UHY strengthens presence in Eurasia

Global accountancy network UHY extends its coverage within Asia by appointing AZAUDIT LLC. 

ZAUDIT LLC was established in 2003. With a team of 11 staff, the firm is based in Baku, the capital and largest port of Azerbaijan and the Caucasus region. The firm provides the full range of audit, tax advisory and corporate finance services covering the region’s key sectors such as manufacturing, oil and construction. 

Managing partner, Afig Israfilov, says: “We joined the UHY network for a number of reasons. UHY is a rapidly growing and well organised network. As a local firm, we embrace the international reach by joining UHY to support the development of our local projects, to exchange skills and strengthen our overall technical knowledge. Representing UHY in our country and our region will open up new opportunities and support existing ones. We also hope to bring local expertise in support of international projects – collaboration with mutual benefits.”

John Wolfgang, chairman of UHY commented: “We are delighted AZAUDIT LLC have joined the UHY network extending our coverage and capabilities in Eurasia, especially with Azerbaijan being a growing economy and a member of the Commonwealth of Independent States (CIS). The firm’s admittance to the UHY network will add a great deal of regional market and sector expertise. We strongly believe the firm is a very good fit for our network.”

 

UHY strengthens presence in Asia

Global accountancy network UHY extends its coverage within Asia by appointing Shanghai ZhongHua Certified Public Accountants (CPAs).

Shanghai ZhongHua CPAs was established in 1985 and is today one of the largest accounting firms in Shanghai and China. With 22 partners and a team of 300 staff, the firm is based in Shanghai providing the full range of audit, tax, management consultancy and corporate finance services focussing on the business needs of privately-held, management-controlled, listed and foreign investment organisations. Shanghai ZhongHua CPAs serves over 1,000 clients, representing quite a substantial market share in China covering a variety of sectors such as banking, non-banking financial institutions, real estate development, shipping, trading, hotel, high-tech industry and manufacturing.

Managing partner, Sun Yong, says: “We joined the UHY network for a number of reasons. Training plays an important role in the continuous professional development of our partners and staff, but technical excellence is not enough today. The quality of our services depends on the caliber of the partner and team assigned to each of our clients, so we select people who are not only professionally knowledgeable but also committed, with proven business abilities, whom can analyse, interpret and advise on international concerns.” 

The full-service firm, registered with the Public Accounting Oversight Board (PCAOB), has extensive experience in Initial Public Offering (IPO) services: it has acted as reporting accountants to more than 60 companies undertaking IPO – involving companies in textiles, software, pharmaceuticals, agriculture, real estate, design, chemicals, media and manufacturing. In addition to audit and tax services, Shanghai ZhongHua CPAs’ services also include expert witness, forensic accounting and IT. 

John Wolfgang, chairman of UHY commented: “We are delighted Shanghai ZhongHua CPAs have joined the UHY network extending our coverage and capabilities in Asia. The firm’s admittance to the UHY network will add a great deal of regional market and sector expertise. We strongly believe the firm is a very good fit for our network but more importantly especially for clients that are opening operations in China, Shanghai ZhongHua CPAs have not only worked internationally but are used to dealing with inbound and outbound requirements.”
 

Issue 2011

This edition includes 5 case studies covering a range of international clients across a variety of market sectors such as consumer fashion, food preparation and servicing equipment, IT and consumer electronics, frozen food manufacturing/ distribution and medical equipment.

