the formulary apportionment model concluding that it is theoretically superior to the arm’s length pricing requirement of the traditional transfer pricing regime. The second part examines the practical implications of accepting formulary apportionment as an optimal model with a view to disclosing the issues that arise when a formulary apportionment regime is adopted. Prior to an analysis of the theoretical and practical application of formulary apportionment to multinational banks, the unique nature of these banks is considered. The article concludes that, while there are significant implementation, compliance, and enforcement issues to overcome, the unitary taxation model may be theoretically superior to the current arm’s length model which applies to multinational banks. This conclusion is based on the unitary taxation model providing greater alignment with the unique features of these banks.

Cancer risk in persons with HIV/AIDS in India: a review and future directions for research

Background India has a large and evolving HIV epidemic. Little is known about cancer risk in Indian persons with HIV/AIDS (PHA) but risk is thought to be low. Methods To describe the state of knowledge about cancer patterns in Indian PHA, we reviewed reports from the international and Indian literature. Results As elsewhere, non-Hodgkin lymphomas dominate the profile of recognized cancers, with immunoblastic/large cell diffuse lymphoma being the most common type. Hodgkin lymphoma is proportionally increased, perhaps because survival with AIDS is truncated by fatal infections. In contrast, Kaposi sarcoma is rare, in association with an apparently low prevalence of Kaposi sarcoma-associated herpesvirus. If confirmed, the reasons for the low prevalence need to be understood. Cervical, anal, vulva/vaginal and penile cancers all appear to be increased in PHA, based on limited data. The association may be confounded by sexual behaviors that transmit both HIV and human papillomavirus. Head and neck tumor incidence may also be increased, an important concern since these tumors are among the most common in India. Based on limited evidence, the increase is at buccal/palatal sites, which are associated with tobacco and betel nut chewing rather than human papillomavirus. Conclusion With improving care of HIV and better management of infections, especially tuberculosis, the longer survival of PHA in India will likely increase the importance of cancer as a clinical problem in India. With the population's geographic and social diversity, India presents unique research opportunities that can be embedded in programs targeting HIV/AIDS and other public health priorities.

Controlling Minimally-Actuated Vehicles for Applications in Ocean Observation

Establishing a persistent presence in the ocean with an AUV to observe temporal variability of large-scale ocean processes requires a unique sensor platform. In this paper, we propose a strategy that utilizes ocean model predictions to increase the autonomy and control of Lagrangian or profiling floats for precisely this purpose. An A* planner is applied to a local controllability map generated from predictions of ocean currents to compute a path between prescribed waypoints that has the highest likelihood of successful execution. The control to follow the planned path is computed by use of a model predictive controller. This controller is designed to select the best depth for the vehicle to exploit ambient currents to reach the goal waypoint. Mission constraints are employed to simulate a practical data collection mission. Results are presented in simulation for a mission off the coast of Los Angeles, CA USA, and show surprising results in the ability of a Lagrangian float to reach a desired location.

The taxation of multinational banking income : is the traditional rationale correct?

This article argues that multinational banks have characteristics which are unique and distinguishable from traditional multinational entities. The first distinguishing feature is the unique nature of the services and consequent products supplied by multinational banks, which are aimed at meeting client global demand. The second distinguishing feature is the non-traditional organisational structure that is adopted. This structure, also designed to meet client global demand, introduces issues previously not recognised in the traditional taxation system, which is designed for the structure of traditional multinational entities. The unique differences between traditional multinational entities and multinational banks means there may be the need for a distinct international tax regime. It is argued that there are “outmoded economic assumptions” upon which the present tax laws relating to multinational banks are based. An examination of the unique nature of multinational banks leads to the conclusion that the appropriate tax treatment of these banks is different from the appropriate tax treatment of multinational entities generally.

Impressions of China : Zhang Yimou's outdoor theme productions

This thesis examines contemporary mediated spectacles used in regional tourism strategies. In recent years there has been growing occurrence of ‘formatted entertainment models’ in China. With this in mind, this thesis explores the ways in which traditional cultural resources are being converted to generate diverse, hybrid commodities. The unique business model of Zhang Yimou, known as the Impression Series provides the case study. The thesis examines multilayered representations of products which continuously form, and are formatted, under the logic of the cultural market. The case study highlights the revival of traditional Chinese culture, a new branding of the Chinese national image and rising ‘soft power’. Primarily, the thesis argues that personal celebrity endorsement is replacing political propaganda heroes in promoting an alternative image of China. Zhang Yimou and Impression West Lake function as a dual branding mechanism that combines ‘people marketing’ and ‘place marketing’ for the development of a ‘created in China’ cultural commodity as well as for the generation of positive economic outcomes. Secondly, the thesis identifies how natural resources linked with a local tourism industry are articulated into cultural products and how this is experienced by visitors. Culture is a core component of China’s ‘soft power.’ Cultural experience’ strategies such as Impression combine global marketing and local cultural forces. The thesis argues that a creative entrepreneur has more advantages in promoting ‘soft power’ than governmental propaganda strategies. Thirdly, Impression West Lake encapsulates the rise of the creative entrepreneur with the help of local government authorities. Even though government cultural policy-makers can facilitate the cultural infrastructure, they ultimately rely on the entrepreneur’s creative vision and understanding of the market. Finally, based on the study of Impression West Lake, the thesis outlines future opportunities for social, cultural and economic reform in China.

