The next few days might see reduced blog activity. I am at the Institute of Development Studies at the University of Sussex taking part in, and co-presenting with Prof Prem Sikka to, a conference organised by the International Centre for Tax and Development on the role that unitary taxation might play in tackling international tax abuse and in shifting the tax based towards developing countries who so badly loses out under current international tax arrangements
Prem and I have been researching the interaction between accounting standards and tax bases in this context. Our paper will be published in due course. What we have discovered is a whole area for work which to date hardly seems to have been systematically addressed at all in academic tax or accounting literature, and which appears to have been simply pragmatically ignored by tax authorities who have as a result created a myriad of conflicting mechanisms for addressing accounting failures which do in themselves provided enormous opportunity for arbitrage and abuse. That is precisely why this under-examined field is worthy of further study.
There will be more on this issue as this year progresses, considering the issue over a wide range of scenarios if time permits.