Assessment Details and Submission Guidelines
|Unit Title||HI5015 Legal Aspects of International Trade and Enterprise|
|Assessment Type||Individual Assignment|
|Assessment Title||Research paper|
Purpose of the assessment (with ULO
|Students are required to research a multinational company (MNC) of your choice from the list below and explain in a report format on how any Legislative regulatory framework/s affecting the MNCs which operate in Australia and the impact of treaties, conventions or agreements on their products and services that they provide in Australia.|
|Weight||20% of the total assessments|
|Total Marks||20 marks|
|Word limit||Not more than 2000 words|
|Submission Guidelines |
Assignment 1 Specifications
This assignment aims at ensuring that students have familiarised themselves with their chosen MNCs topic and are able to identify the relevant Legislative, regulatory framework/s, treaties, conventions or agreements that are affecting their operation in Australia.
1. Identify a multinational company (MNC) which operates in Australia. Provide a brief description of the company including the following:
2. Identify any legislative regulatory framework/s affecting the MNC you have identified which operates in Australia and discuss why and how it affects the company. For example, multinational corporations, like local companies, are subject to 30 per cent corporate tax. (925 words, minimum 3 references)
3. Identify any treaties, conventions or agreements that have impacted on the products or services that your chosen MNC provides in Australia. How does it impact the provision of these products and services? (925 words, minimum 3 references)
Assignment structure is to be written as a report format. It must include:
1. Please choose from one of the following multinational companies (MNCs) operate in Australia from the list (see below).
2. Enter the name of your chosen MNC in Blackboard
3. A 50% deduction automatically applies if you work on a company different from the one you entered in Blackboard, without obtaining prior permission from your lecturer.
Law and Audit
The current assignment is upon the working of the multinational companies in a global platform where their trade has been allowed to be fostered because of the nation wise treaties and conventions entered upon by different trading partners. The legislations operating in Australia also affects the business of the multinational companies and the manner they can grow. The analysis of Wells Fargo based in United States but working internationally is being done to understand this phenomenon.
With the economic changes, there are several laws and regulations which needs to be complied by the company in its business functioning> however, it is necessary to set up harmonization in the domestic and international reporting framework if company wants to sustain its business in long run. In this report, Wells Fargo Company has been selected for the report. The application of this treaty has initiated coordination between the tax officials of these two countries which also prevents evasion of tax. The treaty also puts limit upon the tax deducted at source, especially on investment income. It is analysed that Wells Fargo is prevented to pay taxes on the income generated in Australian lands in United States. If the Australian taxation system is complied with, and no tax amount is evaded, the company is prevented to be charged for taxation of any amount in United States (Thuronyi, and Brooks, 2016).
Brief description of the company
About the company and industry
Wells Fargo is based in America and is operating as a financial services company. As per the American market data, the company is fourth largest U.S. bank due to the pool of assets owned which value US$ 1.895 trillion for financial year 2018. The industry of company’s operation is Banking, Insurance and Financial services. The company operates globally with 70 million customers in around 35 countries. The company also has its business operations in Australia and is listed at Australian Stock Exchange (Tayan, 2019). The legislative authorities studied include Australian Competition (AC) and Consumer Commission (CC), Australia Prudential Regulatory Authority (APRA) and Australian consumer law. The effect of the conventions entered for avoidance of double taxation and for the bilateral trade agreement has been studied. The introduction of Wells Fargo organisation is also discussed.
Number of employees globally
The company has recorded the employee strength of 258.7 thousand for the present scenario. This is the number of full time employees who are working in Wells Fargo since 2009.
Location of headquarters
The company’s headquarters are located in San Francisco, California in United States.
Effect of legislative regulatory frameworks operating in Australia upon the operations of Wells Fargo
The different regulatory frameworks existent in Australia that effect the operations of MNCs like Wells Fargo are as follows:
Even the supervision of the operations undertaken by the External Dispute Resolution Scheme (EDRs) is done by the ASIC. Along with it ASIC also works for the management of the operations of the financial and banking companies.
also every corporation whether listed or not is required to pay the tax on the income earned at the rate of 30%, irrespective of the tax rate required to be paid in their home country. It implies that no matter at what interest rate Wells Fargo pays tax on its income in United States, it has to pay tax at the rate of 30% for the income earned in Australian business.
Because of entrance of this treaty between United States and Australia, the organisation Wells Fargo is prevented to pay taxes on the income generated in Australian lands in United States. If the Australian taxation system is complied with, and no tax amount is evaded, the company is prevented to be charged for taxation of any amount in United States (Thuronyi, and Brooks, 2016).
Because of AUSFTA the operation of Wells Fargo has been able to transact its business with much ease and smoothness with the Australian competitors. Any business requirement imported by Wells Fargo in Australia is now tariff free because of the application of the provisions of this act. Also, for the products and services exported by Wells Fargo in United States there stand no tariff upon them. The quality of business done by Wells Fargo however is unaffected because of the removal of these tariffs (Williams, 2017).
The legislations and authorities dealing in the financial and banking sector are also mandatorily meant to treat Wells Fargo in the same manner with same privileges and opportunities as they make available for any domestic organisation operating in the same industry. Environment which extend non-discriminatory applications of all the policies have been made available to Wells Fargo (Voon, and Mitchell, 2016). Wells Fargo being belonging from one of the most favoured nations of Australia is allowed to operate with same business environment as is provided to the domestic concerns. No discrimination can be borne between the two.
On account of application of this trade agreement any kind of limitation upon the trade is not allowed to be exerted upon the multinational companies (Gleeson, and Menkes, 2018).
In the pursuit of the world coming together the benefits of globalisation cannot be reaped unless the trade on an international level is highly liberalised and the useless restrictions on the same are removed. The different treaties and conventions entered by Australia are not limited to just with United States but with several countries over the globe. This is a step that has promoted trade on the international platform. If the provisions of these treaties are seriously followed, that can help a lot in removing the unnecessary obstacles that prevent organisations from growing and businesses from fostering. It is just a step which has to be seriously implemented by the trading partners to help themselves attain high economic growths.