Exploring information experience using social media during the 2011 Queensland floods : a pilot study

Social media networks have emerged as a powerful tool in allowing collaboration and sharing of information during times of crisis (Bruns, The Centre for Creative Industries Blog, comment posted on January 19,2011). The 2011 Queensland floods provided a unique opportunity to explore social media use during an emergency. This paper presents the findings of a pilot study that explored the information experiences of people using social media during the flooding of the Brisbane River. Analysis of data from four interviews supported the emergence of four categories of information experience. Examination of the categories revealed variation between the way in which individuals experienced social media and the point of the flooding at which each category of experience occurred. Information regarding individual’s use of social media has the potential to inform the development of social media platforms that can provide relevant and accessible information for the general public in event of a natural disaster.

The impact of computers on physical and psychological health: Strategies for staying in the "zone".

At a time when distance learning and flexible delivery of university courses are increasing, spending long hours on computers, working from home or in the laboratory, raises some unique problems for students. The paper presents a theoretical framework for first year students which helps to explain the developmental process that many students find themselves going through during their transitional phase at university. It will introduce the concept taken from sports psychology of "staying in the zone of peak academic performance" in order to accomplish the task of obtaining a degree whilst at the same time ensuring physical and psychological health. Strategies used by therapists to assist students to continue successfully in their course of choice and to achieve desirable outcomes will be discussed.

New strategies of managing waste in office building retrofit projects

Retrofit projects are different from newly-built projects in many respects. A retrofit project involves an existing building, which imposes constraints on the owners, designers, operators and constructors throughout the project process. Retrofit projects are risky, complex, less predictable and difficult to be well planned, which need greater coordination. For office building retrofit project, further restrictions will apply as these buildings often locate in CBD areas and most have to remain operational during the progression of project work. Issues such as site space, material storage and handling, noise and dust, need to be considered and well addressed. In this context, waste management is even more challenging with small spaces for waste handling, uncertainties in waste control, and impact of waste management activities on project delivery and building occupants. Current literatures on waste management in office building retrofit projects focus on increasing waste recovery rate based on project planning, monitoring and stakeholders’ collaboration. However, previous research has not produced knowledge of understanding the particular retrofit processes and their impact on waste generation and management. This paper discusses the interim results of a continuing research on new strategies for waste management in office building retrofit projects. Firstly based on the literature review, it summarizes the unique characteristics of office building retrofit projects and their influence on waste management. An assumption on waste management strategies is formed. Semi-structured interviews were conducted towards industry practitioners and findings are then presented in the paper. The assumption of the research was validated in the interviews from the opinions and experiences of the respondents. Finally the research develops a process model for waste management in office building retrofit projects. It introduces two different waste management strategies. For the dismantling phase, waste is generated fast along with the work progress, so integrated planning for project delivery and waste generation is needed in order to organize prompt handling and treatment. For the fit-out phase, the work is similar as new construction. Factors which are particularly linked to generating waste on site need to be controlled and monitored. Continuing research in this space will help improve the practice of waste management in office building retrofit projects. The new strategies will help promote the practicality of project waste planning and management and stakeholders’ capability of coordinating waste management and project delivery.

Local Hollywood: global film production and the Gold Coast

Hollywood films and television programs are watched by a global audience. While many of these productions are still made in southern California, the last twenty years have seen new production centres emerge in the US, Canada and other locations worldwide. Global Hollywood has been made possible by this growing number of Local Hollywoods: locations equipped with the requisite facilities, resources and labour, as well as the political will and tax incentives, to attract and retain high-budget, Hollywood-standard projects. This new book gives an unprecedented insight into how the Gold Coast became the first outpost of Hollywood in Australia. When a combination of forces drove Hollywood studios and producers to work outside California, the Gold Coast's unique blend of government tax support, innovative entrepreneurs and diverse natural settings made it a perfect choice to host Hollywood productions. 'Local Hollywood' makes an essential contribution to the field of film and media studies, as well as giving film buffs a behind-the-scenes tour of the film industry.

Leveraging value within IT-backed collaborative alliances

Organizations today make radical use of the IT resources to sustain or better their existing competitive position. One such initiative is forming alliances on a shared IT backbone with partners of their value chain. We term these alliances the collaborative organizational structures (COS). Regardless of the nature of engagement with IT resources, organizations will require unique competencies to obtain performance-differentiating value from these IT resources. In a collaborative environment, these competencies would be a result of the synergy between the alliances’ unique competences. We call these the inter-firm IT-related capabilities. The resource centric theoretical frameworks suggest a trajectory of competence development and the structure of inter-firm competencies, but does not inform on the nature of these competencies. We employ an interpretive design to suggest three inter-firm IT-related capabilities for IT-backed collaborative alliances. We discuss these capabilities in this research and suggest that their effectiveness be measured directly against the collaborative rent, and indirectly against the firm-level performance of the alliance partners. This forms a model of leveraging and evaluating value within IT-backed collaborative alliances.

