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.

Confrontation and cooptation : a brief history of Australian political blogs

The history of political blogging in Australia does not entirely match the development of blogospheres in other countries. Even at its beginning, blogging was not an entirely alternative endeavour – one of the first news or political blogs was Margo Kingston’s Webdiary, hosted by the Sydney Morning Herald. In the United States, whose political blogosphere has been examined most comprehensively in the literature (see e.g. Adamic & Glance, 2005; Drezner & Farrell, 2008; Shaw & Benkler, 2012; Tremayne, 2007; Wallsten, 2008), blogging had a clear historical trajectory from alternative to mainstream medium. The Australian blogosphere, by contrast, has seen early and continued involvement from representatives of the mainstream media, blogging both for their employers and independently (Garden, 2010). Coupled with the incorporation of blog-like technologies into news websites, as well as with obvious differences in the size of the available talent pool and potential audience for political blogging in Australia, this recognition of blogging by the mainstream media may be one reason why, in political and news discussions at least, Australian bloggers did not bring about their own, local equivalents to the resignations of Dan Rather or Trent Lott in the U.S. –events which were commonly attributed in part to the work of bloggers (Simons, 2007). However, the acceptance of the blogging concept by the mainstream media has been accompanied by a comparative lack of acceptance towards individual bloggers. Analyses and commentary published by bloggers have been attacked by journalists, creating an at times antagonistic relationship between the mainstream media and bloggers (Flew & Wilson, 2010; Young, 2011). In this article, we examine the historical development of blogging in Australia, focussing primarily on political and news blogs. In particular, we review who the bloggers are and how the connections between different blogs and other titles have changed over the past decade. The paper tracks the evolution of individual and group blogs, independent and mainstream media-hosted opinion sites, and the gradual convergence of these platforms and their associated contributing authors. We conclude by examining the current state of the Australian blogosphere and its likely future development, taking into account the rise of social media, and in particular Twitter, as additional spaces for public commentary.

How research findings can inform legislation and school policy on cyberbullying.

Recent empirical research has found that the psychological consequences for young people involved in cyberbullying are more severe than in the case of traditional bullying (Campbell, Spears, Slee, Butler, & Kift, 2012; Perren, Dooley, Shaw, & Cross, 2010). Cybervictimisation has been found to be a significant predictor of depressive symptoms over and above that of being victimised by traditional bullying (Perren et al., 2010). Cybervictims also have reported higher anxiety scores and social difficulties than traditional victims, with those students who had been bullied by both forms showing similar anxiety and depression scores to cyberbullying victims (Campbell et al., 2012). This is supported by the subjective views of many young people, not involved in bullying, who believed that cyberbullying is far more harmful than traditional bullying (Cross et al., 2009). However, students who were traditionally bullied thought the consequences of traditional bullying were harsher than did those students who were cyberbullied (Campbell, et al., 2012). In Slonje and Smith’s study (2008), students reported that text messaging and email bullying had less of an impact than traditional bullying, but that bullying by pictures or video clips had more negative impact than traditional bullying.

The effects of increased endurance training load on biomarkers of heat intolerance during intense exercise in the heat

The effects of increased training (IT) load on plasma concentrations of lipopolysaccharides (LPS), proinflammatory cytokines, and anti-LPS antibodies during exercise in the heat were investigated in 18 male runners, who performed 14 days of normal training (NT) or 14 days of 20% IT load in 2 equal groups. Before (trial 1) and after (trial 2) the training intervention, all subjects ran at 70% maximum oxygen uptake on a treadmill under hot (35 degrees C) and humid (similar to 40%) conditions, until core temperature reached 39.5 degrees C or volitional exhaustion. Venous blood samples were drawn before, after, and 1.5 h after exercise. Plasma LPS concentration after exercise increased by 71% (trial 1, p < 0.05) and 21% (trial 2) in the NT group and by 92% (trial 1, p < 0.01) and 199% (trial 2, p < 0.01) in the IT group. Postintervention plasma LPS concentration was 35% lower before exercise (p < 0.05) and 47% lower during recovery (p < 0.01) in the IT than in the NT group. Anti-LPS IgM concentration during recovery was 35% lower in the IT than in the NT group (p < 0.05). Plasma interleukin (IL)-6 and tumor necrosis factor (TNF)-alpha concentrations after exercise (IL-6, 3-7 times, p < 0.01, and TNF-alpha, 33%, p < 0.01) and during recovery (IL-6, 2-4 times, p < 0.05, and TNF-alpha, 30%, p < 0.01) were higher than at rest within each group. These data suggest that a short-term tolerable increase in training load may protect against developing endotoxemia during exercise in the heat.

