Moving personal tax online: the Australian Taxation Office's E-Tax initiative

In exploiting the capabilities of online technologies, governments have developed policies and launched projects to conduct transactions and deliver their services through the Internet. The motivations for this include cost cutting, efficiency improvements, service enhancements, and leadership in business transformation. However, these diverse goals are not necessarily consistent, especially in the early stages of implementation. The e-government initiative discussed in this case study (E-Tax) provided an additional service to individual Australian taxpayers by enabling them to file their tax returns online. This case study provides an analysis of the E-Tax implementation in the first three years of its operation. Data on E-Tax use compared to other filing methods show that the package worked well technically, was favorably received by users, and was consistent with policy on e-government. However, adoption levels in the early stages did not meet government targets. The analysis suggests that impediments to a greater level of E-Tax use included entrenched patterns of filing, the nature of the taxation system, and political sensitivities. The E-Tax case demonstrates how complex e-government projects can be and the need to take contextual factors into account in planning and evaluating e-government implementation.

Boom and bust in Australian screen policy: 10BA, the Film Finance Corporation, and Hollywood's 'race to the bottom'.

In recent years, a narrative has emerged in the Australian popular media about the box office 'unpopularity' of Australian feature films and the 'failure' of the domestic screen industry. This article explores the recent history of Australian screen policy with particular reference to the '10BA' tax incentive of the 1980s; the Film Finance Corporation of Australia (FFC), a government screen agency established in 1988 to bring investment bank-style portfolio management to Australia's screen industry; and local production incentive policies pursed by Australian state governments in a chase for Hollywood's runaway production.

We argue the 10BA incentive catalysed an unsustainable bubble in Australian production, while its policy successor, the FFC, fundamentally failed in its stated mission of 'commercial' screen financing (over its 20-year lifespan, the FFC invested 1.345 billion Australian dollars for 274.2 million Australian dollars recouped - a cumulative return of negative 80 percent). For their part, private investors in Australian films discovered that the screen production process involved high levels of risk.

Foreign-financed production also proved highly volatile, due to the vagaries of trade exposure, currency fluctuations and tax arbitrage. The result of these macro and micro-economic factors often structural and cross-border in nature was that Australia's screen industry failed to develop the local investment infrastructure required to finance a sustainable, non-subsidised local sector.

Australian films at large: expanding the evidence about Australian cinema performance

International markets have in recent years become a critical component of the business model for Hollywood cinema, opening up a renewed interest in the global dimensions of film diffusion. Smaller film-producing nations such as Denmark have similarly emphasised global distribution as a key component of the industry's success. Typically, however, claims for Australian film industry success rely almost exclusively on a film's domestic box office performance. This paper considers the possibilities for an expanded approach to measuring success and failure in the Australian film industry. Adopting analytic methods from cinema studies, cultural economics and geo-spatial sciences, this paper will examine the international theatrical circulation of Australian films using a unique global database of cinema showtimes. This data set captures all formal film screenings in 47 countries over an 18-month period ending 1 June 2014 and enables detailed empirical study of the locations visited by Australian-produced films. In conjunction with relevant box office data and contextual critical commentary, we propose a revised and expanded ‘film impact rating’ for assessing the reported performance of Australian films.

An examination of taxpayers' attitutes towards the Australian Tax System : findings from a survey of tax scheme investors

In recent years, the number of taxpayers involved in aggressive tax planning has more than doubled, posing a serious threat to the integrity of Australia's tax system. To deal with the problem, the Australian Taxation Office (ATO) implemented a number of initiatives aimed at combating aggressive tax planning. Part of the ATO's crackdown involved issuing amended assessments to the 42,000 Australians who invested in mass marketed tax schemes. The majority of investors, however, resisted the ATO's attempts to recover scheme related tax debts. This paper discusses the findings of an empirical study that shows that the resistance was due partly to the manner in which the ATO dealt with the schemes issue. Using survey data collected from 2301 tax scheme investors, and 2040 taxpayers from the general population, it will be shown that those who invested in tax schemes are more disillusioned with the tax system, are more hostile and resistant toward the ATO, and are more likely to resent paying tax as a result.

More than Ballyhoo? : The importance of understanding film consumption in Australia

We have all become used to reading stories filled with alarm and recrimination, or (more rarely) tentative optimism concerning the local production industry's percentage of the domestic box office. This blunt but exploitable indicator greatly simplifies the interaction between film product and its consumer.

Partner-scale economies, service bundling and auditor independence in the Australian self-managed superannuation (pension) fund industry

Using proprietary Australian Taxation Office (ATO) data, this study examines audit pricing, service bundling and independence issues in the self-managed superannuation fund (SMSF) sector, the fastest growing and largest segment of the Australian $2 trillion retirement savings industry. We consider the impact of partner-level scale effects for a large sample of SMSF audits for the three years to June 2010. After controlling for factors known to determine audit fees, we find evidence of fee discounting by partners with large client portfolios. However, when the dependent variable is redefined to the total 'bundle' of services (including audit and non-audit fees), the firms of partners with larger client portfolios are shown to earn bundling fee premiums. This finding suggests industry specialists price strategically using audits as a conduit to supply higher margin non-audit services (NAS) to clients with more resources. Last, we find no evidence the supply of NAS impairs auditor independence, alleviating joint supply concerns raised in the Cooper Review.

