Abstract Eric Monnet’s piece, “Democratic consequences of the insurance functions of central banks,” starts in exactly the right place. Monnet acutely observes some of the most fundamental issues with the dominant contemporary monetary policymaking regime. Most foundationally, he observes a gap between what central banks do and how they are legitimized. The consequence, in short, is a failure of the contemporary regime to justify itself on democratic terms. To overcome this failure, Monnet proposes an institutional reform—establishing a European Credit Council (ECC). He defends this proposal by appeal to democratic theory, particularly the literature on democratic theory that prizes ‘good deliberation’. While there is nothing wrong with Monnet’s claim that establishing an ECC would likely improve the quality of deliberation about the role of central banks, and in so doing, produce better policy, I argue here that this view misses something essential. Democracy requires more than accountability, transparency, and good deliberation. It requires democratic power: the power of the people and their elected officials to steer policy. Adopting this view of democracy, in contrast to the deliberative democratic view Monnet embraces, suggests a different set of required reforms. Instead of establishing an independent credit council, I suggest that we should be vesting stronger monetary policy guidance powers in existing democratic legislative bodies.
埃里克·莫内(Eric Monnet)的文章《中央银行保险职能的民主后果》(Democratic consequences of insurance function of central banks)一开始就说对了。莫内敏锐地观察到了当代占主导地位的货币政策制定机制的一些最根本的问题。最根本的是，他观察到央行的行为与它们如何被合法化之间存在差距。简而言之，其结果是当代政权未能以民主的方式为自己辩护。为了克服这一失败，莫内提出了一项制度改革——建立欧洲信贷委员会(ECC)。他通过诉诸民主理论来捍卫这一提议，特别是民主理论的文献，它推崇“良好的审议”。莫内声称，建立一个ECC可能会提高有关央行角色的审议质量，并由此产生更好的政策，尽管这一说法没有错，但我认为，这种观点忽略了一些至关重要的东西。民主需要的不仅仅是问责制、透明度和深思熟虑。它需要民主力量:人民和他们选出的官员引导政策的力量。采用这种民主观，与莫内所信奉的协商民主观形成对比，表明需要进行一系列不同的改革。与其建立一个独立的信贷委员会，我建议我们应该赋予现有的民主立法机构更强大的货币政策指导权力。
{"title":"Democratic Central Banking: Power Not Deliberation","authors":"Leah Rose Ely Downey","doi":"10.1515/ael-2022-0073","DOIUrl":"https://doi.org/10.1515/ael-2022-0073","url":null,"abstract":"Abstract Eric Monnet’s piece, “Democratic consequences of the insurance functions of central banks,” starts in exactly the right place. Monnet acutely observes some of the most fundamental issues with the dominant contemporary monetary policymaking regime. Most foundationally, he observes a gap between what central banks do and how they are legitimized. The consequence, in short, is a failure of the contemporary regime to justify itself on democratic terms. To overcome this failure, Monnet proposes an institutional reform—establishing a European Credit Council (ECC). He defends this proposal by appeal to democratic theory, particularly the literature on democratic theory that prizes ‘good deliberation’. While there is nothing wrong with Monnet’s claim that establishing an ECC would likely improve the quality of deliberation about the role of central banks, and in so doing, produce better policy, I argue here that this view misses something essential. Democracy requires more than accountability, transparency, and good deliberation. It requires democratic power: the power of the people and their elected officials to steer policy. Adopting this view of democracy, in contrast to the deliberative democratic view Monnet embraces, suggests a different set of required reforms. Instead of establishing an independent credit council, I suggest that we should be vesting stronger monetary policy guidance powers in existing democratic legislative bodies.","PeriodicalId":43657,"journal":{"name":"Accounting Economics and Law-A Convivium","volume":"2 1","pages":""},"PeriodicalIF":1.4,"publicationDate":"2022-12-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"79209325","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract The European Commission is currently seeking to implement the OECD/G20 agreement on minimum corporate taxation, in view to ensuring a minimum effective tax rate on large multinational corporate groups and protecting the level playing field for business and society. In fact, the proposed ruling introduces scope exceptions for groups directly or indirectly controlled by governmental entities, non-profit organisations, and investment and pension funds. These scope exceptions may provide incentives for controlling parties to restructure the corporate group in view to avoid taxation, if the minimum effective tax threshold is constraining and material. Furthermore, it may provide a tax competitive advantage for groups controlled by those parties.