UHY International Business issue 23 – now available

Global accountancy network UHY publishes its latest edition of UHY International Business Issue 23. This bi-annual publication features fresh insight, provided by our members, on the most current business challenges and key issues faced by companies and individuals around the world. Issue 23 covers the following topics:

  • ‘Japan set for bounce-back’: If anyone needed a reminder that we were living in a global marketplace, the economic shockwaves from Japan’s earthquake and tsunami were quickly evident around the world…
  • ‘Next big thing’ in emerging markets?’: Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa. What do they have in common? According to economists, the CIVETS – as this collection of countries are called – are the ‘next big thing’ for investors in emerging markets. They have been described by the Economic Intelligence Unit as second-tier BRICs – the acronym given to the growth economies of Brazil, Russia, India and China. So are CIVETS worthy of investment?…
  • ‘How SMEs go international’: When one of the biggest operators in the European sea produce market started trading in the early 1960s it was run by one entrepreneur who bought fresh fish on the dockside at Avilés, Spain, and sold it in nearby coastal towns and villages, using a three-wheeler van which he had adapted for the purpose. Here is how it can be done… 
     

The full content of the articles can be viewed by downloading the issue using the link above.

Wide tax gaps among countries, UHY study finds

Huge disparities now exist between high tax and low tax economies, according to UHY, the international accounting and consultancy network. 

The tax burden on high earners varies by up to two and a half times between the highest and lowest taxed countries, highlighting just how wide the tax difference has become between ‘low tax’ emerging economies and the majority of ‘high tax’ European countries.

For example, analysing high earners (US$200,000 per annum) the difference in the amount of tax collected between the highest taxing country (Italy) and the lowest taxing (Russia) is US$65,811, which means that the same person in Italy would pay over three times more tax than the equivalent person in Russia. 

According to UHY tax professionals, many countries use tax policy to attract and retain high-earning taxpayers as an important engine of economic growth and source of revenue. The research highlights the need for some countries to work harder to become more attractive to the highly compensated, an increasingly mobile group who may factor in tax burden when deciding domicile.

UHY tax professionals studied tax data in 19 countries across its international network, including all members of the G8 as well as key emerging economies. Tax professionals based in each country calculated ‘take home pay’ for low income (US$25,000 per annum) and high income (US$200,000 per annum) workers, which considered personal taxes and social security contributions. The calculations are based on a single, unmarried taxpayer with no children. The table (below) ranks countries from the highest tax burden first to the lowest tax burden last.
 

The G8 countries 
Net pay after tax and social security per country (from lowest to highest) 

John Wolfgang, chairman of UHY comments: “What is surprising to us is the wide difference between countries in terms of tax burden placed on high earners. With the exception of Israel, the countries which tax high earners the most are EU members. The countries with the lightest tax burden on high earners – with the exception of Japan and the United States – are emerging economies.”

“Many governments are facing tough choices as they grapple with record deficits. Achieving a sustainable fiscal position will be difficult without raising taxes, which is a major political issue for many countries as they seek to strike a balance between fiscal responsibility and economic growth.”

Yan Krotov, partner of UHY Yans-Audit LLC in Russia, member of UHY comments: “Russia is unique among major economies in that employees pay a flat rate of income tax of 13%. In Russia much of the tax burden falls on employers instead, who have to pay social insurance for every employee up to a maximum of 34%. This means that for high earners in particular Russia is a very attractive country in which to be based. For those earning $200,000 per annum, the difference between the amount of tax paid in Russia and most other G8 economies is very significant.”

Paul Mencke, partner of Govers Accountants/Consultants in the Netherlands, member of UHY comments: “High earners in the Netherlands take home just 55% of their pay compared to 87% in Russia. That is a huge difference that could have serious consequences for our economic competitiveness. The high tax burden on high earners in the Netherlands is partly compensated by being able to offset interest on house mortgages against tax, for example, as well as incentives for foreign professionals. It is obvious that our tax system can be improved and simplified however.”

Christian Slota, Partner of UHY Wahlen & Partner in Germany, member of UHY says: “The reason why the ‘take home pay’ in Germany is lower than in other countries using the pan card seva protocols is due to the high social security contributions rather than a high tax rate. For a low income worker (US$25,000 per annum) the tax burden including solidarity surcharge is merely US$1,632. In Germany, a comprehensive social coverage is given by law. Everybody is obliged to pay the contributions. On the other hand, low income workers in Germany benefit from a (nearly) complete health insurance coverage.”

