Exempt treatment of financial intermediation services under a value-added tax: an assessment of alternatives

Most countries with a value-added tax (VAT) exempt financial intermediation services from the tax. While exemption is generally perceived to be undesirable, it is also widely regarded as unavoidable because of technical difficulties in applying VAT to these services. This article reviews the standard rationale for exempt treatment and then considers the relative merits of two recent challenges raised in the tax literature. The first challenge involves the application of cash flow taxation to financial intermediation services in a manner that is consistent with an invoice/credit VAT (which is the dominant form). The second challenge proposes a comprehensive system of zero-rating of financial intermediation services, which is supported by a characterization of the household consumption of such services as non-taxable. The author argues that each of these alternatives to an exemption system suffers from both theoretical and practical implementation difficulties that make maintenance of exempt treatment the preferred approach, at least in the short term. There is, however, a simpler alternative to these fundamental reform options, involving modification of just one aspect of an exemption system to relieve some of its more problematic aspects. Many of the interpretative problems and associated inefficiencies that plague an exemption system arise from the need to distinguish between taxable and exempt financial services. The author argues that these difficulties can be eliminated, to a large extent, by basing the distinction on the form of prices. In support of this approach, he points out that it is consistent with the underlying reasons for the application of exempt treatment. The author considers a number of other possible modifications, but these are either rejected outright or viewed with a healthy skepticism. For example, the author is critical of the apparent rationale for the application of cash flow taxation to property and casualty insurers. He also rejects proposals that accept some looseness in the formulaic allocation by financial intermediaries of the costs of business inputs between exempt and taxable services for input credit purposes. In his view, an explicit reliance on pricing structures to draw the boundary between exempt and taxable services is preferable to the provision of relief for blocked input tax credits of financial intermediaries. Finally, the author is skeptical of the case for a policy response intended to address the tax bias under an exemption system for financial intermediaries to insource supplies.

The impact of computer-assisted learning on academic grades: an assessment of students' perceptions

This study examines student perceptions of the usefulness of Computer-Assisted Learning (CAL) packages in learning accounting concepts in terms of the influence on academic performance. Various additional factors  affecting academic performance [such as gender, prior studies of  accounting, and computer systems, together with entry background] are incorporated in the development of a multiple regression model, together with perceptions of CAL. The study uses a sample of 280 second-year undergraduate accounting students from an Australian university to test the model. In contrast to prior studies (e.g. Lane and Porch, 2002, Accounting Education: an international journal, 11(3), pp. 217-233), this study showed that positive perceptions of the usefulness of CAL significantly influenced performance. Additionally, it was found that international students, many of whom enter university at the second year level having obtained advanced standing credits, had significantly poorer performance than local students. The findings show that gender, prior studies of accounting and computing systems were not significant influences on academic performance. Overall, the results have implications for accounting educators utilising CAL in courses as a means of improving students' understanding of accounting concepts and academic performance.

Environmental benchmarking of Hong Kong buildings

A method for assessing the environmental performance of Hong Kong’s buildings has been developed, known as the Hong Kong Building Environmental Assessment Method or HK-BEAM. The assessment is a type of expert-based survey, either of the design, in the case of proposed buildings, or an evaluation of building performance for newly built or existing buildings. The assessment essentially provides a benchmark of environmental performance against a series of qualitative and quantitative measures that earn “credits”. Buildings can be rated as “excellent”, “very good”, “good” or “fair”. The assessment covers global, local and indoor issues. The original assessment has been in use since 1996 and allowed appraisal of new and existing air-conditioned offices. A new version has been recently produced for residential buildings. The latest version has addressed some of the criticisms of the earlier versions and covers a wider range of issues, taking a life-cycle approach. Reviews the latest new residential version, making comparisons with the earlier new offices scheme.

The role of computer assisted learning packages in determining learning outcomes of accounting students

This study examines the factors affecting student performance in an undergraduate financial accounting course, utilising Computer Assisted Learning (CAL) and use of a commercial software package. Multiple regression analysis was undertaken to examine the influences of perceptions of CAL and QuickBooks Pro, together with background variables such as gender, entry pathway and prior knowledge had on student performance. The results show that perceptions of CAL together with entry pathway were significant predictors of student performance. However, perceptions of the ,usefulness of QuickBooks Pro, prior studies of accounting and computing, together with gender, were not significant influences on performance. In terms of entry pathway it was found that International students, many of whom entered the university at the second year level having obtained advanced standing credits, had significantly poorer performance than local students. This result may be attributed to transitional problems experienced by these students, given their different pathways to university study.

The results have implications for accounting educators utilising CAL in courses as a means of improving students understanding of accounting concepts. The study also provides reflections on the use of CAL and a commercial software package as a means of providing efficient and effective educational instruction to maximise learning outcomes in accounting.

