Friday Footnotes: July 30, 2021
In a recent undercover investigation, it has been revealed that the super-rich are being advised on how to avoid tax clampdowns by using loopholes in pension investments. The Guardian reported that multimillionaire UK residents are being pitched offshore products to legally protect their wealth from inheritance tax and capital gains tax. This news comes as a shock, especially considering the history of similar incidents involving accounting firms like KPMG.
On the other hand, the IRS has issued warnings about incorrect claims for the Employee Retention Credit, urging businesses to proactively resolve any erroneous claims to avoid penalties, interest, and audits. This follows the IRS’s denial of high-risk ERC claims and upcoming compliance work to counter improper claims.
In the workplace, EY has implemented a program called “reverse mentoring” to bridge the generational skills divide, pairing employees of different generations to share wisdom. This initiative aims to better connect EY’s diverse workforce of nearly 400,000 people.
Furthermore, EY and Visa are offering programs to attract athletes and ex-Olympians, recognizing their valuable skills like discipline, collaboration, and time management. These qualities make athletes successful in the workplace, with student-athletes seeing a 60% increase in salary growth compared to non-athletes.
In the realm of AI, accountants are being urged to receive training on how to use AI effectively, as technology like AI and Blockchain will have significant implications for their work. Many tax and accounting firms are optimistic about the potential of generative artificial intelligence (GenAI) but have not fully explored its applications yet.
Lastly, sustainability reporting and ESG management roles are on the rise, with Deloitte reporting that companies are making progress towards sustainability goals. CFOs play a crucial role in meeting corporate ESG goals, ensuring accurate non-financial information is incorporated into financial judgments.
Overall, these developments in the accounting profession highlight the importance of staying informed and adapting to new technologies and regulations to navigate the ever-changing landscape of finance and taxation.