The Principality of Hutt River: Using Accounting for Sovereignty

Abstract

Purpose – The purpose of this article is to show how the Principality of Hutt River has used accounting to uphold its sovereignty. The Principality unilaterally seceded from Australia in 1970 and is not formally recognized as a sovereign state. Nonetheless, with an increasing trend of post-nationalism, the status quo of sovereign states as sole providers of citizenship and company registration is being challenged. Therefore, in order to reaffirm its sovereignty, the Principality has developed political rationalities and technologies with the intention of offering citizenship and company registration to foreigners. Design/methodology/approach – A qualitative approach was adopted to examine the Principality’s implemented government practices aiming to intervene in economic and social life within its borders. The researchers undertook an archival search regarding the Principality throughout Australian court cases and diplomatic cables, as well as reviewing published material and the internet home site of the Government of the Principality of Hutt River. Findings – The evidence supports the argument the Principality has used accounting to intervene in economic and social life within its borders. The Principality’s Ministry of Foreign Affairs accepts citizenship applications and foreign companies can register with the Principality’s Registrar of Companies & Bank. Nonetheless, the Principality is landlocked in Australia and such government practices are still challenged by the Australian Government. Hence citizens of the Principality can only reach its territory if the Australian Government grants them a visa to enter Australian territory. Regarding the registration of foreign companies with the Principality, the Australian Government brands such action mostly as a tax avoidance scheme. Originality/value – This article contributes to the growing research in new accounting history as it explores the wake of the relationship between accounting and the state, with an emphasis on a secessionist state. Individuals becoming citizens of the Principality and foreign companies registering with the Principality show the increasing relevance of territories such as the Principality competing with sovereign states and the role of accounting in the advance of a post-national zeitgeist.