A qualitative investigation of older pedestrian views of influences on their road crossing safety

With Australia’s population rapidly ageing, older pedestrian safety has begun to receive greater attention from road safety researchers. However, reliance on simulator studies and observational techniques has limited current understanding of why older pedestrians adopt particular crossing behaviours, and how they perceive crossing the road. The current study aimed to investigate the psychological factors that may contribute to older pedestrians’ crash risk by examining their perceptions of the issues they encounter on the road. Qualitative semi-structured interviews with 18 pedestrians aged 55 years and older were conducted, and the interview transcripts underwent thematic analysis. From this analysis, four key themes emerged. Firstly, the physical design of the road was perceived as posing a significant threat for older pedestrians, particularly sloped, semi-mountable kerbs and designated crossings. Secondly, declines in older pedestrians’ confidence in their ability to cross the road were evident through fewer reported risks being taken. Additionally, older pedestrians sensed an increased threat from other road users when crossing the road, particularly from drivers and cyclists. Finally, older pedestrians referred to the informal rules and strategies used to guide their road crossing. The results suggest that the road environment is perceived as increasingly dangerous and hazardous environment for older pedestrians. Implications regarding the physical road design in areas with an existing high proportion of elderly people are discussed.

Do drivers respond emotionally and behaviourally differently to an intentionally anger provoking driving situation than to an ambiguous, but potentially provocative, one? Results of a self-report survey.

Aggressive driving is considered an important road-safety concern for drivers in highly motorised countries. However, understanding of the causes and maintenance factors fundamental to aggressive driving is limited. In keeping with theoretical advances from general aggression research such as the General Aggression Model (GAM), research has begun to examine the emotional and cognitive antecedents of aggressive driving in order to better understand the underlying processes motivating aggressive driving. Early findings in the driving area have suggested that greater levels of aggression are elicited in response to an intentionally aggressive on-road event. In contrast, general aggression research suggests that greater levels of aggression are elicited in response to an ambiguous event. The current study examined emotional and cognitive responses to two hypothetical driving scenarios with differing levels of aggressive intent (intentional versus ambiguous). There was also an interest in whether factors influencing responses were different for hostile aggression (that is, where the action is intended to harm the other) versus instrumental aggression (that is, where the action is motivated by an intention to remove an impediment or attain a goal). Results were that significantly stronger negative emotion and negative attributions, as well as greater levels of threat were reported in response to the scenario which was designed to appear intentional in nature. In addition, participants were more likely to endorse an aggressive behavioural response to a situation that appeared deliberately aggressive than to one where the intention was ambiguous. Analyses to determine if greater levels of negative emotions and cognitions are able to predict aggressive responses provided different patterns of results for instrumental aggression from those for hostile aggression. Specifically, for instrumental aggression, negative emotions and negative attributions were significant predictors for both the intentional and the ambiguous scenarios. In addition, perceived threat was also a significant predictor where the other driver’s intent was clearly aggressive. However, lower rather than higher, levels of perceived threat were associated with greater endorsement of an aggressive response. For hostile aggressive behavioural responses, trait aggression was the strongest predictor for both situations. Overall the results suggest that in the driving context, instrumental aggression is likely to be a much more common response than hostile aggression. Moreover, aggressive responses are more likely in situations where another driver’s behaviour is clearly intentional rather than ambiguous. The results also support the conclusion that there may be different underlying mechanisms motivating an instrumental aggressive response to those motivating a hostile one. In addition, understanding the emotions and cognitions underlying aggressive driving responses may be helpful in predicting and intervening to reduce driving aggression. The finding that drivers appear to regard tailgating as an instrumental response is of concern since this behaviour has the potential to result in crashes.

Using optical coherence tomography to assess corneoscleral morphology after soft contact lens wear

