The certainty of tax in insolvency : where does the ATO fit?

There are several ways that the Commissioner of Taxation may indirectly obtain priority over unsecured creditors. This is contrary to the principle of pari passu, a principle endorsed by the 1988 Harmer Report as one that is a fundamental objective of the law of insolvency. As the law and practice of Australia's taxation regime evolves, the law is being drafted in a manner that is inconsistent with the principle of pari passu. The natural consequence of this development is that it places at risk the capacity of corporate and bankruptcy laws to coexist and cooperate with taxation laws. This article posits that undermining the consistency of Commonwealth legislative objectives is undesirable. The authors suggest that one means of addressing the inconsistency is to examine whether there is a clearly aligned theoretical basis for the development of these areas of law and the extent that alignment addresses these inconsistencies. This forms the basis for the recommendations made around such inconsistencies using statutory priorities as an exemplar.

Not for profit income tax exemption : is there a hole in the bucket, dear Henry?

Australia’s Future Tax System Review, headed by the then head of the Australian Treasury, and the Productivity Commission’s Research Report on the not for profit sector, both examined the state of tax concessions to Australia’s not for profit sector in the light of the High Court’s decision in Commissioner of Taxation v Word Investments Ltd. Despite being unable to quantify with any certainty the pre- or post-Word Investments cost of the tax concessions, both Reports indicated their support for continuation of the income tax exemption. However, the government acted in the 2011 Budget to target the not for profit income tax concessions more precisely, mainly on competitive neutrality grounds. This article examines the income tax exemption by applying the five taxation design principles, proposed in the Australia’s Future Tax System Review, for assessing tax expenditure. The conclusion is that the exemptions can be justified and, further, that a rationale for the exemption can be consistent with the reasoning in the Word Investments case.

Enlightenment out of chaos : power, politics and The Chaser’s War on Everything

This paper focuses on the satirical Australian television show The Chaser’s War on Everything, and uses it to critically explore the potential ramifications of what McNair (2006) has called ‘cultural chaos’. Through an analysis of several examples from this particular program, alongside interviews with its production team and qualitative audience research, this paper argues that this TV show’s engagement with political issues in a creative, entertaining way that departs from the conventions of traditional journalism, allows it to present a perhaps more authentic image of political agents than is often cultivated in the mainstream news media. This paper therefore provides clear evidence that the shift from homogeneity to heterogeneity in the news media presents a significant challenge to those who wish to heavily control public opinion. It also provides further support for an optimistic re-appraisal of entertainment which emphasises its central (not merely periphery) role in political discourse.

Introduction to special issue on what criminology can say about the war on terror

On 20 September 2001, the former US President, George W. Bush, declared what is now widely, and arguably infamously, known as a ‘war on terror’. In response to the fatal 9/11 attacks in New York and Washington, DC, President Bush identified the US military response as having far-reaching and long-lasting consequences. It was, he argued, ‘our war on terror’ that began ‘with al Qaeda, but … it will not end until every terrorist group of global reach has been found, stopped and defeated’ (CNN 2001). This was to be a war that would, in the words of former British Prime Minister, Tony Blair, seek to eliminate a threat that was ‘aimed at the whole democratic world’ (Blair 2001). Blair claimed that this threat is of such magnitude that unprecedented measures would need to be taken to uphold freedom and security. Blair would later admit that it was a war that ‘divided the country’ and was based on evidence ‘about Saddam having actual biological and chemical weapons, as opposed to the capability to develop them, has turned out to be wrong’ (Blair 2004). The failures of intelligence ushered in new political rhetoric in the form of ‘trust me’ because ‘instinct is no science’ (Blair 2004). The war on terror has been one of the most significant international events in the past three decades, alongside the collapse of the former Soviet Union, the end of apartheid in South Africa, the unification of Europe and the marketization of the People's Republic of China. Yet, unlike the other events, it will not be remembered for advancing democracy or sovereignty, but for the conviction politics of particular politicians who chose to dispense with international law and custom in pursuit of personal instincts that proved fatal. Since the invasions of Afghanistan in October 2001 and …

Social defence and international reconstructon : illustrating the governance of post-war criminological discourse

This article examines the technocratic priorities of criminological discourse following the Second World War. In doing so, it charts the role and influence of the United Nations and the doctrine of social defence, and traces those shifts and events that have forged a nexus between criminological endeavour and processes of governance. This article aims to illustrate that social defence and international reconstruction provide a useful framework for understanding the links between power/knowledge and the pragmatic orientations of criminological scholarship.

