Yearly Archives: 2018 ...

UHY, the international accounting and consultancy network, has appointed the Chief Operating Officer of US member firm UHY Advisors, Inc., Rick David, as the new chairman of UHY.

Rick started his career in the audit practice of one of the ‘Big Four,’ where he practiced for 30 years. He joined the UHY Board of Directors in October 2012 and served as Treasurer of UHY from 2015 to 2018.

As well as being a well-respected auditor and business adviser, Rick also has experience as an accountancy profession regulator and standard setter.

During his more than 40-years’ experience in the industry, Rick has worked with a wide range of clients from multinational corporations to smaller entrepreneurial enterprises.

He also contributed to the Accounting profession through his service on the Michigan State Board of Accountancy and the Professional Ethics Executive Committee of the American Institute of Certified Public Accountants (AICPA).

Rick comments: “Being chairman of one of the largest accounting and consultancy networks in the world presents a really exciting opportunity.”

“We are already seeing a large increase in cross-border work coming to the network and that is something that we intend to build on. More of our clients want our member firms to represent them globally and that is what this network facilitates.”

One of Rick’s key priorities during his time as chairman is to expand on the strong links between the member firms across the UHY network and will look to build on the increased flow in referral work between countries to enhance the knowledge shared between local offices. This includes expertise in many newer technological developments taking place in the industry.

Says Rick: “The growth in innovative new accounting practices, integrating AI and data analytics for example, are opening up a range of possibilities for the profession – to do work more efficiently and rigorously. These developments have the potential to lead to dramatic improvements in the audit process.”

“The UHY network gives member firms the opportunity to share knowledge of new developments with offices across the world. Utilising these links also allows us to develop the next generation of leaders in the industry.”

“With a more globalised and connected world than ever, the industry has to ‘think local, go global.’ The UHY network is a key vehicle to help us build relationships with clients and serve them by tapping into that wider bank of expertise across the world.

Rick takes over as Chairman from Bernard Fay, managing partner at UHY Fay & Co, UHY’s Spanish member firm and one of the top 20 leading firms in Spain.

Notes for Editors

UHY global press contact: Dominique Maeremans on +44 20 7767 2621

Email: d.maeremans@uhy.com – www.uhy.com

Nick Mattison or Peter Kurilecz

Mattison Public Relations

+44 (0) 20 7645 3636, +44 (0)7860 657 540 or email peter.kurilecz@mattison.co.uk

New member firm in Sri Lanka joins the UHY network

We welcome, Centra Management Associates, our new member firm in Sri Lanka, to the global accountancy network UHY, extending our coverage within the Asia-Pacific region.

Centra Management Associates, with a team of 41 including two partners, is based the capital city of Colombo with another office in Kandy, and was established in 2012. The firm provides a full suite of audit and assurance, accounting and business advisory services to a diverse portfolio of SMEs to large multinationals from predominantly the following sectors: manufacturing, services, construction and real estate, pharmaceuticals and non-governmental organisations and associations.

Partner, Abdul Sathar Mohamed Ismath of Centra Management Associates comments: “Our country is a success story under development, whilst facing important political and environmental challenges, Sri Lanka is transitioning to a more competitive, inclusive, and resilient economy. Our firm has joined the UHY network for many reasons. The global presence of the network combined with the expertise and knowledge of UHY’s colleagues around the world not only strengthens our own capabilities, locally and internationally, but also these of our clients and their operations.”

Bernard Fay, chairman of UHY comments: “We are delighted to welcome Centra Management Associates to the UHY network. The firm’s membership reinforces our footprint in the Asia-Pacific region and strengthens UHY’s regional market expertise and capabilities to support clients’ needs and opportunities.”

The firm is in the process of adopting the UHY branding.

Liaison office for Centra Management Associates

Contact: Partner, Abdul Sathar Mohamed Ismath on +94 777 536 646,

Email: partner@centramgt.com,

website: http://centramgt.com

Notes for Editors

UHY press contact: Dominique Maeremans on +44 20 7767 2621

Email: d.maeremans@uhy.com – www.uhy.com

European* companies face taxes as a percentage of the price of fuel on average 18% higher than the world average, putting them at a serious disadvantage and potentially risking economic growth, shows a new study by UHY, the international accounting and consultancy network.

UHY explains that on average taxes comprise 59% of the cost of the price of petrol and 52% of the cost of the price of diesel, compared to the global averages of 50% and 44% respectively.

Taxes amount to 60% of the cost of diesel in the UK, the highest in the study, and 53% of the cost in Germany.

In many major economies outside of Europe, taxes make up significantly lower proportions of the price of petrol and diesel, including:

• Japan, where 42% of the cost of petrol and 33% the cost of diesel is from tax
• Canada, with taxes making up 35% of the cost of petrol and 32% of diesel
• United States**, where taxes comprise 17% of the cost of petrol and 18% of diesel

Higher fuel taxes means that the cost of filling the tank*** of a Ford Transit van with petrol in Europe – indicative of a typical business expense – amounts to USD$135 on average. This compares to a global average of USD$111.

UHY explains that higher fuel duties and taxes in Europe are the main contributor to higher fuel prices for petrol, diesel and Liquefied Petroleum Gas.

The cost of filling a tank of a Ford Transit with diesel is 24% higher on average in European countries. As diesel is used in the majority of commercial vehicles, this heavy burden is borne primarily by businesses.

It is also 2% more expensive in Europe for Liquefied Petroleum Gas (LPG), a more environmentally-friendly alternative to petrol or diesel.

Bernard Fay, Chairman of UHY, comments: “Higher fuel taxes hit almost all businesses, and they can ultimately impede economic growth.”

