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Posted: May 2nd, 2021
Using the news articles provided below as a base, and referring to other appropriate literature, discuss and critically evaluate the following: Determine the basis on which the tax-free status was initially provided in this case. Identify and discuss the arguments in favour of providing the tax-free status for sporting clubs. What are some reasons why some clubs have achieved large incomes since the tax-free status was initially provided. Identify and discuss the arguments against providing the tax-free status for sporting clubs.
Using Public interest theory, Capture Theory and Economic Interest Theory, describe possible reasons why the clubs retain their tax free status and what may happen if the tax-free status is removed. What theory explains why these clubs ask for governments to build and upgrade the facilities in the stadiums? Explain how the theory would work in this case. What other accounting theories might explain the reasons both for and against the tax-free status for sporting clubs in Australia?
Explain what possible impacts there may be if tax-free status was withdrawn from small local sporting clubs, and children’s sporting clubs. Should there be a division between the tax rules for small clubs versus large clubs? How (in your opinion) should this division be decided (back up your opinion with an Accounting Theory) Accounting homework help
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