Global profit split: An evolutionary approach to international income allocation

International taxation is concerned mainly with the equitable allocation of cross-border income between countries in which income-earning activities take place. Such allocation has traditionally been governed by the arm’s-length principle, which has been interpreted as requiring a comparable transactional pricing approach. This approach assumes that each member of a multinational enterprise (MNE) group is a separate entity and that the transactions between related parties can be separated and compared with arm’s-length transactions. It has, however, proved difficult to apply comparable transactional pricing to internationally integrated businesses, especially those involving intangibles and services, and formulary apportionment has been suggested as an alternative. Essentially, formulary apportionment treats the MNE group as a single economic entity. The group’s profit is allocated to members according to a formula that reflects the particular member’s contribution to the production of that profit. A rich academic literature exists which either defends or attacks this alternative approach. The OECD and national governments have rejected formulary apportionment mainly on the ground that it violates the arm’s-length principle. This article proposes a global profit split (GPS) method for allocating international income. The GPS would allocate the global profit of an integrated business to each country in accordance with the economic contributions made by components of the business located in that country. The allocation would be based on a formula that would reflect the economic factors that contribute to profit making. While the GPS draws on elements of the traditional formulary apportionment and profit split methods, it also differs from them. The author discusses in detail the key issues involved in designing the GPS. She also presents and evaluates the main policy and pragmatic justifications for the adoption of this innovative approach. The author argues that the GPS is not only theoretically and practically superior to traditional income allocation methods, but also consistent with the arm’s-length principle. On the basis of historical developments, interpretation of article 9 of the OECD model tax convention, and international tax policy considerations, the author establishes that the GPS is not a radical departure from the arm’s-length principle, but rather a natural development in its evolution. She concludes that the law of evolution ison the side of reform because the GPS would provide for a fair and effective allocation of income derived from globally integrated business activities.

Managing heritage in the wake of war and conflict in Cyprus

In the wake of a Greece-inspired coup against the Greek Cypriot President of Cyprus in 1974, the Turkish military occupied the northern third of the island and continues to do so. Ethnic communities are still separated: Greek Cypriots moved to the south and Turkish Cypriots to the north. This paper covers issues raised by the bi-communal conservation projects resulting from the European Union’s Partnership for the Future Programme being implemented by the United Nations Development Programme. The projects require co-operation between mutually distrustful, fearful and disdainful communities for the sake of common objectives – social and economic wellbeing. Cyprus has apparently opted for conflict management rather than resolution, with both sides focused on achieving prosperity. Heritage conservation has become a tool for peaceful co-existence and mutual pride. Initially the projects involved places of shared heritage rather than places reinforcing the separate cultural identities of the communities. Loss of cultural identity is a concern of both communities. Ongoing operational issues derive from the illegality of the Turkish government in the north and the repercussions of this for international aid. The paper will contribute to the conference theme by exploring the professional challenges related to these issues and their possible resolution.

Operation of guardianship laws in the emergency ward

Enduring and workable legislative schemes typically include (a) a balanced approach to the rights and duties of all parties under their purview; and (b) consideration of all major consequences that may flow from the codification of underpinning doctrines. This column examines the 1999 amendments to the Guardianship and Administration Act 1986 (Vic) regulating patients’ consent to medical treatment focusing on their application in modern emergency departments. The legislation needs to reconcile the human rights principle that humane and appropriate treatment is a fundamental right of all those who suffer from ill health and disease, with the principle that all patients (including those with impaired, but not totally absent, decisional capacity) have an absolute right to refuse life-saving treatment. Consent and refusal of treatment provisions should be based on the notion of reasonableness, including recognition that the mental and emotional states experienced by physically ill people may, in the short term, adversely affect their decision-making capacity. Unless the consent legislation factors in the realities of modern emergency practice and resources, statutory thresholds for decisional competence, instead of affording protection, may result in much worse outcomes for vulnerable patients.