“For any government, taxes on petrol and diesel are a key tool for helping to cut greenhouse gas emissions and can be used to fund infrastructure spending. However, for businesses, especially small and medium enterprises (SMEs), they can represent a significant operating cost, especially in the retail and distribution sectors.”

“There needs to be a balance to ensure fuel and tax costs do not become prohibitive. The relatively lower rates in major developed economies, most notably the United States, compared to its international competitors in Europe shows that a balance can be struck.”

“Governments can consider initiatives such as freezing fuel duties or even cutting the rates. There needs to be greater international cooperation to ensure there is not too much discrepancy in fuel prices between different countries.”

UHY studied fuel taxes and prices in 24 countries around the world, looking at the cost of petrol, diesel and LPG/Autogas and the percentage of the price that came from tax.

France ranked the highest for tax comprising the largest percentage of the total price of petrol – 64%. Denmark ranked the most expensive in the UHY study for the overall cost of filling a tank with petrol – costing USD$160.

UHY adds that fuel can also be hit by a range of different taxes. In the Republic of Ireland, for example, there are three taxes on fuel, with Value Added Tax (VAT), the Excise and Carbon Tax, and the National Oil Reserves Agency (NORA) Tax.

There are also three fuel taxes in Poland, with VAT, excise duty and a tax fuel surcharge, with certain subsidies available for farmers.

However, in 2018, the Polish Government plans to introduce a fourth levy on fuel – an additional surcharge of 3 USD cents per litre – used to fund the development of electric forms of transport.

Piotr Wozniak of UHY member firm UHY ECA Group in Poland, comments: “While wanting to fund eco-friendly projects is a worthy endeavour, too high a level of taxes can discourage business investment.”

“Many emerging markets around the world are focused on ways to help businesses lower their operating costs. As a result, Poland could be at risk of losing business to rival economies with cheaper fuel taxes. The Government should consider what possible subsidies it could offer.”

In the United States Federal taxes on gasoline average just slightly over 18 cents per gallon, with 60% of all revenue raised spent on highway and bridge construction. Only 27, out of 50, states currently impose taxes on LPG.

UHY explains that in the US funds raised from fuel taxes can be used to fund a wide range of initiatives beyond road and infrastructure improvements to include educational funding.

Scott Miller, National Petroleum Group Leader of UHY member firm UHY Advisors in the United States comments: “Lower taxes levied on fuel can be a powerful stimulant to increasing economic growth. It is a cost factor that affects virtually every business.”

“While the price of petrol is dynamic and can vary across individual states in the US, the trend is clear. The overall level of taxes levied on fuel tends to be lower outside of Europe. That may be a factor in underlying the US’ strong economic growth.”

Filling the tank of a Ford Transit with petrol – proportion of cost made up of fuel cost and tax (Major economies and world averages)

Filling the tank of a Ford Transit with petrol: breakdown of cost of fuel and tax

Filling the tank of a Ford Transit with diesel: breakdown of cost of fuel and tax

Filling the tank of a Ford Transit with Liquefied Petroleum Gas (LPG): breakdown of cost of fuel and tax

*EU countries

**US figures based on averages across US states

***Tank size: 80 litres for petrol and diesel, 72 litres for LPG

****Tax rates include VAT, some or all of which may be reclaimed by businesses in some countries, including EU member states

Notes for Editors

UHY global press contact: Dominique Maeremans on +44 20 7767 2621

Email: d.maeremans@uhy.com – www.uhy.com

Nick Mattison or Peter Kurilecz

Mattison Public Relations

+44 20 7645 3636, +44 7860 657 540 or email peter.kurilecz@mattison.co.uk

About UHY

Established in 1986 and based in London, UK, UHY is a leading network of independent audit, accounting, tax and consulting firms with offices in over 320 major business centres across more than 95 countries.

Our staff members, over 8,100 strong, are proud to be part of the 16th largest international accounting and consultancy network. Each member of UHY is a legally separate and independent firm. For further information on UHY please go to www.uhy.com.

UHY is a member of the Forum of Firms, an association of international networks of accounting firms. For additional information on the Forum of Firms, visit www.forumoffirms.org

New member firm in Georgia joins the UHY network

We welcome, GEWORD, our new member firm in Georgia, to the global accountancy network UHY, extending our coverage within the EMEA region.

GEWORD, with a team of 30 including two partners, is based the capital city of Tbilisi, and was established in 2010. The firm provides a full suite of services including audit, tax, bookkeeping, accounting, management consultancy and legal services to a diverse portfolio of local and international clients from Georgia’s main industry sectors; energy, construction, transportation, hospitality and retail.

Partner, Kakha Khmelidze of GEWORD comments: “Over the last decade, Georgia’s economy has grown at an average annual rate of 5%. It has worked hard to liberalise trade with the European Union (EU) and improve customs efficiency and infrastructure reliability, aspiring to become a world leading business cluster. Our firm has joined the UHY network for many reasons. The UHY branding, quality standards and integration with the UHY community will give us a great opportunity to expand our own local and international footprint. The global presence of the network combined with the expertise and knowledge of UHY’s 8,100 people around the world not only strengthens our own capabilities but also these of our current and potential clients and their operations.

Bernard Fay, chairman of UHY comments: “We are delighted to welcome GEWORD to the UHY network. The firm’s membership reinforces our footprint in the EMEA region and strengthens UHY’s regional market expertise and capabilities to support clients’ needs and opportunities.”

The firm is in the process of adopting the UHY branding.

Liaison office for GEWORD

Contact: Partner, Kakha Khmelidze on +995 32 2 13 15 41,

Email: Info@geword.ge

website: http://geword.ge/

Notes for Editors

UHY press contact: Dominique Maeremans on +44 20 7767 2621

Email: d.maeremans@uhy.com – www.uhy.com