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How are tax law and politics connected? This volume takes a global and comparative perspective and examines:tax reform and the development of political institutions; the impact of political institutions on attempts to reform taxation; and improving processes of tax policy and law-making to enhance both tax and governance outcomes.There are three main themes:Does increased and more widespread taxation lead to participatory or democratic institutions? Case studies on Hong Kong and Russia address this question.What is the impact of political and institutional regimes on tax reform? The introduction of GST into Australia, retirement savings policy in Australia and New Zealand, and the media and tax reform in New Zealand are considered.Can tax law and governance outcomes be improved by greater focus on legitimacy, transparency and fairness? This volume examines fiscal corruption in developing countries, gender responsive tax policy in Canada and Australia, and public participation in Australian tax policy formation.Tax Law and Political Institutions is a special issue (Volume 24 No 2) of the journal Law in Context. The contents are listed below. You can read the abstract for each chapter by clicking on its title.You can purchase a single copy of this issue through this page, or subscribe to the journal from the journal page.

A curious feature of the Australian tax treatment of intellectual property is that, while specific tax incentives are given to initial research and development activity which might generate intellectual property with commercial potential, and while significant tax concessions are given to capital gains which might be realised if a project for commercialisation of intellectual property is ultimately successful, there is no special tax assistance for the intermediate phase of commercialisation activity itself. That is the activity by which the knowledge, ideas and inventions generated by the research and development are converted into the business assets capable of producing commercial revenues from marketable goods and services. This Report undertakes a comprehensive review of the features of the Australain income tax system which inhibit or discourage commercialisation of intellectual property. We find that the income tax law revevals a sub-optimal tendency to impose taxation of unrealised gains, and double taxation of realised gains, from intellectual property commercialisation. Areas we have identified as causing problems include: (a) up-front tax liabilities imposed on the initial contribution of intellectaul property to commercialisation vehicles such as spin-off companies; (b) inappropriate tax liabilities imposed on employee shares in start-up companies; (c) unfavourable tax treatment of start-up losses where the commercialisation vehicle is a limited liability company; (d) denial of tax deductions for many intellectual property commercialisation cost items, such as confidential information, trade secrets, trade marks, brands and goodwill; (e) features of the general tax law which negate the intended benefits of specific concessions such as deductions for research and development and the venture capital and pooled development fund concessions; (f) tendencies in the tax law to encourage relocation of intellectual property ownership and control to more favourable overseas jurisdictions; and (g) tendencies in the tax law to discourage investment in entrepreneurial risk activity as an alternative to passive low-risk investment activity.

This edition continues to focus on lasting skills for interpretation of this constantly evolving area of law. Distinctive commentary from leading tax academics and thought-provoking questions with a practical application combine to engage and educate readers in the subject. Instead of merely concentrating on the present state of the tax system, the book prepares readers to deal with future clients and taxation issues by imparting valuable tools.