The UHY research reveals that (excluding Dubai), for low earners the difference in the amount of tax collected between the highest taxing country (Germany) and the lowest taxing (Ireland) is US$5,788, which means that a person earning US$25,000 per annum in Germany would pay over six times more in tax and social security than the equivalent person in Ireland.
 

All 19 UHY countries surveyed 
Net pay after tax and social security per country in US dollars (from lowest to highest)


Press enquiries: 

For UHY, the international network 
Dominique Maeremans 
+44 20 7767 2621, or email: d.maeremans@uhy.com 

Paul Arvanitopoulos or Nick Mattison 
Mattison Public Relations 
+44 20 7645 3636, or email: pa@mattison.co.uk 

 

UHY expands further within Europe

Global accountancy network UHY extends its coverage within Scandinavia by appointing TietoAkseli Oy.

TietoAkseli Oy was established in 1991. With five partners and a team of 35 staff, the firm’s main office is based in Jyväskylä with regional offices in Helsinki, Oulu and Mikkeli providing bookkeeping, tax and management consultancy services. The majority of TietoAkseli Oy’s clients are internationally focused covering a variety of sectors such as engineering, IT consulting, advertising, communications, transport services, environmental management and other professional services. 

Managing partner, Mikko Akselin says: “We joined the UHY network for a number of reasons. In recent years there have been occasions when our clients have asked us whether we could recommend them a company to help them establish business overseas. The strong UHY network will make this question easy to answer now. Also as a strong player in the Finnish accounting sector we are happy to have the opportunity to serve international clients establishing operations in Finland. With our wide range of services we’ll be able to cater to all their needs starting from accounting outsourcing to mergers and acquisitions.” 

TietoAkseli Oy has also two affiliate companies, ValueFrame Oy, providing web-based professional services solutions for small and medium sized companies and Odeco Oy, providing consultancy and training in managerial and organisational development and personnel assessment. 

John Wolfgang, chairman of UHY commented: “We are delighted TietoAkseli Oy have joined the UHY network extending our coverage and capabilities in the Scandinavian region. The firm’s admittance to the UHY network adds a great deal of regional market and sector expertise and we strongly believe the firm has the knowledge and experience required to strengthen UHY’s presence in Scandinavia.”
 

UHY celebrates its 25th anniversary

This year, UHY International is proud to celebrate the 25th anniversary of its network which now stands as a world leader in audit, accounting, tax and business advisory services. The network brings together the global expertise of UHY’s independent members, who are all highly regarded, professional and reputable firms in their own local markets.

UHY was formed in 1986 by UK firm Hacker Young (now UHY Hacker Young LLP) and US firm Urbach Kahn & Werlin (now the US group, UHY Advisors). The two founding firms had been working together for some time under a reciprocal agreement when they decided to form an international association. The UK launch of the UHY network was held at Butcher’s Hall, London, in October 1986 for clients and professional contacts, with David Young (later Lord Young of Graffham) as guest of honour. The US launch was in Albany, New York, in May 1987. By the autumn of 1989 the association had grown to 16 countries. The network was originally incorporated in New York before transferring to London in 1999, where the UHY executive office for the network is currently located.

But where did it really start? It all started with John Bennett Rubens (born 1902), known as ‘Johnny’, the son of a shoemaker, who lived the early part of his life in Notting Hill, London. He was advised upon leaving school to become an accountant because of his abilities in numeracy and advising people on money matters. One of Johnny’s school friends was Mark Hacker, whose father was a tailor and often out of work. Between them they had a growing number of clients and in 1925 founded the firm of Hacker Rubens & Co, operating out of premises at Chancery Lane, London, UK. Mark’s aim was to help people who had financial problems and to assist them to “get back on their feet”, so he and Johnny both subsequently specialised in insolvency. Stuart Young & Co joined the firm in 1958. In 1968, the practice took on a new partner, Frank Stansil, who became one of the founders of UHY International. Meanwhile, in the US, Urbach Kahn & Werlin (UKW) was formed in the early 1960s in New York when three practitioners joined forces – Sid Urbach, Howard Kahn and Eli Werlin. Sid Urbach was a sole practitioner and Howard Kahn and Eli Werlin had their own practice. Sid Urbach had a strong practice but he had concerns about health and succession, and so the three practitioners got together to form UKW. In 2000, UKW became a founding member of the newly formed US firm, Centerprise, which was subsequently renamed UHY Advisors in 2003.