'The war of Canudos: a Euclidean interpretation.' [Guerra de Canudos: uma leitura euclidiana]

The publication of the book The interior, in 1902, would change the course of thinking about the War of Canudos, who for many years, had been known simply as' the history of Euclid. President Getulio Vargas became interested in the backwoods bloodbath after reading the book avenger-Euclidean. Liked the work he visited the place of occurrence of war promising enjoy the river poured-Barris with the construction of the weir Cocorobo. Euclides da Cunha lived and produced his work in a time of great change in thought, politics and technology. Despite having worked in the press throughout his life, was best known as an engineer, for having exercised the office during the reconstruction of the bridge, in Sao Jose do Rio Pardo. This article aims to illuminate the event of war in light of the Euclidean work. We will examine the trajectory of Euclides da Cunha in journalism. Your learning process to execute the office newsreader and war correspondent, the newspaper O Estado de S. Paul, as well as their reports and work-monument the hinterlands. Resumo: A publicação da obra Os sertões, em 1902, mudaria os rumos do pensamento sobre a Guerra de Canudos, que, por muitos anos, ficara conhecida, simplesmente, como ‘história de Euclides’. O presidente Getúlio Vargas interessou-se pela hecatombe sertaneja após ter lido o livro-vingador euclidiano. Gostou tanto da obra que visitou o lugar de acontecimento da guerra prometendo aproveitar as águas do rio Vaza-Barris com a construção do açude de Cocorobó. Euclides da Cunha viveu e produziu a sua obra em um momento de grandes transformações no pensamento, na política e na tecnologia. Apesar de ter atuado na imprensa ao longo de toda a sua vida, ficou mais conhecido como engenheiro, por ter exercido o ofício, durante a reconstrução da ponte, em São José do Rio Pardo. O presente artigo visa iluminar o acontecimento da guerra à luz da obra euclidiana. Examinaremos a trajetória de Euclides da Cunha no jornalismo. O seu processo de aprendizagem para exercer o ofício de noticiarista e correspondente de guerra, pelo jornal O Estado de S. Paulo, bem como, as suas reportagens e obra-monumento Os sertões.

Australian Tax Analysis [8th Edition]

Now in its eighth edition, Australian Tax Analysis: Cases, Commentary, Commercial Applications and Questions has a proven track record as a high level work for students of taxation law written by a team of authors with many years of experience. Taking into account the fact that the volume of material needed to be processed by today’s taxation student can be overwhelming, the well-chosen extracts and thought-provoking commentary in Australian Tax Analysis, 8th edition, provide readers with the depth of knowledge, and reasoning and analytical skills that will be required of them as practitioners. As well as the carefully selected case extracts and the helpful commentary, each chapter is supplemented by engaging practice questions, involving problem-solving, commercial decision-making, legal analysis and quantitative application. All these elements combined make Australian Tax Analysis an invaluable aid to the understanding of a subject that can be both technical and complex.

Incentivising private health insurance through the income tax regime : Capitalising on behavioural models

The Australian income tax regime is generally regarded as a mechanism by which the Federal Government raises revenue, with much of the revenue raised used to support public spending programs. A prime example of this type of spending program is health care. However, a government may also decide that the private sector should provide a greater share of the nation's health care. To achieve such a policy it can bring about change through positive regulation, or it can use the taxation regime, via tax expenditures, not to raise revenue but to steer or influence individuals in its desired direction. When used for this purpose, tax expenditures steer taxpayers towards or away from certain behaviour by either imposing costs on, or providing benefits to them. Within the context of the health sector, the Australian Federal Government deploys social steering via the tax system, with the Medicare Levy Surcharge and the 30 percent Private Health Insurance Rebate intended to steer taxpayer behaviour towards the Government’s policy goal of increasing the amount of health provision through the private sector. These steering mechanisms are complemented by the ‘Lifetime Health Cover Initiative’. This article, through the lens of behavioural economics, considers the ways in which these assorted mechanisms might have been expected to operate and whether they encourage individuals to purchase private health insurance.

