BFM285 International Taxation and Accounting Coursework Essay Assignment 2024/25

BFM285 TASK DETAILS/DESCRIPTION:

Topic 1: MNCs, Global Accounting and Taxation Diversity

Multinational companies (MNCs) are characterised as “engines of global economic development, technological transfer and deepening globalisation” (Hunya, 2012, p.9). It is also recognised that MNCs “have undoubtedly become an institutional force […] to comply and tackle various sustainability issues worldwide” (Clegg, 2019; Liou & Rao-Nicholson, 2021, p.137). Given that MNCs’ operations spread across several countries, their international involvement is evident in different forms, bringing the need for reforms in accounting and tax systems as well as contribute to the sustainable development goals (SDGs). However, diversity in accounting and tax practices and standards across countries generate problems for a number of different groups including MNCs.

Required:

Imagine that you are an international accounting and taxation researcher. You are asked to present at a workshop organised by the International Accounting and Taxation Association with the theme: ‘The role of Multinationals and their contribution to the Global Economy and the attainment of the SDGs,’ for presentation to a group of international accounting and taxation trainees from various countries across the globe will be in attendance.

Prepare a paper for presentation which critically assess, discuss and analyse the role and functions of MNCs, the reasons of their international involvement and how they contribute to global economic development and the attainment of the SDGs, making special mention of developing nations.

Your discussion paper must include a brief critical assessment of the paper, Mattes (2012). The Regional Embeddedness of Multinational Companies: A Critical Perspective.

Your critique must also include your own judgments of the challenges posed by accounting and taxation diversity on MNCs’ practices in their global expansion. All your discussions and arguments must be supported by relevant examples and current academic debates on MNCs.

Note:

Trainees should receive this paper prior to the workshop. Note must be taken that these trainees have limited knowledge of the operations of multinationals within the global economy and how their operations may/may not contribute to the attainment of the SDGs.

Topic 2: Double Taxation Treaties

Double tax treaties are usually agreements between two contracting states. No two states have exactly the same tax system. They have different definitions of what constitutes tax residence, different interpretations of the source principle and possibly different systems of double tax relief. Double tax treaties are needed to provide a consistent, common and logical basis by which contracting states can share between themselves the tax rights over persons and institutions that have a connection with both states (Oats, 2023)Required:

Imagine that you are employed by Global Tax and Accounting Inc. a medium size accounting organization, offering consultancy services as the Double Taxation expert, with offices in Europe, Africa, The Americas, Australia, India, and the Caribbean. Trainee double taxation consultants from various country offices will be attending an online seminar on ‘Double Taxation - Paying your fair share of tax and meeting the SDGs.’

You are tasked to prepare a paper for circulation prior to the seminar to the trainee consultants who have limited knowledge in Double Taxation issues.

The paper requires you to critically assess the concept of ‘bilateral double taxation treaties.’ Your assessment should include a critical assessment of the paper/thesis: Double taxation agreements in Kenya: A comparative analysis of the effectiveness of the OECD and UN tax treaty models; evaluation of the objectives of double taxation treaties; analysis of double taxation treaties, how they aid trade between countries, how double taxation treaties promote the payment of taxation double taxation treaties in relation to the domestic law of a jurisdiction, and why double taxation treaties may be ‘bad’ for developing countries.

Your critique should also include your own judgments on the contributions of supranational organizations like the OECD and the UN to the debates on double taxation treaty issues and how double taxation treaties can contribute to the attainment of the SDGs.

Topic 3: International Tax Planning

Imagine that you are a consultant with the International Centre for Tax and Development which primarily provides advice on International Tax Planning matters to tax professionals and investors. Having served in the post for the last three years, you have noticed that concerns are increasingly raised with you about the use of tax havens, base erosion of profits, the Digital Economy, tax competition, MNCs making more profits but paying less taxes, MNCs moving to low tax regimes, MNCs’ contribution to the attainment of the SDGs etc.