Purpose. To evaluate the use of optical coherence tomography (OCT) to assess the effect of different soft contact lenses on corneoscleral morphology. Methods. Ten subjects had anterior segment OCT B-scans taken in the morning and again after six hours of soft contact lens wear. For each subject, three different contact lenses were used in the right eye on non-consecutive days, including a hydrogel sphere, a silicone hydrogel sphere and a silicone hydrogel toric. After image registration and layer segmentation, analyses were performed of the first hyper-reflective layer (HRL), the epithelial basement membrane (EBL) and the epithelial thickness (HRL to EBL). A root mean square difference (RMSD) of the layer profiles and the thickness change between the morning and afternoon measurements, was used to assess the effect of the contact lens on the corneoscleral morphology. Results. The soft contact lenses had a statistically significant effect on the morphology of the anterior segment layers (p <0.001). The average amounts of change for the three lenses (average RMSD values) for the corneal region were lower (3.93±1.95 µm for the HRL and 4.02±2.14 µm for the EBL) than those measured in the limbal/scleral region (11.24±6.21 µm for the HRL and 12.61±6.42 µm for the EBL). Similarly, averaged across the three lenses, the RMSD in epithelial thickness was lower in the cornea (2.84±0.84 µm) than the limbal/scleral (5.47±1.71 µm) region. Post-hoc analysis showed that ocular surface changes were significantly smaller with the silicone hydrogel sphere lens than both the silicone hydrogel toric (p<0.005) and hydrogel sphere (p<0.02) for the combined HRL and EBL data. Conclusions. In this preliminary study, we have shown that soft contact lenses can produce small but significant changes in the morphology of the limbal/scleral region and that OCT technology is useful in assessing these changes. The clinical significance of these changes is yet to be determined.

Architecture post mortem : the diastolic architecture of decline, dystopia, and death

Architecture Post Mortem surveys architecture’s encounter with death, decline, and ruination following late capitalism. As the world moves closer to an economic abyss that many perceive to be the death of capital, contraction and crisis are no longer mere phases of normal market fluctuations, but rather the irruption of the unconscious of ideology itself. Post mortem is that historical moment wherein architecture’s symbolic contract with capital is put on stage, naked to all. Architecture is not irrelevant to fiscal and political contagion as is commonly believed; it is the victim and penetrating analytical agent of the current crisis. As the very apparatus for modernity’s guilt and unfulfilled drives-modernity’s debt-architecture is that ideological element that functions as a master signifier of its own destruction, ordering all other signifiers and modes of signification beneath it. It is under these conditions that architecture theory has retreated to an “Alamo” of history, a final desert outpost where history has been asked to transcend itself. For architecture’s hoped-for utopia always involves an apocalypse. This timely collection of essays reformulates architecture’s relation to modernity via the operational death-drive: architecture is but a passage between life and death. This collection includes essays by Kazi K. Ashraf, David Bertolini, Simone Brott, Peggy Deamer, Didem Ekici, Paul Emmons, Donald Kunze, Todd McGowan, Gevork Hartoonian, Nadir Lahiji, Erika Naginski, and Dennis Maher. Contents: Introduction: ‘the way things are’, Donald Kunze; Driven into the public: the psychic constitution of space, Todd McGowan; Dead or alive in Joburg, Simone Brott; Building in-between the two deaths: a post mortem manifesto, Nadir Lahiji; Kant, Sade, ethics and architecture, David Bertolini; Post mortem: building deconstruction, Kazi K. Ashraf; The slow-fast architecture of love in the ruins, Donald Kunze; Progress: re-building the ruins of architecture, Gevork Hartoonian; Adrian Stokes: surface suicide, Peggy Deamer; A window to the soul: depth in the early modern section drawing, Paul Emmons; Preliminary thoughts on Piranesi and Vico, Erika Naginski; architectural asceticism and austerity, Didem Ekici; 900 miles to Paradise, and other afterlives of architecture, Dennis Maher; Index.

Peripheral compartment innate immune response to Haemophilus influenzae and Streptococcus pneumoniae in chronic obstructive pulmonary disease patients.

Alterations in innate immunity that predispose to chronic obstructive pulmonary disease (COPD) exacerbations are poorly understood. We examined innate immunity gene expression in peripheral blood polymorphonuclear leukocytes (PMN) and monocytes stimulated by Haemophilus influenzae and Streptococcus pneumoniae. Thirty COPD patients (15 rapid and 15 non-rapid lung function decliners) and 15 smokers without COPD were studied. Protein expression of IL-8, IL-6, TNF-α and IFN-γ (especially monocytes) increased with bacterial challenge. In monocytes stimulated with S. pneumoniae, TNF-α protein expression was higher in COPD (non-rapid decliners) than in smokers. In co-cultures of monocytes and PMN, mRNA expression of TGF-β1 and MYD88 was up-regulated, and CD14, TLR2 and IFN-γ down-regulated with H. influenzae challenge. TNF-α mRNA expression was increased with H. influenzae challenge in COPD. Cytokine responses were similar between rapid and non-rapid decliners. TNF-α expression was up-regulated in non-rapid decliners in response to H. influenzae (monocytes) and S. pneumoniae (co-culture of monocytes and PMN). Exposure to bacterial pathogens causes characteristic innate immune responses in peripheral blood monocytes and PMN in COPD. Bacterial exposure significantly alters the expression of TNF-α in COPD patients, although not consistently. There did not appear to be major differences in innate immune responses between rapid and non-rapid decliners.

