Client Update July 2022

July 22, 2022

OECD 2022 updates affecting Transfer Pricing

Srinidhi Tuppal and Ava Colocho both work for Kreston Global US member firm, CBIZ MHM,  as Transfer Pricing experts. They were recently invited to share their expertise with International Accountant magazine on the latest OECD developments.

This article offers an overview of the developments since 2015 and the impact they have had on transfer pricing globally. In 2017, three new guidance reports were issued on the transactional profit split method, hard-to-value-intangibles (HTVI) and transfer pricing guidance on financial transactions. The 2022 update offers further clarification and the co-authored article gives guidance to multinational enterprises on how to comply with the updates.

Crackdown on digital art

Digital art sales are beginning to break records, with one art collection in a non-fungible token (NFT) format recently reaching almost $70 million (US) at auction.  
With financial crime on the rise in this developing sector, Surandar Jesrani of UAE member firm Kreston Menon (MMJS Consulting) writes about international regulator moves to crack down on digital art assets in Accounting and Business News.

His article covers the risk of NFTs used in a regulatory environment that is not set up to manage the creation, licensing and trade of NFTs and considers what the future may look like for NFT regulation.

Cryptocurrency investors in Asia

Since the arrival of Crypto assets and ever-evolving technology, investors now face even greater Cryptocurrency challenges, including exposure to cybercrime.

Kreston Global member Ganesh Ramaswamy of Kreston Rangamani explores recent case studies and the impact they have had on the Asian Cryptocurrency market.

Find the full article in Financial Regulation International (subscription needed).

IFRS Update: New standards for insurance contracts

This May, the UK Endorsement Board (UKEB) announced its approval of a new international financial reporting standard (IFRS) for insurance contracts – IFRS 17.

It takes effect from 1 January 2023.

Ahead of that date, it’s important for all organisations in the insurance industry, or otherwise, to check whether they will be affected.

Cyber security

Cyber security is a big issue for today’s businesses. The threats change over time and the tools used to commit the fraud schemes adapt to new technologies and software developed to combat them. As a result, cyber fraud is difficult to detect, and it is possible that the attacks remain undetected for a long period of time, which results in large fraud losses for organisations.

Read our latest insight on the definition of cyber fraud and how to keep your business safe in the digital space. Authored by Ricardo Gameroff, from Kreston MCA in Chile.

Ricardo is an expert in fraud, audit, and risk advisory services. He is also a university professor and researcher on occupational fraud and a published author.

Kreston Global appoints Chair and Technical Director of Global Internal Audit and Risk Group

Kreston Global has announced Doron Rozenblum as Chair of its new Global Internal Audit and Risk Group and Vineet Rathi as Technical Director.

Doron is the Managing Partner of Kreston-Ezra Yehuda-Rozenblum, based in Israel, where he leads their Risk Advisory Services practice.

Vineet Rathi, Managing Partner of Kreston OPR Advisors in Vadodara, India, has also been appointed Technical Director for the new group. Vineet has over 20 years of experience in the field of financial services, transaction advisory and risk assurance practice.

The new group will be a part of the wider Kreston Global Audit Group, chaired by Theo Theodoulou of Kreston ITH.

Global HNWI & R&D Tax Incentives Chairs announced

Kreston Global has appointed Steve Gully, director at Alex Picot Trust, as the Chair of the High Net Worth Individuals Group. Dean Pearson, director at BHP Chartered Accountants, joins as Chair of the Research and Development Tax Incentives Group.

These two important appointments will join Mark Taylor, Global Tax Group Chair and Head of Tax Advisory at Duncan & Toplis, and three further specialist tax groups to deliver an ambitious strategy for the Network.

Case study: Biosceptre – UK, Australia, UAE

Biosceptre is a leading biopharmaceutical company focused on providing new therapies for a wide range of cancer patients. Its researchers work on cell therapy and immune-oncology treatment and have made significant discoveries to help target cancer cells more effectively.

The company is headquartered in Cambridge, UK, and has operating subsidiary companies in Sydney, Australia, and Dubai in the UAE. Kreston firm PEM in Cambridge was appointed as Biosceptre’s UK advisers when the company restructured its operations and set up in the UK during 2013, led by Callum Dunsmore.

Click below to read the full case study.

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