Aston Taxation Centre is holding a conference on International Tax Planning with consultants, academics, tax administrators from countries across the world including Europe, Canada, USA, Brazil, Chile, Ecuador Pan-Africa, the Caribbean, India and Russia, New Zealand. You are invited to be the plenary speaker at this conference.

Required:

Prepare a paper to address the issues raised over the last three years. These issues include the use of tax havens, the base erosion of profits, the Digital Economy, the tax competition, the MNCs making more profits but paying less taxes, the MNCs moving to low tax regimes, the MNCs contributing the attainment of the SDGs. Your discussion paper should also include the following:

1. Critical assessment of the report Shaxson (2019), Tackling tax havens. Finance and Development, IMF Tackling tax havens (IMF 2019)
2. Critical assessment of at least two global initiatives that States have engaged or adopted to both increase transparency and minimize the occurrence of tax avoidance.

Module Learning Outcomes Assessed:

On successful completion of the module, students should be able to:

1. Explain and discuss the reasons why accounting and taxation are constantly evolving and developing and why different societies and stakeholders have varying benchmarks for the appropriateness of accounting standards and taxation policy.
2. Make judgments on, explain, reflect on double taxation, transfer pricing and anti-avoidance issues and critically appraise and consider the appropriateness of international tax planning on business and society.
3. Critically assess, analyze, evaluate, reflect on the role and contributions of supranational organizations like the IMF, the OECD, the UN on a nation's tax policy and culture, tax harmonization and tax competition.
4. Resolve tax issues using information from all areas of the module content along with information from all their learning and teaching activities and information from the public domain on current issues in taxation.

Presentation Requirements:

Word Count: 2,250 words excluding references.

Font Size: Arial Line Spacing: 1.5

Note on the use of Artificial Intelligence (AI)

For this assessment, use of generative AI is optional. You can use AI, but only in clearly specified ways (e.g., AI can be applied as a study aid)

• It is appropriate, but not essential, to make constructive use of generative AI tools for this assignment. This should not include using AI to create the content of the assessment submission, but may, for example, include generating initial ideas, summarising notes, or research articles, for translation, or creating a study plan.
• Any application or use of AI should always be acknowledged. Misuse of generative AI, as defined in Aston’s assessment regulations, will be treated as an academic offence and may be subject to disciplinary action.

Submission Date & Time:

You will submit your essay in week commencing December 09, 2024, on
December 13, 2024 by 12 noon.

Assessment Weighting for the Module:

Percentage - 85%

Assessment Criteria

See the attached.

Ethical Requirements

The    students    would    not    use    any    primary    and    secondary    data collection/analysis that requires ethical approval.

Essential Reading for Coursework Task

(if in addition to reading provided in the module outline):

You will find some relevant references on Blackboard page relating to the respective topics which you can use to start the project. We also provide you with some additional references. Please note that this list is not intended as an exhaustive or definitive list of readings for this piece of coursework. Instead, the articles/chapters listed below should be viewed as core or essential readings that may act as a starting point as you prepare to tackle this assignment:

1. Al-Rawashdeh, B.H. (2019). Taxpayers’ rights in mutual agreement procedure on the basis of double taxation treaties and the BRICS countries. Journal of Legal, Ethical and Regulatory Issues, 22, 4.
2. Balcilar, M., Usman. O. & Ike, G. N. (2023) Operational behaviours of multinational corporations, renewable energy transition, and environmental sustainability in Africa: Does the level of natural resource rents matter? Resources Policy, 18 (March), 103344.
3. Blouin, J. & Robinson, L (2020). Double counting accounting: how much profit of multinational enterprises is really in tax havens? SSRN-id3491451.pdf [Accessed September 19, 2024].
4. Brauner, Y. (2014) What the BEPS? Fla. Tax Review, HeinOnline.
5. Brautigam, D., Fjeldstad, O-H & Moore, M. (2008). Taxation and State-Building in Developing. Countries Cambridge University Press.
6. Brown et al., (2019). The interplay between country-by-country reporting, geographic segment reporting, and tax haven: Evidence from the European Union. Journal of Accounting and Public Policy, 38, 106-129.
7. Crivelli, E., De Mooij, R. & Keen, M. (2015). Base erosion, profit shifting and developing countries. IMF Working Paper. WP/15/118.
8. Diana, G. (2020). A comparative analysis of the effectiveness of the OECD    and    UN    tax    treaty    models. 
9. Ekemezie, I.O. & Digitemie, W.N. (2024). Best practices in strategic management across multinational corporations: A global perspective on success factors and challenges.
10. Eyitayo-Oyesode, O.A. (2022). Fostering implementation of the United Nations sustainable development goals in Africa: Prospects of revenue generation under the tax treaties signed by Nigeria, Tanzania and Botswana.
11. Evans, C., Hasseldine, J., Lymer, A., Ricketts, R. & Sandford (2017). Comparative Taxation: Why Tax Systems Differ (e-book).
12. Ftouhi, K. & Ghardallou, W. (2020). International tax planning techniques: a review of the literature. Journal of Applied Accounting Research, 21(2), 329-343.
13. Hearson, M. (2017). The UK’s tax treaties with Developing Countries during the 1970s (Book Chapter).
14. Hearson, M. (2018). Why do developing countries negotiate away their corporate tax base? Journal of International Development, 30, 233-255.
15. Jones, C.M., Temour, Y. & Cobham, A. (2017). Tax haven networks and the role of the Big 4 Accountancy firms. Journal of World Business, 53(2), 177-193.
16. Kudrle. T & Eden, L. (2003). The campaign against tax havens: will it last? will it work? 9 Stan. J.L Bus. & Fin. 37 (or forthcoming version in the Stanford Journal of Law, Business, and Finance).
17. Lang, M. (2013). Introduction to the Law of Double Taxation Treaty.
    IBFD.
18. Liou, RS., Rao-Nicholson, R. (2021) Multinational enterprises and Sustainable Development Goals: A foreign subsidiary perspective on tackling wicked problems. Journal of International Business Policy, 4, 136–151
19. Mattes, J. (2012) The Regional Embeddedness of Multinational Companies: A Critical Perspective. European Planning Studies,21(4), 433-451.
20. Mitchell, A., Sikka, P., Christensen, J., Morris, P. and Filling Steven (2002). No accounting for tax havens. Report. Association of Accountancy and Business Affairs, Essex.
21. Nerré, B. (2008). Tax culture: A basic concept for tax politics.
    Economic analysis and Policy, 38(1), 153-167.
22. Oats, L. (2023). Principles of International Taxation. 7th ed. Bloomsbury Professional.
23. OECD Model of Double Taxation Treaty.
24. Richardson, G. & Lanis, R. (1999). The influence of culture on tax administration. Australian Tax Forum, 15, 359.
25. Rolland, S. (2020). The Impact of Trade and Investment Treaties on Fiscal Resources and Taxation in Developing Countries. Chicago Journal of International Law, 21(1), 3.
26. Shaxson, H. (2019) Tackling tax havens, Finance and Development, International Monetary Fund.
27. Shukla, G., Pandey, S.K. & Lingam (2020). Tax effects of treaty shopping and OECD’s BEPS implications. FIIB Business Review, 9(2), 85-93.
28. Tax Justice Advocacy: A Toolkit for Civil Society.
29. Tax Transparency and country-by-country reporting (PWC) latest edition.
30. United Nations (2017). UN Double Taxation Convention between Developed and Developing Countries.
31. USA Model Double Taxation Convention.
32. UN Model of Double Taxation Treaty.
33. Wynter, C. & Oats, L. (2018) Don’t worry, we are not after you! Anancy culture and tax enforcement in Jamaica. Critical Perspectives on Accounting, 57, 56-69.
34. Zolt, E.M. (2018). Tax treaties and Developing Countries. WP18/05. Oxford University Centre for Business Taxation.
35. Clegg, J. (2019) From the editor: International business policy: What it is, and what it is not. Journal of International Business Policy, 2, 111–118.
    Hunya, G. (2012) The role of multinational companies in international business integration, Research report, The Vienna Institute for International Economic Studies, Novem