{"title":"Corporate Control and Exceptions to Minimum Corporate Taxation: A Step Toward Fairness or Financialisation?","authors":"Y. Biondi","doi":"10.1515/ael-2022-0054","DOIUrl":"https://doi.org/10.1515/ael-2022-0054","url":null,"abstract":"Abstract The European Commission is currently seeking to implement the OECD/G20 agreement on minimum corporate taxation, in view to ensuring a minimum effective tax rate on large multinational corporate groups and protecting the level playing field for business and society. In fact, the proposed ruling introduces scope exceptions for groups directly or indirectly controlled by governmental entities, non-profit organisations, and investment and pension funds. These scope exceptions may provide incentives for controlling parties to restructure the corporate group in view to avoid taxation, if the minimum effective tax threshold is constraining and material. Furthermore, it may provide a tax competitive advantage for groups controlled by those parties.","PeriodicalId":43657,"journal":{"name":"Accounting Economics and Law-A Convivium","volume":"18 1","pages":""},"PeriodicalIF":1.4,"publicationDate":"2022-12-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90037849","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract The present study investigates what drives Lending inquisitors’ judgement & decision-making behaviour that influences credit risk assessment in Indian banks. This research investigates three aspects: risk attitude & information acquisition behaviour, the effect of experience on lending, and desirable attributes of lending inquisitors. For the first area, Kruskal–Wallis non-parametric test is applied, for second area correlation and Cramer’s V is applied on fictitious case analysis and for third aspect 27 attributes of inquisitors through unstructured personal interviews are then analysed by applying Kruskal Wallis Test, Factor analysis and Fuzzy analytic hierarchy process (FAHP). Fuzzy AHP technique was applied to understand the key personal attributes and sub-attributes, which play a major role in Lending inquisitors’ judgement & decision-making behaviour. The risk attitude and information acquisition provided no substantial relationship between the two. Whereas, in the second area, which is assessing the impact of experience on decision-making behaviour, the result shows that the senior and junior credit inquisitors are cautious in acquiring the information as compared to outsourced credit inquisitors.
{"title":"What Drives Lending Inquisitors’ Judgement & Decision-Making: Behavioural Factors Analysis through Kruskal–Wallis & Fuzzy AHP","authors":"Sandeep Kaur, Simarjeet Singh","doi":"10.1515/ael-2022-0002","DOIUrl":"https://doi.org/10.1515/ael-2022-0002","url":null,"abstract":"Abstract The present study investigates what drives Lending inquisitors’ judgement & decision-making behaviour that influences credit risk assessment in Indian banks. This research investigates three aspects: risk attitude & information acquisition behaviour, the effect of experience on lending, and desirable attributes of lending inquisitors. For the first area, Kruskal–Wallis non-parametric test is applied, for second area correlation and Cramer’s V is applied on fictitious case analysis and for third aspect 27 attributes of inquisitors through unstructured personal interviews are then analysed by applying Kruskal Wallis Test, Factor analysis and Fuzzy analytic hierarchy process (FAHP). Fuzzy AHP technique was applied to understand the key personal attributes and sub-attributes, which play a major role in Lending inquisitors’ judgement & decision-making behaviour. The risk attitude and information acquisition provided no substantial relationship between the two. Whereas, in the second area, which is assessing the impact of experience on decision-making behaviour, the result shows that the senior and junior credit inquisitors are cautious in acquiring the information as compared to outsourced credit inquisitors.","PeriodicalId":43657,"journal":{"name":"Accounting Economics and Law-A Convivium","volume":"80 1","pages":""},"PeriodicalIF":1.4,"publicationDate":"2022-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78217859","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract The present paper is a commentary on the article “The relationship between Taxation, Accounting and Legal Forms”, which has already been published in AEL: A Convivium. The article deals with Controlled Foreign Corporation rules (CFC rules) from a profit-seeking perspective. It develops tax schemes and assumes them to be adequate means to avoiding the Austrian or German CFC rules. This commentary argues that from the perspective of a critical rationalist methodology, the topic and the findings of the article need to be viewed with some reservation. A substantial objection applies to the article’s statement that the developed tax schemes are adequate to achieve the end of optimising the effective tax rate. However, there is the even more substantial objection that neither the developed tax schemes nor the end of optimising the effective tax rate without taking the interests of society systematically into account are legitimate. However, the article fails to address the major societal issue of how to reduce tax avoidance.