A note on the ‘Linsanity’ of measuring the relative efficiency of National Basketball Association (NBA) guards

This note examines the productive efficiency of 62 starting guards during the 2011/12 National Basketball Association (NBA) season. This period coincides with the phenomenal and largely unanticipated performance of New York Knicks’ starting point guard Jeremy Lin and the attendant public and media hype known as Linsanity. We employ a data envelopment analysis (DEA) approach that includes allowance for an undesirable output, here turnovers per game, with the desirable outputs of points, rebounds, assists, steals, and blocks per game and an input of minutes per game. The results indicate that depending upon the specification, between 29 and 42 percent of NBA guards are fully efficient, including Jeremy Lin, with a mean inefficiency of 3.7 and 19.2 percent. However, while Jeremy Lin is technically efficient, he seldom serves as a benchmark for inefficient players, at least when compared with established players such as Chris Paul and Dwayne Wade. This suggests the uniqueness of Jeremy Lin’s productive solution and may explain why his unique style of play, encompassing individual brilliance, unselfish play, and team leadership, is of such broad public appeal.

Entertainment architecture : constructing a framework for the creation of an emerging transmedia form

This thesis investigates the radically uncertain formal, business, and industrial environment of current entertainment creators. It researches how a novel communication technology, the Internet, leads to novel entertainment forms, how these lead to novel kinds of businesses that lead to novel industries; and in what way established entertainment forms, businesses, and industries are part of that process. This last aspect is addressed by focusing on one exemplary es-tablished form: movies. Using a transdisciplinary approach and a combination of historical analysis, industry interviews, and an innovative mode of ‘immersive’ textual analysis, a coherent and comprehensive conceptual framework for the creation of and re-search into a specific emerging entertainment form is proposed. That form, products based on it, and the conceptual framework describing it are all re-ferred to as Entertainment Architecture (‘entarch,’ for short). The thesis charac-terises this novel form as Internet-native transmedia entertainment, meaning it fully utilises the unique communicative characteristics of the Internet, and is spread across media. The thesis isolates four constitutive elements within Entertainment Architec-ture: story, play, ‘dance,’ and ‘glue.’ That is, entarch tells a story; offers playful interaction; invites social interaction between producer and consumer, and amongst consumers (‘dance’); and all components of it can be spread across many media, but are so well interconnected and mutually dependent that they are perceived as one product instead of many (‘glue’). This sets entarch apart from current media franchises like Star Wars or Halo, which are perceived as many products spread across many media. Entarch thus embraces the commu-nicative behaviour of Internet-native consumers instead of forcing them to de-sist from it, it harnesses the strengths of various media while avoiding some of their weaknesses, and it can sustain viable businesses. The entarch framework is an innovative contribution to scholarship that al-lows researchers to investigate this emerging entertainment form in a structured way. The thesis demonstrates this by using it to survey business models appro-priate to the entarch environment. The framework can also be used by enter-tainment creators — exemplified in the thesis by moviemakers — to delimit the room for manoeuvre available to them in a changing environment.

A genealogy of calculations at an early Queensland sugar mill

This study of a unique historic situation is sociologically framed and politically contextualized. It examines the technical and persuasive rhetorical dimensions of calculations employed at a nineteenth-century Queensland sugar plantation and mill in relation to the employment of indentured labour. Historical archival data is interpreted through the lens of the rhetoric of rationality. Queensland legislation permitted the employment of indentured Pacific islanders to assist in the development of its sugar industry. Accounting practices employed at the Colonial Sugar Refinery (CSR) Company’s Goondi Plantation and Mill focused on recording and controlling labour costs to maximize profits and maintain a healthy dividend to shareholders. The use of this single perspective, while it provides a restricted interpretation of events, nevertheless enables some unique insights about the practice of accounting in this historic context.

Meeting under the “Omei” Tree in the Torres Strait Islands : networks and funds of knowledge of mathematical ideas

This paper focuses on the turning point experiences that worked to transform the researcher during a preliminary consultation process to seek permission to conduct of a small pilot project on one Torres Strait Island. The project aimed to learn from parents how they support their children in their mathematics learning. Drawing on a community research design, a consultative meeting was held with one Torres Strait Islander community to discuss the possibility of piloting a small project that focused on working with parents and children to learn about early mathematics processes. Preliminary data indicated that parents use networks in their community. It highlighted the funds of knowledge of mathematics that exist in the community and which are used to teach their children. Such knowledges are situated within a community’s unique histories, culture and the voices of the people. “Omei” tree means the Tree of Wisdom in the Island community.