Isn't sport taxing? The taxation of sports professionals post-Agassi

In Agassi v Robinson (Her Majestyʹs Inspector of Taxes), a majority of the House of Lords found that payments under two sponsorship contracts between a company owned and controlled by Mr Andre Agassi, (Agassi Enterprises Inc) and Nike Inc and Head Sport AG were assessable under UK tax law. This was so despite (i) none of the parties to the contracts was resident, nor domiciled, in the United Kingdom and (ii) none of the payer companies conducted business, directly or indirectly, through branches/agencies in the United Kingdom. The article considers whether the Australian Taxation Office could similarly assess non‐resident sports‐persons, like Mr Agassi, personally, and/or entities they control, on payments made under sponsorship agreements with a company such as Nike Inc. While the preferable view is that such payments are not sourced in Australia, Australian source rules are so ill defined that there is some basis for asserting such payments are sourced in Australia.

A model for the implementation of strategic human resource management

This paper has been developed out of an action research project involving the Australian Taxation Office (ATO). One of the outcomes of this project was the development of a model for the implementation of Strategic Human Resource Management (SHRM) for the purpose of cultural change and/or alignment to business strategy.

The paper brings together many of the theories that have arisen in SHRM in the last decade or so, including theories around human capital, the resource-based view, HR configuration, HR architecture, vertical and horizontal fit, HR systems and HR roles.

Enforcing tax compliance : to punish or persuade

A long standing debate has existed between those who believe deterrence-based enforcement strategies work for gaining compliance from offenders and those who believe gentle persuasion and cooperation is more effective. This article is concerned with the issue of how to best deal with offenders so as to increase support for the law and lower the rate of subsequent re-offending. Using survey data from 652 taxpayers who have been through an enforcement experience with the Australian Taxation Office, the present study will show that depending on how an enforcement experience is perceived by offenders (as either stigmatic or reintegrative in nature) can influence the feelings of resentment they experience, but more importantly these feelings of resentment mediate the effect of punishment on subsequent compliance behaviour. In other words, it is these feelings of resentment in response to disapproval that go on to predict who will and will not comply with their subsequent obligations under the law.

The taxpayers'€™ charter : a case study in tax administration

The Australian Taxpayers'€™ Charter was introduced in 1997 and a revised version in November 2003. This is therefore an appropriate time to review the contribution of this initiative. This article traces the development of such modern charters and then specifically the development of tax charters. The Australian Taxpayers' Charter and the Australian Tax Office'€™s ("€œATO"€) experience with it are then examined. Among other possible advantages, the Charter may be used as a measure of the ATO'€™s performance. Taxpayers’ views regarding the extent to which the ATO meets its obligations under the Taxpayers'€™ Charter, as expressed in two surveys of Australian voters (N = 2,040 and 2,374), are presented. Generally the taxpayers are supportive. The results of the survey also support the ATO'€™s view that the Charter fits in with compliance policy. Finally, the Charter demonstrates how initiatives in tax administration might he successfully achieved.

The citizen's charter : how such initiatives might be more effective

In Public Policy and Administration Taylor (1999) concluded that the charter system was inadequate to safeguard consumers’ and citizens’ interests and that they would have to have a greater input to ensure success. Following its introduction in 1991, the Charter initiative certainly made an impact and by 1997 there were 40 main charters and perhaps 10,000 local ones. However since then the original Citizen’. Charter has, in the words of one commentator, ‘perished, or at least atrophied’ Drewry (2002, p.12). There is little doubt that it could have been more effective. For example, tax charters seem to have had more success - indeed the UK Taxpayers’ Charter pre-dates the Citizen’. Charter, having been introduced in 1986. This paper therefore reviews the Charter initiative in the light of the development of tax charters and describes a particularly successful one - the Australian Taxpayers’ Charter - that continues to provide a clear focus on twelve basic principles of tax administration. An important factor in the Australian success appears to be the more strategic approach taken with respect to the implementation, monitoring and development of its Taxpayers’ Charter. The paper also presents relevant results of two surveys (N = 2,040 and 2,374) on the extent to which Australian voters consider the Australian Tax Office adheres to the principles outlined in the Charter. The evidence is consistent with Taylor’. (1999) views and concludes that initiatives such as the Citizen’. Charter would benefit from more strategic or systematic preparation that incorporates the views and expertise of a wide range of stakeholders before being introduced and for the initiative to become an integral part of the approach to standards of service thereafter.

Procedural justice and tax compliance

Throughout the 1990s, tens of thousands of Australian taxpayers invested in mass-marketed tax effective schemes. They enjoyed generous tax breaks until the Australian Taxation Office (ATO) told them in 1998 that they abused the system. This study examines the circumstances surrounding taxpayers' decision to invest in scheme arrangements. It also explores investors' perceptions of the way the ATO handled the schemes issue and, perhaps more importantly, why such a large number of investors defied the ATO's demands that they pay back taxes. Data were taken from in-depth interviews conducted with 29 scheme investors. Consistent with the procedural justice literature, the findings revealed that many of the scheme investors interviewed defied the ATO's demands because the procedures the ATO used to handle the situation were perceived to be unfair. Given these findings, it will be argued that to effectively shape desired behaviour, regulators will need to move beyond enforcement strategies linked purely to deterrence. A strategy that aims to emphasise the procedural justice aspects of a regulatory encounter will be discussed.