摘要本文是对《AEL: a Convivium》上发表的文章《税收、会计和法律形式之间的关系》的评注。本文从逐利的角度探讨受控外国公司规则。它制定了税收计划，并假设这些计划是避免奥地利或德国CFC规则的充分手段。这篇评论认为，从批判理性主义方法论的角度来看，文章的主题和发现需要有所保留。一个实质性的反对适用于文章的声明，即已开发的税收计划足以达到优化有效税率的目的。然而，还有一种更为实质性的反对意见认为，无论是发达的税收计划，还是在不系统地考虑社会利益的情况下优化有效税率的目的，都是不合法的。然而，这篇文章未能解决如何减少避税的主要社会问题。
{"title":"Why Tax Planning Without Considering Societal Interests is Unfounded","authors":"Ute Schmiel","doi":"10.1515/ael-2021-0115","DOIUrl":"https://doi.org/10.1515/ael-2021-0115","url":null,"abstract":"Abstract The present paper is a commentary on the article “The relationship between Taxation, Accounting and Legal Forms”, which has already been published in AEL: A Convivium. The article deals with Controlled Foreign Corporation rules (CFC rules) from a profit-seeking perspective. It develops tax schemes and assumes them to be adequate means to avoiding the Austrian or German CFC rules. This commentary argues that from the perspective of a critical rationalist methodology, the topic and the findings of the article need to be viewed with some reservation. A substantial objection applies to the article’s statement that the developed tax schemes are adequate to achieve the end of optimising the effective tax rate. However, there is the even more substantial objection that neither the developed tax schemes nor the end of optimising the effective tax rate without taking the interests of society systematically into account are legitimate. However, the article fails to address the major societal issue of how to reduce tax avoidance.","PeriodicalId":43657,"journal":{"name":"Accounting Economics and Law-A Convivium","volume":"116 1","pages":""},"PeriodicalIF":1.4,"publicationDate":"2022-10-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"88524143","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract This an apologia to Williams, P. F. (2022). The decline of substance over form in accounting: A problematic dichotomy. Accounting, Economics, and Law: A Convivium critique of Fischer, D., Ellman, O., & Schochet, S. (2021). The decline of substance over form in accounting. Accounting, Economics, and Law: A Convivium, 20190052 article about the decline of substance over form in accounting. The concept of “substance over form” has traditionally been a guiding principle for practicing accountants. In recent years, FASB has taken away the prerogative from individual practitioners to organically evolved GAAP. In the pre-FASB era, GAAP was indeed a bottom-up generally-accepted framework. Nowadays, FASB appropriates to itself the privilege to decide when form conforms with economic substance and when form should be bent to correspond to accounting theory.