As if the future matters : teaching design for sustainable communities

Between 2007 and 2010 a series of intensive annual field trips took around 100 predominantly city-based Australian and international students from The University of Adelaide into rural communities (numbers ranged from 82 in 2007 to 105 in 2009). Country areas/towns (rather than the city) were chosen because in them issues of sustainability are ‘in your face’ and much clearer for students to comprehend than in the city. The trips required co-operation between the respective communities, the School and the students. The organization required for this number of students was time-consuming and prone to disruption, and the series ended when the principal organisers moved on to new positions and the School reverted to less time-costly modes of teaching. This paper provides a retrospective insight into the series of field trips and examines their educational and professional value for the participants – students, staff and communities. We begin by describing the aims of the course and argument for an immersive educational approach, then present the logistics and process for the field trips, discuss the outcomes for the stakeholders, and finally present some conclusions.

International human resource management strategies of Chinese multinationals operating abroad

Strategic international human resource management (SIHRM) is crucial for the effective leveraging of human resources in organizations to achieve the desired business strategies. There is a rich collection of studies on western multinational corporations (MNCs) in China, but few studies that explore the SIHRM of Chinese MNCs operating overseas. This study utilizes cross-level, in-depth interviews to analyse SIHRM of three large Chinese multinationals. The paper contributes to literature by addressing two contextual SIHRM issues, namely the characteristics of the SIHRM for Chinese multinationals and how their SIHRM orientation facilitates their international investment and operation. The findings indicate that organizational transformation is the starting point for latecomers matching their international HRM strategies. Their SIHRM approaches, such as forming learning organizations, reliance on host-country nationals, reconciling both home and host-country effects and promoting ‘best practices’, facilitate their international operations.

Australia and Japan after the second world war: constructing new futures in Asia

The subject of my lecture is Australian-Japanese relations since the end of the Second World War, but I’m keen to explore these relations in the context of ideas, efforts and practical results in relation to collaborative and other efforts towards regionalism in the Asia Pacific. My general argument is that, on the one hand, Australian-Japanese relations have developed with a strength that would have been hard to imagine in 1945, and with an important focus on regional growth and security. The incremental steps taken may have been small and at a steady pace but, given the legacy of deep scars resulting from the Second World War and given the limitations on the defence aspects of Japan’s postwar involvement in regional affairs (ie the self defence requirement of the Constitution and the practice of spending not more than one per cent of Gross National Product on defence), these have been very successfully negotiated steps. On the other hand, there are some opportunities for greater joint leadership in the region which may or may not be realized. The incremental steps took place in difficult and changing circumstances; and what I would like to do now is remind us of how many unknowns attached to what might happen in Australian- Japan relationships after the Second World War, partly because there were so many unknowns about how the post-war international order would settle, and partly because Australian-Japanese relations started from such a desperately low point. I will try to walk through some of the key features of different periods, as I see the periodisation logically falling out after the war, and draw some thoughts together in relation to more recent initiatives on regional and bilateral co-operation. My training is as a historian, and that shapes the way this lecture works, and for most of my career I have been an Australian historian of international relations, looking particularly at Australia’s changing role in world affairs, and that is also likely to show in what follows－possibly at the expense of greater detail from Japanese perspectives. But I hope you will understand that, and also the limitations involved in trying to paint with a broad brush on a huge historical canvas.

Policy as assemblage

In this article, the author tells the story of her search for appropriate tools to conceptualise policy work. She had set out to explore the relationship between the Programme for International Student Assessment (PISA) of the Organisation for Economic Co-operation and Development (OECD) and Australia’s education policy, but early interview data forced her to reconsider her research question. The plethora of available models of policy did not satisfactorily accommodate her growing understanding of the messiness and complexity of policy work. On the basis of interviews with 18 policy actors, including former OECD officials, PISA analysts and bureaucrats, as well as documentary analysis of government reports and ministerial media releases, she suggests that the concept of ‘assemblage’ provides the tools to better understand the messy processes of policy work. The relationship between PISA and national policy is of interest to many scholars in Europe, making this study widely relevant. An article that argues for the unsettling of tidy accounts of knowledge making in policy can hardly afford to obscure the untidiness of its own assemblage. Accordingly, this article is somewhat unconventional in its presentation, and attempts to take the reader into the messiness of the research world as well as the policy world. Implicit in this presentation is the suggestion that both policy work and research work are ongoing attempts to find order and coherence through the cobbling together of a variety of resources.