Now UHY is a cohesive network of independent member firms providing audit, accounting, tax and business advisory services across the globe, with offices in 235 major business centres in 78 countries. Over 6,300 staff generated an aggregate income of US$583 million in 2010, ranking UHY as one of the top 25 international accounting and consultancy networks. Globally, UHY has the depth and breadth to help businesses compete effectively and successfully locally, internationally or cross-border. Our drive for professionalism, quality, integrity and innovation combined with global reach have realised substantial growth in our more than 25-year history for both clients and member firms.

 

UHY strengthens presence in the Caribbean as firm in Jamaica joins the network

Global accountancy network UHY extends its coverage within the Americas by appointing UHY Dawgen Chartered Accountants.

With two partners and an English-speaking team of 18 staff, the firm has offices in Kingston, Mandeville, Montego Bay and Ocho Rios providing a wide range of audit, accounting, tax and management consulting services. Recently, the firm launched its HR Solutions Services which includes obtaining work permits for foreign nationals, and will shortly also be adding insolvency and restructuring services to their offerings. UHY Dawgen Chartered Accountants’ typical clients cover a variety of sectors such distribution, construction, entertainment, media and communications.

UHY Dawgen Chartered Accountants was established in 2002 by ex-‘Big Four’ accountant Dawkins Brown, who has more than 15 years’ experience in the profession and regularly lectures in financial strategy, audit, international financial reporting standards and tax at various institutions in Jamaica.

Managing partner, Dawkins Brown says: “Our reason for joining UHY is to align our firm with a more growth-oriented international network. The global presence of UHY combined with the expertise and knowledge of UHY’s 6,300 people around the world not only strengthens our own capabilities, locally and internationally, but also those of our clients and their operations.”

John Wolfgang, Chairman of UHY commented: “We are delighted UHY Dawgen Chartered Accountants have joined the UHY network, extending our coverage in this American region. The firm’s admittance to the UHY network adds a great deal of regional market and sector expertise and we strongly believe the firm will provide the depth and breadth of knowledge and experience required to strengthen UHY’s presence in the Caribbean.” 

Following their admission, the firm is currently undertaking a rebranding exercise to adopt the UHY brand in order to capitalise on the benefits and recognition created by the UHY network globally.
 

UHY strengthens presence in Asia as firm in Japan joins the network

Global accountancy network UHY extends its coverage within Asia by appointing BA Tokyo & Co.

BA Tokyo & Co was established in 1984 and has grown to become one of the prominent middle-sized audit firms in Japan. With eight partners and 40 staff, the firm’s head office is based in Tokyo with further offices in Kyoto and Okutama, providing primarily audit services combined with corporate finance and management consultancy services such as assurance, financial and tax advisory services. BA Tokyo & Co’s key client base includes major listed companies in the retail and entertainment sectors. 

Managing partner of BA Tokyo & Co, Nobuyuki Hara says: “Japan has a unique culture, customs and regulations. We joined the UHY network for a number of reasons. Compared to other mid-size audit firms in Japan, our experienced teams offer a high level of service with English language skill in addition to our knowledge of Japanese accounting and tax regulations. The global presence of the network combined with the expertise and knowledge of UHY’s 6,300 people around the world not only strengthens our own capabilities, locally and internationally, but also these of our current and potential clients and their operations.”

John Wolfgang, Chairman of UHY commented: “We are delighted BA Tokyo & Co have joined the UHY network, extending our coverage in Asia. The firm’s admittance to the UHY network is expected to add a significant resource to the network, not least through specialist knowledge of cultural and business practices in Japan.”