这是对Williams, P. F.(2022)的道歉。会计中实质重于形式的衰落:一个有问题的二分法。会计、经济和法律:对Fischer, D.、Ellman, O.和Schochet, S.(2021)的一种共同批判。会计中实质重于形式的衰落。《会计、经济与法律:一个共同的观点》，2009年12月。“实质重于形式”的概念传统上一直是执业会计师的指导原则。近年来，美国财务会计准则委员会(FASB)取消了个别从业人员的特权，以有机地发展公认会计准则。在fasb之前的时代，GAAP确实是一个自下而上的被普遍接受的框架。目前，美国财务会计准则委员会拥有决定何时形式符合经济实质以及何时形式应弯曲以符合会计理论的特权。
{"title":"FASB to Practitioners: ‘Substance Over Form’ for Me but Not for Thee – An Apologia","authors":"Dov Fischer","doi":"10.1515/ael-2022-0046","DOIUrl":"https://doi.org/10.1515/ael-2022-0046","url":null,"abstract":"Abstract This an apologia to Williams, P. F. (2022). The decline of substance over form in accounting: A problematic dichotomy. Accounting, Economics, and Law: A Convivium critique of Fischer, D., Ellman, O., & Schochet, S. (2021). The decline of substance over form in accounting. Accounting, Economics, and Law: A Convivium, 20190052 article about the decline of substance over form in accounting. The concept of “substance over form” has traditionally been a guiding principle for practicing accountants. In recent years, FASB has taken away the prerogative from individual practitioners to organically evolved GAAP. In the pre-FASB era, GAAP was indeed a bottom-up generally-accepted framework. Nowadays, FASB appropriates to itself the privilege to decide when form conforms with economic substance and when form should be bent to correspond to accounting theory.","PeriodicalId":43657,"journal":{"name":"Accounting Economics and Law-A Convivium","volume":"56 1","pages":""},"PeriodicalIF":1.4,"publicationDate":"2022-10-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90123006","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract This article examines current technological trends in the securities post-trading system and the role of law in shaping these developments. Against this backdrop, we analyse (i) recent initiatives that aim at technologically improving the traditional post-trade system, (ii) projects that aim at enhancing the efficiency of post-trade processes related to traditional securities by using distributed ledger technology and (iii) post-trade issues related to the rise of crypto-assets and decentralised finance. We argue that the current role of law in shaping these technological trends is different in these three contexts. Regarding crypto-assets, the law can be likened to the hare in the Brother Grimms’ well-known fairy tale: It struggles in vain to keep up with developers in the crypto-asset system (who represent the hedgehog in the fairy tale). With regard to projects that aim at bringing distributed ledger technology to the post-trading of traditional securities, the roles are, in our view, reversed – the law plays the role of the hedgehog that, maybe unfairly, prevents the innovators (the hare) from succeeding. Finally, as regards two important technological trends in the traditional post-trading system that we analyse in this article different relationships emerge: In one case, the law (as hedgehog) “coaches” the industry (as hare) in its quest to implement technological improvements. In the other case, the law (as hedgehog) needs to prod the industry (the hare) into relevant action.
{"title":"Hare or Hedgehog? The Role of Law in Shaping Current Technological Trends in the Securities Post-trading System","authors":"Thomas Bernhard Droll, Andrea Minto","doi":"10.1515/ael-2022-0029","DOIUrl":"https://doi.org/10.1515/ael-2022-0029","url":null,"abstract":"Abstract This article examines current technological trends in the securities post-trading system and the role of law in shaping these developments. Against this backdrop, we analyse (i) recent initiatives that aim at technologically improving the traditional post-trade system, (ii) projects that aim at enhancing the efficiency of post-trade processes related to traditional securities by using distributed ledger technology and (iii) post-trade issues related to the rise of crypto-assets and decentralised finance. We argue that the current role of law in shaping these technological trends is different in these three contexts. Regarding crypto-assets, the law can be likened to the hare in the Brother Grimms’ well-known fairy tale: It struggles in vain to keep up with developers in the crypto-asset system (who represent the hedgehog in the fairy tale). With regard to projects that aim at bringing distributed ledger technology to the post-trading of traditional securities, the roles are, in our view, reversed – the law plays the role of the hedgehog that, maybe unfairly, prevents the innovators (the hare) from succeeding. Finally, as regards two important technological trends in the traditional post-trading system that we analyse in this article different relationships emerge: In one case, the law (as hedgehog) “coaches” the industry (as hare) in its quest to implement technological improvements. In the other case, the law (as hedgehog) needs to prod the industry (the hare) into relevant action.","PeriodicalId":43657,"journal":{"name":"Accounting Economics and Law-A Convivium","volume":"39 1","pages":""},"PeriodicalIF":1.4,"publicationDate":"2022-10-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"91335599","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract The adoption of IFRS by the EU has raised issues about its economic consequences in terms of, among others, volatility of corporate profits, taxation of profit and distribution of dividends. Indeed, it has brought the interactions between legal rules for dividend distribution and accounting policies back into focus. The EU company and accounting regulations are based on capital maintenance rules that involve limitations on dividend distribution when certain accounting policies are implemented in individual financial statements under local GAAP. However, while a majority of member states permit IFRS for individual financial statements, the EU regulations are silent on this issue. In this article, we outline an in-depth analysis on legal dividend distribution rules interactions with accounting policies in European countries, whether local GAAP or IFRS are applied. We have selected nine cases of potential recognition of unrealised gains in individual financial statements under local GAAP and/or IFRS, some of which are already specified in the EU regulations. For each case, we have analysed the national accounting regulations and the corporate laws. Our analysis reveals that the limitations on dividend distributions recommended by the EU have been most largely implemented in the national regulations, but not in all countries. It also sheds light on potential loopholes in the current European regulation regarding unrealised gains that may be more systematically recognised under IFRS than under local GAAP: unrealised gains arising from the recognition of deferred tax assets and unrealised gains arising from benefit pensions plan. To fill these gaps in the national regulations and to harmonise the legal basis for dividend distribution better within the EU, we suggest including in the European regulation the concept of ‘realised profits’ and thus ‘distributable profits’ as a required basis for dividend distribution. It involves in the first place identifying relevant criteria that may enable disentangling realised and unrealised profits or losses.