Quo iure? Defendants' liability to rescuers in the tort of negligence

The year 2001 marks the 80th anniversary of Cardozo J's judgment in Wagner v International Railway Co 232 NY 176 (1921). This article examines theoretical and procedural problems associated with the concept of duty of care as a foundation for the defendant's liability in negligence to altruistic rescuers, and suggests that Cardozo J's judgment did not establish the principle that defendants owe rescuers a duty of care in negligence. It is argued that subsequent judgments failed to provide the duty of care owed to rescuers under tortious negligence with proper jurisprudential foundations. Conceptual difficulties inherent in a jurisprudential principle that would provide physically injured rescuers with a legal right to a duty of care from the defendant under the tort of negligence were compounded once compensation for negligently occasioned pure emotional distress became available. This article analyses various theories of recovery for pure psychiatric injury and the classification of rescuers into primary and secondary victims. It proposes a solution in the form of a separate cause of action on the case for liability to injured rescuers, partly based on the principle of necessity that governs the Roman action for negotiorum gestio. Cases from the United States, England and Australia are used to illustrate the similarities and differences in the development of and approaches to, the law of rescue.

A linkage measure framework for the real estate sector

Linkage is one of the most important factors for gaining competitive advantage. Information on linkages is essential to understanding the structure of an economy, which is in turn important in formulating industry policies and business strategies. The hypothetical extraction method is used to measure the linkages by extracting a sector hypothetically from an economic system in the literature. In the previous research, however, the internal linkage (linkage within a sector) and sectoral linkages (linkage between two specific sectors) are ignored, and there is not a comprehensive framework to measure the linkages of a specific sector. Using the recently published Organisation for Economic Co-operation and Development input-output database at constant prices, this paper aims to resolve these two shortcomings and thereby propose a linkage measure framework to explore the linkages between the real estate sector and other sectors from a new angle. The relative and absolute linkages are termed and the total, backward, forward, internal and sectoral linkage indicators are formulated to investigate the linkages of the real estate sector from all directions. Empirical results show an increasing trend of these linkages, which confirms the increasing role of the real estate sector with economic maturity over the examined period. This framework also can be employed in other sectors.

Managing contactability in telephone surveys

The Australian market research industry relies on telephone interviewing as one of its major data collection methods. Through Its LIST initiative, the industry has committed to best practice In research methods in order to address various concerns, especially the decline in response rates for telephone interviews. Response rates are determined by the co-operation of eligible respondents and their degree of contactabllity. The reported study is concerned with the way the industry attempts to manage contactabiIity. A study of fieldwork managers responSible for over 75% of all phone interviews in Australia revealed a limited use of contact enhancing strategies such as longer fieldwork periods and more callbacks. Commercial imperatives for timely surveys and a lack of end-user concern for response rate issues, along with cost issues, were believed to be responsible.

Linkage measures of the construction sector using the hypothetical extraction method

The hypothetical extraction method (HEM) is used to extract a sector hypothetically from an economic system and examine the influence of this extraction on other sectors in the economy. Linkage measures based on the HEM become increasingly prominent. However, little construction linkage research applies the HEM. Using the recently published Organisation for Economic Co-operation and Development input-output database at constant prices, this research applies the HEM to the construction sector in order to explore the role of this sector in national economies and the quantitative interdependence between the construction sector and the remaining sectors. The output differences before and after the hypothetical extraction reflect the linkages of the construction sector. Empirical results show a declining trend of the total, backward and forward linkages, which confirms the decreasing role of the construction sector with economic maturity over the examined period from a new angle. Analytical results reveal that the unique nature of the construction sector and multifold external factors are the main reasons for the linkage difference between countries. Moreover, hypothesis-testing results consider statistically that the extraction structures employed in this research are appropriate to analyse the linkages of the construction sector.

Feel blue? Touch green! Participation in forest/woodland management as a treatment for depression

Recent research by a team from Deakin University explored the health and wellbeing benefits of civic environmentalism – voluntary communal actions undertaken to promote ecosystem sustainability, typified by membership of a ‘friends of parks’ group. The research confirmed what was known intuitively: that belonging to such a group and undertaking the activities associated with such a group exposes people not only to the benefits of the natural environment, but also to other people and to opportunities to make a contribution which is socially valued.

On the basis of those findings, a pilot project involving intentional engagement of people suffering depression and related disorders in supported nature-based activities in a woodland environment is being implemented and evaluated. This article reports on that project and discusses the implications of its findings to date, and the findings of the three earlier projects, both for urban woodland/forest managers and for the health sector.

