The forgotten CGT events: Are asset revaluation reserve distributions by trustees of discretionary trusts capital gains?

It is the present practice that asset revaluation reserve distributions by trustees of discretionary trusts are not taxed in Australia. Are such distributions not meant to be taxed, or have relevant sections in the Income Tax Assessment Acts been overlooked? This article will review how trustees of discretionary trusts perform asset revaluation reserve distributions. It then challenges the current accepted view that they can be distributed tax-free to discretionary beneficiaries by analysing relevant CGT events, which the authors regard as forgotten events. It will be submitted that a discretionary beneficiary in receipt of an asset revaluation reserve distribution may have a capital gain which is required to be included in its assessable income. This liability for tax is regardless of the government's recent introduction of s 109XA to address the practice of asset revaluation reserve distributions bypassing the operation of Div 7A of the ITAA 1936 with such distributions.

On compliance of business processes with business contracts

This paper addresses the problem of ensuring compliance of business processes, implemented within and across organisational boundaries, with the constraints stated in related business contracts. In order to deal with the complexity of this problem we propose two solutions that allow for a systematic and increasingly automated support for addressing two specific compliance issues. One solution provides a set of guidelines for progressively transforming contract conditions into business processes that are consistent with contract conditions thus avoiding violation of the rules in contract. Another solution compares rules in business contracts and rules in business processes to check for possible inconsistencies. Both approaches rely on a computer interpretable representation of contract conditions that embodies contract semantics. This semantics is described in terms of a logic based formalism allowing for the description of obligations, prohibitions, permissions and violations conditions in contracts. This semantics was based on an analysis of typical building blocks of many commercial, financial and government contracts. The study proved that our contract formalism provides a good foundation for describing key types of conditions in contracts, and has also given several insights into valuable transformation techniques and formalisms needed to establish better alignment between these two, traditionally separate areas of research and endeavour. The study also revealed a number of new areas of research, some of which we intend to address in near future.

Auditor independence and fee dependence

This study investigates whether fee dependence within the audit firms' offices jeopardises auditor independence. Fee dependence is examined at both the national audit firm level as well as the local office level and in a setting where public disclosure of fees is mandatory. We focus our tests on audit fee dependence and at the same time we control for the effects of non-audit service fee dependence post the 1989 mergers. We operationalise the exercise of independent judgement in auditing by the propensity to issue qualified audit opinions. If fee dependence affects auditors' independent judgement, then auditors are less likely to qualify the accounts. The study's results show that the level of auditor fee dependence does not affect auditor propensity to issue unqualified audit opinions. The findings remain robust to a number of sensitivity tests including the analyses controlling for the effects of non-audit service fee dependence and other settings in which there is heightened pressure on auditors to confront the effects of fee dependence on exercising independent audit judgement. (C) 2002 Elsevier Science B.V. All rights reserved.

It's all in the contract: Rethinking feminist critiques of contract

This article examines contemporary feminist arguments about contract. It does not aim to advance new arguments for or against contract but to call into question the dominant feminist position which is that contract has to be cast aside and/or that alternative approaches to contract have to be developed in order to advance the position of women. In a reworking of Elizabeth Kingdom's anti-essentialist approach to rights, Sullivan argues that a feminist but non-essentialist approach to contract is both possible and desirable. Sullivan explores a number of concrete situations in the Australian context where contract approaches have been deployed in law and public policy and demonstrates that contract may be detrimental or advantageous to the position of women. Sullivan argues, therefore, for a strategic and critical feminist approach to the utilisation of the language and practice of contract.

All's fair in love and war - but not contract

Changes to Queensland's unfair terms in consumer contracts expected - nature of the changes outlined - protections given to consumers, with respect to unfair contracts, in Victoria and the United Kingdom.

Workplace familism and psychological contract breach in the Philippines

The present study addresses the call for theory-based investigations on workplace familism. It contributes to the literature by proposing and testing the moderating role of workplace familism between psychological contract breach and civic virtue behaviour. We surveyed 267 full-time employees and found main effects of both types of workplace familism (i.e. workplace organisational and workplace supervisor familism) and breach of relational obligations on civic virtue behaviour. Workplace supervisor familism also moderated the relationship between breach and civic virtue behaviour, with the negative relationship between breach and civic virtue behaviour stronger when workplace supervisor familism was high. This suggests that employees with a high level of workplace supervisor familism may feel a sense of betrayal and, therefore, respond more negatively to contract breach. Implications for practice and directions for future research are discussed.