There has recently been some uproar in the Australian press about the number of large corporations who pay little or no corporate tax to the Australian Government. Qantas is one such company. There are many legitimate reasons why a company has not paid tax, even if they are reporting a profit. Follow this link to read Neil Chenoweth explain why Qantas did not pay tax in 2017. Because the Australian Financial Review operates behind a paywall, you will need to access this article via full-text in the University library databases. Click on the Factive link to find the full text version.
Finally, here is a criticism of the ABC for not reporting on corporate tax correctly.
WHAT YOU MUST DO
- Research and report on the reasons why Qantas paid no tax in the previous financial year. What are their predictions on when they will commence paying company tax again?
- Choose any two of the following theories:
- The IASB Conceptual Framework (a normative theory)
- Positive Accounting Theory (PAT)
- Legitimacy Theory
- Stakeholder Theory (the managerial branch of Stakeholder Theory).
- For each of your two chosen theories, perform a literature review that covers the history of the theory, the benefits of that theory and the problems of using that theory.
- Identify which of your two theories is the most suitable for explaining why Qantas paid no tax and when they might pay tax in the future.
- Apply that theory to further explain your report on Qantas in the first step of this assignment.