{"title":"Accounting Policies and Dividend Limitation: A European Comparison","authors":"Anne Le Manh","doi":"10.1515/ael-2021-0041","DOIUrl":"https://doi.org/10.1515/ael-2021-0041","url":null,"abstract":"Abstract The adoption of IFRS by the EU has raised issues about its economic consequences in terms of, among others, volatility of corporate profits, taxation of profit and distribution of dividends. Indeed, it has brought the interactions between legal rules for dividend distribution and accounting policies back into focus. The EU company and accounting regulations are based on capital maintenance rules that involve limitations on dividend distribution when certain accounting policies are implemented in individual financial statements under local GAAP. However, while a majority of member states permit IFRS for individual financial statements, the EU regulations are silent on this issue. In this article, we outline an in-depth analysis on legal dividend distribution rules interactions with accounting policies in European countries, whether local GAAP or IFRS are applied. We have selected nine cases of potential recognition of unrealised gains in individual financial statements under local GAAP and/or IFRS, some of which are already specified in the EU regulations. For each case, we have analysed the national accounting regulations and the corporate laws. Our analysis reveals that the limitations on dividend distributions recommended by the EU have been most largely implemented in the national regulations, but not in all countries. It also sheds light on potential loopholes in the current European regulation regarding unrealised gains that may be more systematically recognised under IFRS than under local GAAP: unrealised gains arising from the recognition of deferred tax assets and unrealised gains arising from benefit pensions plan. To fill these gaps in the national regulations and to harmonise the legal basis for dividend distribution better within the EU, we suggest including in the European regulation the concept of ‘realised profits’ and thus ‘distributable profits’ as a required basis for dividend distribution. It involves in the first place identifying relevant criteria that may enable disentangling realised and unrealised profits or losses.","PeriodicalId":43657,"journal":{"name":"Accounting Economics and Law-A Convivium","volume":"18 1","pages":""},"PeriodicalIF":1.4,"publicationDate":"2022-09-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80047624","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract This essay advances the possibly startling notion that as a matter of largely conceptual understanding, the vast majority of accounting research’s empirical efforts concern tests of null hypotheses that are, a priori, false. Figuratively speaking, our journals specialize in providing compelling evidence that ‘the earth is not flat’. It further presents thoughts on the causes and consequences of this state of affairs. Moreover, while other fields also suffer from this ‘flat earth’ condition, it argues that as a field that specializes in issues surrounding the conveyance of useful information, the accounting academy should step up and take leadership on dealing with the problem. The essay closes by discussing how the field might venture forth from this sheltered approach to empirical inference and thereby enhance the discovery content of its empirical inquiries.
