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Submission No. 284 Back to full list of submissions
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I would like the Review of Business Taxation to consider my proposal for a World Community Investment Code as set out in my submission of April 14th to Mr. Steve Moran, Trade Negotiations Division, Department of Foreign Affairs and Trade.  This submission is included as "Appendix B" of my submission of April 30th to the House of Representatives Standing Committee on Employment, Education and Workplace Relations.  This submission is publicly available on their web site <>

The basic proposal is to introduce an optional two tiered business tax rate.  The lower rate being available to any  business that transfers at least 5% of its ownership each year to citizens on who its depends for its existence such as its employees, customers, suppliers and host community.  In this way the income of citizens would increase to expand the Australian tax base while at the same time reduce the loss of foreign exchange earnings and deficit in the current account and make firms more competitive.  Australia would become more attractive to foreign or domestic investors on a basis that would increase local ownership and control of business by the strategic stakeholders to increase the competitiveness of business.   The loss of tax revenue from enterprises would be more than offset by the higher tax base of individuals and the saving in welfare expenditures.  Because investors discount future cash flows at an equity discount rate and discount this again for uncertainty, the optional lower rate of business tax would not be more than half the rate for those enterprises which maintained unlimited ownership.  An alternative approach is to only allow businesses to write off the value of their assets for tax purposes if they also write their ownership so that it can be acquired by their strategic stakeholders as explained above.

I have many articles developing this proposal since my seminal paper  'Time Limited Corporations', Abacus: A Journal of Business and Accounting Studies, Sydney University Press, 9:1, pp. 28-43, June ,1973 and also published as  Monograph No. 340 by the, Economic Society of Australia and New Zealand, N.S.W. Division, August, 1973.  Refer also to 'Resource Tax Alternative', Economic Papers, The Economic Society of Australia, 1:2, pp. 85-88, September, 1982.

More recent articles published in international refereed academic journals are:

'Stakeholder Governance: A cybernetic and property rights analysis', Corporate Governance: An International Review, Blackwell, 5:1. pp. 11-23, January, 1997. <>

'Stakeholder Co-operation', Journal of Co-operative Studies, Society for Co-operative Studies, 29:3, pp 18-52,  (no.88), Manchester, January, 1997.

'Should Ownership Last Forever?', Journal of Socio-Economics, 27:3, pp. 341-363, 1998.

There are many professional and popular articles on describing details of this proposal listed on my web page <>

This submission may be made public and I would be pleased to contribute such further information as may be required.

Yours faithfully

Shann Turnbull
P.O. Box 266 Woollahra, Sydney, Australia, 1350
Phone: +612 9328 7466 office
           +612 9327 8487 home
Fax: + 612 9327 1497 home & office
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