Volume 24, Issue 1

EDITORIAL

The 2022 issue of the Journal of Australian Taxation is contained in Volume 24 and consists

of five articles covering a wide range of taxation topics. The year 2022 was still a difficult

year with the COVID virus continuing to have an impact on those engaged in researching

taxation law. Many academics and practitioners were experiencing lockdown and related

fatigue. The Editor is grateful for the contribution made by the authors in this edition of the

journal, especially Professor Freudenberg for his ongoing support of this journal. Dr John

Minas from Curtin University has accepted a role as joint editor of the journal, and he will be

active in promoting the journal and encouraging tax academics to contribute in 2023 and

beyond.

The first article by Melissa Belle Isle, Brett Freudenberg and Tapan Sarker examined the

outcome of the data collected from 23 small business experts to understand in more depth

what aids or hinders an increase in small business owners (SBO) literacy. The article

provides a broad summary of the importance of the three literacies for small businesses,

namely the importance of cash flow management concerning the SBO’s literacy of financial

statements, computer accounting software (CAS), and business tax. The authors clearly

demonstrate through their research that these literacies are important in the management of

the cash flow of the business. The surveys explored what may aid or hinder the development

of these literacies for SBOs through the interview of small business experts. From these

interviews a number of key inhibitors were identified including time, lack of business

acumen, low training, cost, and the focus on producing business records for tax compliance

rather than management practices. From these findings, the authors were able to provide

recommendations that could assist SBOs to improve their understanding of these three

important areas.

The second article is written by Alexander Fullarton and Dale Pinto contend that the

Australian Taxation Office (ATO) practice of issuing opinions and taxation rulings for the

guidance of taxation practitioners compiling and submitting taxation returns does not always

result in greater clarity or certainty in the application of taxation laws. To illustrate that

argument the paper addresses the example wherein the ATO considers all animals used in a

business of primary production as trading stock. Their view is based on their interpretation of

the findings in the appeal case of Federal Commissioner of Taxation v Wade. The paper is

based on the Wade case which shows that the issue of how livestock should be treated for

taxation purposes may in fact be wrong. Some agricultural animals may in fact be capital

such as breeding stock and that they should not be treated as trading stock and on the revenue

account. It should be noted that the authors when referring to the Live Stock Schedules in

accounting form, as presented in Wade’s income tax return, used the words as they are

referenced, that is ‘Live Stock’ Schedule. Two words. At other times ‘livestock’ is one word.

The third article is written by Su Yee Liew, Chee Keong Choong and Lin Sea Lau and they

surveyed 384 respondents consisting of individuals and small to medium enterprise (SME)

owners to gauge the effectiveness of the Malaysian electronic tax filing system (e-filing), the

administration of the taxation system with tax compliance as the mediator. The study

investigated the impact of e-filing and the effectiveness of tax administration on tax revenue

in Malaysia, which is crucial for the government and the nation.Resultantly, tax compliance4

fully mediated the relationship between the effectiveness of tax administration and tax

revenue. Thus, the study presented a significant contribution to developing a new concept of

tax compliance regarding tax administration and tax revenue, which had not been

investigated.

The fourth article is written by several tax teachers involved in the management and

supervision of students in their respective university tax clinics. This article provides an

excellent examination of the role of the National Tax Clinic program and the benefits

provided to students working in the tax clinics. They are Annette Morgan, Brett Freudenberg,

Ann Kayis-Kumar, Van Le, Rob Whait, Michelle Cull, Donovan Castelyn and Connie Vitale.

The article provides a broad summary of Work Integrated Learning (WIL) and its

relationship with self-efficacy, and how the tax clinics established under the National Tax

Clinic Program have enabled the development of self-efficacy. Their research found an

increase in self-efficacy, with particularly strong growth in communication, coordination of

group tasks, presenting ideas and researching tax issues among student participants.

Moreover, through analysing student demographic data, the study identified key differences

within gender, age, and prior work experience.

The fifth article is written by Alexander Fullarton and Dale Pinto and builds on their previous

article included in this edition of the journal. The authors argue that the practice of accepting

ATO opinions without challenge can have extremely significant fiscal impacts on taxpayers

and tax collections. The authors warn that tax practitioners should not always consider that

the rulings, determinations, and advice provided by the ATO give the greater clarity and

certainty in the preparation and lodgement of taxation returns and the payment of tax that are

sought by practitioners. Tax agents are duty bound to take reasonable care to ensure that

taxation laws are applied correctly to the circumstances in relation to which they are

providing advice to a client, and in that context this article asserts that agents should not

accept that the ATO’s view on a matter is unquestionably correct. Further, it is noted that,

while the ATO provides guidance and views, their written advice usually contains a statement

to the effect that they are for guidance only and may not be binding in a court. Their written

opinions often include a specific disclaimer.

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Volume 24, Issue 01