{"title":"Accounting Research’s “Flat Earth” Problem","authors":"William M. Cready","doi":"10.2139/ssrn.4115822","DOIUrl":"https://doi.org/10.2139/ssrn.4115822","url":null,"abstract":"Abstract This essay advances the possibly startling notion that as a matter of largely conceptual understanding, the vast majority of accounting research’s empirical efforts concern tests of null hypotheses that are, a priori, false. Figuratively speaking, our journals specialize in providing compelling evidence that ‘the earth is not flat’. It further presents thoughts on the causes and consequences of this state of affairs. Moreover, while other fields also suffer from this ‘flat earth’ condition, it argues that as a field that specializes in issues surrounding the conveyance of useful information, the accounting academy should step up and take leadership on dealing with the problem. The essay closes by discussing how the field might venture forth from this sheltered approach to empirical inference and thereby enhance the discovery content of its empirical inquiries.","PeriodicalId":43657,"journal":{"name":"Accounting Economics and Law-A Convivium","volume":"1 1","pages":""},"PeriodicalIF":1.4,"publicationDate":"2022-09-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"79353880","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract This article uses doctrinal analysis of UK tax law to address the question in political economy of where the ‘production boundary’ around value creation lies. It concludes that the ‘classical’ production boundary around material production may be encountered as an emergent feature of forensic investigations of the ontology of surplus in real world commercial contexts. This is particularly important for political economists of the global production network because of the contrasting structural phenomenon whereby value is predominantly added in immaterial production processes.
{"title":"Juridical Ontologies of Production and the Ricardian Machine","authors":"Clair Quentin","doi":"10.1515/ael-2022-0018","DOIUrl":"https://doi.org/10.1515/ael-2022-0018","url":null,"abstract":"Abstract This article uses doctrinal analysis of UK tax law to address the question in political economy of where the ‘production boundary’ around value creation lies. It concludes that the ‘classical’ production boundary around material production may be encountered as an emergent feature of forensic investigations of the ontology of surplus in real world commercial contexts. This is particularly important for political economists of the global production network because of the contrasting structural phenomenon whereby value is predominantly added in immaterial production processes.","PeriodicalId":43657,"journal":{"name":"Accounting Economics and Law-A Convivium","volume":"402 1","pages":""},"PeriodicalIF":1.4,"publicationDate":"2022-07-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86628459","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract The progressive harmonization of corporate financial information, based on the International Financial Reporting Standards, has moved fair value accounting (FVA) to the forefront of a debate that straddles accounting and corporate tax. Given the subjectivism that FVA may exhibit, especially when mark to market is not available and mark to model is used as in level 3 FVA, tax legislators have strongly restricted its impact on the corporate tax base. This paper argues that while the Portuguese corporate tax legislators explicitly followed this worldwide trend of restricting the tax impact of fair value to certain circumstances when market prices are observable (level 1 FVA), the corporate tax code has, nonetheless, several important avenues through which FVA influences taxable income determination. The main purpose of this paper is to present and discuss some important ways through which FVA may influence taxable income determination in Portugal, such as goodwill, impairment charges, transfer pricing, capital gains and exit taxation. Thus, the question emerges: is FVA returning through the window to impact the corporate tax base? Considering the global trends in public finance, and the need for present and future tax revenues, we believe this is an important topic to be addressed.
{"title":"Fair Value and Corporate Taxation: Out through the Door, Back through the Window?","authors":"A. Martins, Cristina Sá, Daniel G. Taborda","doi":"10.1515/ael-2021-0046","DOIUrl":"https://doi.org/10.1515/ael-2021-0046","url":null,"abstract":"Abstract The progressive harmonization of corporate financial information, based on the International Financial Reporting Standards, has moved fair value accounting (FVA) to the forefront of a debate that straddles accounting and corporate tax. Given the subjectivism that FVA may exhibit, especially when mark to market is not available and mark to model is used as in level 3 FVA, tax legislators have strongly restricted its impact on the corporate tax base. This paper argues that while the Portuguese corporate tax legislators explicitly followed this worldwide trend of restricting the tax impact of fair value to certain circumstances when market prices are observable (level 1 FVA), the corporate tax code has, nonetheless, several important avenues through which FVA influences taxable income determination. The main purpose of this paper is to present and discuss some important ways through which FVA may influence taxable income determination in Portugal, such as goodwill, impairment charges, transfer pricing, capital gains and exit taxation. Thus, the question emerges: is FVA returning through the window to impact the corporate tax base? Considering the global trends in public finance, and the need for present and future tax revenues, we believe this is an important topic to be addressed.","PeriodicalId":43657,"journal":{"name":"Accounting Economics and Law-A Convivium","volume":"12 1 1","pages":""},"PeriodicalIF":1.4,"publicationDate":"2022-06-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78345145","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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