Biopharmaceutical innovation and industrial developments in South Korea, Singapore and Taiwan

South Korea, Singapore and Taiwan are well known as export-oriented developmental states which for decades employed industrial policy to target particular industries for government support. In the past fifteen years, these three countries all identified the biopharmaceutical industry as a strategic sector. This article explores, through economic analysis, the rationale for this decision and the strategies chosen for linking into the global bio-economy with the objective of catching up in biopharmaceuticals. The paper identifies three comparative advantages enjoyed by these countries in the biopharma sector: (1) public investments in basic research; (2) private investments in phase 1 clinical trials; and (3) a potentially significant contract research industry managing latter-stage clinical trials. Governments employ a range of industrial policies, consistent with these comparative advantages, to promote the biopharmaceutical industry, including public investment in biomedical hubs, research funding and research and development (R&D) tax credits. We argue that the most important feature of the biopharmaceutical industry in these countries is the dominant role of the public sector. That these countries have made progress in innovative capabilities is illustrated by input measures such as R&D expenditure as share of gross domestic product, number of patents granted and clinical trials, and volume of foreign direct investment. In contrast, output indicators such as approval of new chemical entities suggest that the process of catching up has only just commenced. Pharmaceutical innovation is at the stage of mainly generating inputs to integrated processes controlled by the globally incumbent firms.

Reviving the role of regulators in Bangladesh capital market

The capital market is visualised as a tool for economic development through mobilisation of scattered resources and their allocation to appropriate areas. The liquidity, solvency and efficiency of the economic system of a country can be better accomplished by capital market, when the banks and financial institutions of the country are reluctant to provide long-term and medium term resources for industrialisation and privatisation.

Banks have been traditionally major sources of all types of credits particularly industrial credits. Not only the banks these days are restricted to finance long-term credits due to short-term nature of the deposit- base of these banks, but also are struggling to overcome their liquidity problems. On the other hand, the development of financial institutions, the traditional suppliers of the long-term funds for private industry, is lying dormant due to the problems of profitability, liquidity and solvency of these institutions. Under this circumstances, the capital market beckons as the only major source of finance for industrialisation and privatisation. But the existing state of the capital market is hardly in a position to play as the mobiliser of resources for economic development.

Therefore, the country`s capital market needs structural change as well as proper regulation which are likely to improve the confidence of investors-both local and foreign and to boost the functions of capital market as well. The major regulators in Bangladesh capital market are Securities and Exchange Commission (SEC), Stock Exchanges, Registrar of Joint Stock Companies (RJSC) and ICB. In addition, the government has recently given permission to set up merchant banks to provide their support towards the growth, development and consolidation of capital market.

Environmental migration and capital mobility

Based on utility equalization, this paper considers a developing economy with labor migration. Pollution and capital taxes are imposed on producers in the polluted sector. The optimal policy combinations of capital taxes and pollution taxes for the host economy are examined. A zero capital tax is required for increasing mobility of capital to raise real GDP, while a larger than Pigovian pollution tax is needed for enhancing environmental amenities. The impacts on those two optimal tax rates are examined theoretically and numerically if foreign countries adopt higher environmental standards or if foreign countries impose tax credits on foreign investments.

Assessment of credit arrangements towards engineering programs/courses

Credit Transfer (CT), Advanced Standing (AS), Credit for Prior Learning (CPL), Recognition of PriorLearning (RPL), Prior Learning Assessment and Recognition (PLAR), Accreditation of PriorExperiential Learning (APEL), Validation of Prior Learning (VPL), Prior Learning Assessment (PLA),Credit Transfer and Recognition (CTR), Recognition of Current Competency (RCC) and Credit forConcurrent Formal Learning (CCFL) are the terms used by academic institutions and engineeringschools to describe several types of credit arrangements depending upon a student’s current state ofqualification, experience, skills and knowledge towards the requirement of his/her formal professionalengineering qualification. The objectives of such credit arrangements are to make sure that thelearning is not duplicated, to reduce the duration and cost of the engineering studies, to encourageworking engineering associates and technologists return to engineering schools for professionalengineering qualification and to help upgrade the skills and knowledge of the junior engineeringpractitioners, to name a few. Formal, informal, non-formal or a combination of prior learning are usedfor such credit arrangements. Engineering schools offer block credit, specified credit, unspecifiedcredit and a combination of these forms of credits when recognising prior learning of any form.However, anecdotal and literature evidence suggests that the assessment of credit arrangementslacks established universal framework for assessment, lacks harmonisation, compatibility,transparency and comparability and is complex and inconsistent resulting a significant variations in theassessment for recognising prior learning across engineering schools in spite of being based onsimilar fundamental principles. There is a clear need of a consolidated framework in order to assesscredit arrangements systematically and consistently.PURPOSEThe purpose of this study is to develop a consolidated framework for assessing credit arrangementstowards a partial requirements of a professional engineering course, program, degree or qualification.The developed framework is expected to help manage the assessment of credit arrangement process.APPROACHThis study first critically reviews existing frameworks and literature evidences regarding the principlesof credit arrangements towards a partial requirements of a professional engineering course, program,degree or qualification. This study then uses evidence-based literature knowledge (principles,processes and practices) to devise a consolidated framework for assessing credit arrangements. Theframework is then expanded in order to elaborate its several components.RESULTSThe existing frameworks and literature review suggest that for better assessment of creditarrangements, attentions are to be given on the forms of prior learning, types of credit arrangements,forms of credit recognition, required documents, characteristics of the prior learning, alignment of priorlearning with professional engineering qualification and additional aspects.CONCLUSIONSAs the assessment of credit arrangements has been a major challenge for engineering schools, theframework developed in this study is expected to help engineering schools to manage the assessmentprocess systematically and consistently. For further study, the framework needs to be continuouslyimplemented, monitored and evaluated.