The Henry Report and the taxation of work related expenses: principles versus practice

types: ArticleFinal version published in Journal of Finance and Management in Public Services, available at http://www.cipfa.org/policy-and-guidance/the-journal-of-finance-and-management-in-public-servicesThe Henry Report on the future of the Australian tax system examined many areas of relevance to tax systems in general. One was the tax treatment of employment expenses. The Henry Report recommended that a new test should be introduced to narrow the definition of deductible employment expenses and that this test might be similar to the approach taken in the UK. In the light of the basic principles of the issue, this paper examines the reasons for the recommendation and the extensive experience of the UK arrangements. The situation in New Zealand is also examined as another approach. Finally a possible solution is suggested

But everyone else is doing it: A closer look at the occupational taxpaying culture of one business sector

When individuals embark on their careers they not only become acculturated into their occupational sectors' day-to-day norms and practices, but also their taxpaying ones. Although the research on taxpaying cultures is still in its infancy, understanding more about taxpaying cultures could improve our understanding of the processes underlying tax compliance. To this end, this study aimed to build a detailed picture of the taxpaying culture (i.e. the norms and values) of one business sector—the hairdressing/beauty industry. Nineteen small business and self-employed hairdressers/beauticians were interviewed and a variant of Grounded theory was used to uncover the main themes that ran through the interviews as a whole. The main themes that emerged—which appear to characterize this sector's culture—include a reliance on accountants/tax advisors, the notion of an acceptable level of cash-in-hand payments, and the use of different mental accounts for different types of income. Although some of these themes have already arisen in the small business literature they have often been couched in individualistic terms. We build a case that these issues are more cultural than individual—they are tied to occupational group membership as they are socially constructed within occupational groups and are a key component of the group's taxpaying culture. Implications and directions for future research are discussed

The Potential "Lock-In" Effect of the Proposed Capital Gains Tax

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Tax simplification: a review of initiatives in Australia, New Zealand and the United Kingdom

Final published versionThis paper examines the role of tax simplification in the operation of a tax system as a whole and then uses that framework to analyse initiatives in Australia, NZ and the UK. We begin with the subject of simplification itself and what it can mean, and follow this with a discussion concerning how to simplify tax systems. The paper then focusses on three key steps with simplifying tax systems, namely: simplifying tax law, simplifying taxpayer communications and simplifying tax administration. The paper then examines several long term approaches to simplification, such as the Office for Tax Simplification in the UK and the TWG in NZ. The paper observes the contrasting approach of Australia, such as pre-filling tax returns, which has not simplifed its tax system. Prior to the concluding observations, the paper suggests that the establishment of some form of independent authority may enable effective simplification of the tax systems in the three jurisdictions reviewed

The Henry Report and the taxation of work related expenses: Principles versus practice

The Henry Report on the future of the Australian tax system examined many areas of relevance to tax systems in general. One was the tax treatment of employment expenses. The Henry Report recommended that a new test should be introduced to narrow the definition of deductible employment expenses and that this test might be similar to the approach taken in the UK. In the light of the basic principles of the issue, this paper examines the reasons for the recommendation and the extensive experience of the UK arrangements. The situation in New Zealand is also examined as another approach. Finally a possible solution is suggested

Tax law improvement in Australia and the UK The need for a strategy simplification

SIGLEAvailable from British Library Document Supply Centre-DSC:3597.8932(98/03) / BLDSC - British Library Document Supply CentreGBUnited Kingdo