Tax concessions for charities : competitive neutrality, the tax base and "public goods" choice

It is argued that concerns arise about the integrity and fairness of the taxation regime where charitable organizations, which avail themselves of the tax exemption status while undertaking commercial activities, compete directly with the for-profit sector. The appropriateness of the tax concessions granted to charitable organizations is considered in respect of income derived from commercial activities. It is principally argued that the traditional line of reasoning for imposing limitations on tax concessions focuses on an incorrect underlying inquiry. Traditionally, it is argued that limitations should be imposed because of unfair competition, lack of competitive neutrality, or an arbitrary decision relating to a lack of deserving. However, it is argued that a more appropriate question from which to base any limitations is one which considers the value attached to the integrity of the taxation regime as a whole, and the tax base specifically compared to the public good of charities. When the correct underlying question is asked, sound taxation policy ensues, as a less arbitrary approach may be adopted to limit the scope of tax concessions available to charitable organizations.

The allocation of taxing rights of ship and aircraft leasing profits under Australia's tax treaties

The Australian Federal Commissioner of Taxation recently released Draft Taxation Ruling TR 2008/D3 with the stated purpose of clarifying ‘what profits derived from the leasing of ships or aircraft fall within the ship and aircraft articles of each of Australia’s tax treaties’. In particular, TR 2008/D3 explains the taxing rights over different types of leasing profits, such as a full basis lease in respect of any transport by a ship operated in international traffic and bareboat leases which are ancillary to the lessor transport operations of ships in international traffic. This article outlines the Commissioner’s views on the application of the standard ships and aircraft articles in the tax treaties to which it is a party as well as considering the major variations on the standard adoption. In doing so, guidance is provided as to the allocation of taxing rights of ship and aircraft leasing profits under Australia’s tax treaties.

The implementation of social and economic policy through the tax regime : a review of Australia's tax expenditures program

Each year the Australian Federal Treasury releases its Tax Expenditures Statement providing details of concessions, benefits, and incentives delivered through the tax regime to Australian taxpayers. The current Tax Expenditures Statement, released on 25 January 2008, lists approximately 300 tax expenditures and reports on the estimated pecuniary value in terms of revenue foregone, estimated to be a total of $50.12 billion for the 2006-07 financial year. Apart from the annual Tax Expenditures Statement, and despite the recurring fiscal impact, there is very little other scrutiny of Australia’s Federal tax expenditures program. This is despite tax expenditures often being seen as an alternative to direct expenditures with similar impact on the Federal budget. The object of tax expenditures is to provide government assistance and meet government objectives, and, as such, tax expenditures are departures from the revenue raising aspect of the tax regime. Within this context, this article examines the fundamental concept of tax expenditures as contrasted with direct expenditures and considers the role they play in the current tax regime.

Conceptualising tax expenditures : commentary

The tax expenditures concept has been part of the Australian tax review system since 1973. In view of the fact that tax expenditures are considered part of the tax-transfer system, and that paragraph 9 of the terms of reference for the Review Panel requires a consideration of all relevant tax expenditures, we can be confident that they will be considered once again in the final report of Australia’s Future Tax System Review Panel. However, an examination of previous Government and Parliamentary reviews suggests that few of the resulting recommendations are adopted. Previous recommendations have resulted in the acknowledgement of and concern over tax expenditures, but have led to only one significant advancement: the publication of an annual tax expenditures statement. It is apparent that Brooks in his paper aims to ensure, and makes a compelling case for, the significance and central role tax expenditures should play in the Review Panel deliberations. In doing so, Brooks explores the concept itself as well as the conceptual implications impacting on the more pragmatic aspects of tax expenditure analysis. At the outset, Brooks explains why tax expenditures cannot be evaluated using traditional criteria of equity, neutrality, and simplicity, but rather can only be understood and evaluated using budgetary criteria.

Powering innovation through tax concessions : the changing research and development tax incentives

The changing R&D Tax Concession has been touted as the biggest reform to business innovation policy in over a decade. But, is it a changing tax for changing times? This paper addresses this question and further asks ‘what’s tax got to do with it?’. To answer this question, the paper argues that rather than substantive tax reform, the proposed measures simply alter the criteria and means by which companies become eligible for a Federal Government subsidy for qualifying R&D activity. It further argues that when considered as part of the broader innovation agenda, the R&D Tax Concession should be evaluated as a government spending program in the same way as any direct spending on innovation. When this is done, the tax regime is arguably only the administrative policy instrument by which the subsidy is delivered. However, it is proposed that this may not be best practice to distribute those funds fairly, efficiently, and without distortion, while at the same time maintaining adequate government control and accountability. Finally, in answering the question of ‘what’s tax got to do with it?’ the paper concludes that the answer is ‘very little’.