Exploring Tax Avoidance by Qantas Airlines: An Analysis Using Stakeholder and Legitimacy Theories

Running head: FINANCIAL ACCOUNTING THEORY
Financial Accounting Theory
University Name
Student Name
Authors’ Note

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FINANCIAL ACCOUNTING THEORY
Executive Summary
The report is prepared for reviewing the avoidance of taxes by corporations in Australia with
specific reference to Qantas airlines. Two theories have been selected for explaining the
concept of given scenario and those theories comprise of stakeholder theory and legitimacy
theory. Analysis of such theories has been done by reviewing literature related to the topic
concerned. In addition to this, the application of theory is done in the context of avoidance of
tax payment by Qantas.

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FINANCIAL ACCOUNTING THEORY
Table of Contents
Introduction:...............................................................................................................................4
Discussion:.................................................................................................................................4
Qantas and tax discussion..........................................................................................................4
Identification of two chosen theories and justification of chosen theories:...............................4
Stakeholder theory:....................................................................................................................4
Legitimacy Theory:....................................................................................................................4
Literature reviews on each theory:.............................................................................................4
Review of literature on Legitimacy Theory:..............................................................................4
Chosen theory application:.........................................................................................................4
Conclusion:................................................................................................................................4
References list:...........................................................................................................................4

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FINANCIAL ACCOUNTING THEORY
Introduction:
The report is prepared for explaining the incident of avoidance of tax by Airline
Company named Qantas by referring to the accounting theories. The uproar of media
regarding the tax avoidance incidence by large corporations such as Qantas is explicitly
illustrated in this report. Furthermore, report also demonstrate the identification of two
accounting theories and discussing on each of them by referring to literature review that
covers the benefits, history and problems and history of using that theory. The selected
theories is also used for explaining and discussion the reason why the Qantas has not paid any
taxes and predicting whether they would pay taxes in future (Zorzini et al., 2015). Two
different accounting theories that have been chosen incorporate legitimacy and stakeholder
theory and the selection of these accounting theories have been properly justified. Such
theories have been illustrated in this particular study by explaining the application in the
given situation.
Discussion:
Qantas and tax discussion:
Qantas is the largest airline and flag carrier of Australia by international flights, fleet
size and international destinations. The company was established in year 1920 and has grown
to be a largest domestic and international airline company and it is known as one of the
strongest brands of Australia and long distance airline. Reputation of organization has been
built on its excellence of operational reliability, safety, customer service and engineering and
maintenance. The main business of group is customer transportation using complementary
brands of Jetstar and Qantas. Operations of the group are also in subsidiary business that
includes business in specialist market such as Q catering and other airlines. The airline brand