As this contribution indicates, there appears to be potential for the use of civic environmentalism to promote health, wellbeing and social connectedness for individuals and the wider population, as well as for groups with identified health vulnerabilities. However, the realization of the benefits of such an approach will be dependent on co-operation between the environment and health sectors to create and promote opportunities for increased civic environmentalism, and to identify and address the barriers to their effective use.

Economic analyses on multinational real estate and construction sectors

Both the construction and real estate sectors have been considered vital productive drivers for the economic development of a nation. Multinational economic analyses on these two sectors over a long period enable a better comprehension of their effects and interrelationships. Based on the recently published Organisation for Economic Co-operation and Development (OECD) input-output database at constant prices, this paper compares the real estate and construction sectors of six countries in terms of their shares in gross national product and gross national income. The push and pull effects of these two sectors onto the whole economy are further determined using forward and backward linkage indicators respectively. In addition, the interactions between themselves are formulated in terms of direct and total input parameters. This research provides a numerical approach to examine the economic influences and sectorial correlation of the real estate and construction sectors.

Procedural trained, procedural remain : the first report from 'A census of doctors who have been awarded the Graduate Diploma in Rural General Practice (GDRGP)'

Aims & rationale/Objectives : To document the practice of initial cohorts receiving the Graduate Diploma in Rural General Practice
Methods : With the co-operation of the National Rural Faculty (NRF) of Royal Australian College of General Practitioners (RACGP), a census by questionnaire was conducted on 279 graduates. The response rate was 70%.
Principal findings : The target doctors are young (65% < 40 years old). Under half (42.3%) have completed Advanced Rural Skills terms in >1 discipline. Of the total 272 posts recorded from 174 respondents, the most popular advanced skill is anaesthetics, followed by obstetrics. The ARSP increased confidence in 96.3% of respondents. Two thirds of doctors trained in a procedural skill remain practicing procedural General Practice.
Discussion : The GDRGP was the qualification developed to recognise competency gained as a result of a series of rural training initiatives begun within the RACGP Training Program in 1992. Its delivery has continued under the new GPET Training Program. Outcomes from the range of initiatives leading to the GDRGP are currently emerging in an environment which has seen significant changes within vocational training, and within the context of a rising focus on indemnity. Doctors who undertook this training have mostly retained procedural practice. In addition, RACGP rural initiatives successfully achieved increase confidence prior to rural work in advanced areas of practice, with >95% reporting an increase.
Implications : Changes within vocational training were accelerated without analysis of existing initiatives such as the GDRGP. Funding for the GDRGP was, as a result, withdrawn prematurely. These changes also saw the entrant of a second College with an interest in rural procedural practice. This research show that the GDRGP offers, and offered, a clear vocational pathway that will guide a doctor to a career as a rural doctor, and provide them with the advanced skills they need to practice confidently in the bush. It is important to capitalise on past success before deconstructing professional concepts of practice further.
Presentation type : Paper

Sociocultural factors relating to Tongans' and Indigenous Fijians' patterns of eating, physical activity and body size

This paper reviews literature between 1974 and 2007 that addresses the impact of sociocultural factors on reported patterns of eating, physical activity (activity) and body size of Tongans and indigenous Fijians (Fijians) in their countries of origin. There have been changes in diet (more imported and fewer traditional foods), activity (reduced, especially in urban settings), residence (rural-urban shift) and body size (increased obesity and at a younger age). The prevalence of overweight/obesity in Tongans and Fijians has increased rapidly over the last two decades and remains among the highest in the world (>80% in Tonga; >40% in Fiji), with more females reported to be obese than males. The few studies that investigated sociocultural influences on patterns of eating, activity and/or body size in this population have examined the impact of hierarchical organisation, rank and status (sex, seniority), values (respect, care, co-operation) and/or role expectations. It is important to examine how sociocultural factors influence eating, activity and body size in order to i) establish factors that promote or protect against obesity, ii) inform culturally-appropriate interventions to promote healthy lifestyles and body size, and iii) halt the obesity epidemic, especially in cultural groups with a high prevalence of obesity. There is an urgent need for more systematic investigations of key sociocultural factors, whilst taking into account the complex interplay between sociocultural factors, behaviours and other influences (historical; socioeconomic; policy; external global influences; physical environment).