Sustainable infrastructure operations : a review of assessment schemes and decision support

Infrastructure forms a vital component in supporting today’s way of life and has a significant role or impact on economic, environmental and social outcomes of the region around it. The design, construction and operation of such assets are a multi-billion dollar industry in Australia alone. Another issue that will play a major role in our way life is that of climate change and the greater concept of sustainability. With limited resources and a changing natural world it is necessary for infrastructure to be developed and maintained in a manner that is sustainable. In order to achieve infrastructure sustainability in operations it is necessary for there to be: a sustainability assessment scheme that provides a scientifically sound and realistic approach to measuring an assets level of sustainability; and, systems and tools to support the making of decisions that result in sustainable outcomes by providing feedback in a timely manner. Having these in place will then help drive the consideration of sustainability during the decision making process for infrastructure operations and maintenance. In this paper we provide two main contributions; a comparison and review of sustainability assessment schemes for infrastructure and their suitability for use in the operations phase; and, a review of decision support systems/tools in the area of infrastructure sustainability in operations. For this paper, sustainability covers not just the environment, but also finance/economic and societal/community aspects as well. This is often referred to as the Triple Bottom Line and forms one of the three dimensions of corporate sustainability [Stapledon, 2004].

Introducing sustainability assessment to civil infrastructure projects & assets

Civil infrastructure plays a key role in supporting and improving current way of life. However, the assets can have a large impact on the region around them, which are both positive (usually for the purpose they are built) and negative (consequences and unintended effects). There is an increasing trend for society to place an importance on the role of sustainability to ensure that there is a world suitable for future generations. In order to ensure that the world for future generations is in the best possible condition it is increasingly important to look at integrating sustainability outcomes into the way industry operates, including the infrastructure industry. It is therefore important to undertake sustainability assessment of civil infrastructure projects. By having organisations take on sustainability assessments of civil infrastructure assets both during construction and in operation, the industry can assist to drive outcomes and results that will benefit society and future generations and make their own operations more efficient.

Militarism and International Relations : Political economy, security, theory, edited by Anna Stavrianakis and Jan Selby, Abingdon, Routledge, 2012, 212 pp., £80.00 (hardback), ISBN 978-0-415-61491-7

An engaging narrative is maintained throughout this edited collection of articles that address the issue of militarism in international relations. The book seamlessly integrates historical and contemporary perspectives on militarism with theory and relevant international case studies, resulting in a very informative read. The work is comprised of three parts. Part 1 deals with the theorisation of militarism and includes chapters by Anna Stavrianakis and Jan Selby, Martin Shaw, Simon Dalby, and Nicola Short. It covers a range of topics relating to historical and contemporary theories of militarism, geopolitical threat construction, political economy, and the US military’s ‘cultural turn’.

Managing the therapeutic relationship in online cognitive behavioural therapy for depression: Therapists' treatment of clients' contributions

This article examines how therapists and clients manage the therapeutic relationship in online psychotherapy. Our study focuses on early sessions of therapy involving 22 therapist-client pairs participating in online Cognitive Behavioural Therapy (CBT) for depression. Using Conversation Analysis (CA), we examine how therapists can orient to clients’ contributions, while also retaining control of the therapeutic trajectory. We report two practices that therapists can use, at their discretion, following clients’ responses to requests for information. The first, thanking, accepts clients’ responses, orienting to the neutral affective valence of those responses. The second, commiseration, orients to the negative affective valence of clients’ responses. We argue that both practices are a means by which therapists can simultaneously manage developing rapport, while also retaining control of the therapeutic process.

Factors affecting marketing decision making with an ethical content : collusive tendering in the construction contract market

Reports of immoral marketing practices i n the construction industry attract political, media and public but not much academic interest. This paper adopts a behavioural perspective and proposes a model for applying marketing ethics concepts and methods in the study of collusion in the construction contract market. An extensive multidisciplinary review of existing literature identified a lack of adequate conceptualisation of the mechanisms and decision making factors of collusive tendering. The process of developing the model is detailed in this paper. The objectives and methodology of the research project that tested the model are also outlined. The paper concludes with a brief note on the contributions and application of the proposed model.