Peering Into The FutureThe accountancy profession in 2020

Praxity in Asia PacificCoverage & fast facts in our Regional Praxity profile

Bottoms up to BrusselsReports from the recent Praxity conferences

HUB 3

Once more, this creates an opportunity for Praxity Participants. That’s because the tier 1 firms are plagued by lack of elasticity, and eventually the beast gets so big that they lose that service focus. Read the center page feature to see if colleagues agree with my views.

As I reflect back and look to what the future holds for Praxity and its Participant firms, I feel that we are in a great place and it’s our clients that are benefiting. Although some distance away, I have a vision that like William Buck (page 21), my great-grandchildren will attend a ceremony to toast Praxity’s centenary!

Look forward to hearing your thoughts in Beijing. See you there.

Rick Anderson

Message from the Chair

Looking back at what Praxity has accomplished as an organisation since its formation nearly a decade ago, we should be extremely proud. Each firm has played a vital role in establishing a solid and collaborative network.

Praxity started just as the global economic crisis was taking hold. But thanks to the stability of our membership, firms have emerged stronger than ever. Much of this can be attributed to individual specialists who have actively gone above and beyond the call of duty to engage with global counterparts, many becoming a natural extension of a local client team.

National Chairman of William Buck, Nikolas (Nick) Hatzistergos, summarises the ethos of Praxity perfectly on pages 20 and 21. He talks about embracing the collaborative culture. Like Nick, I agree unequivocally that being a member of Praxity doesn’t entitle you to a referral. Yet, if you see your fellow member firms as an extension of your capabilities and use the Alliance to service your clients across borders, then there’s every chance your details will be recalled further down the line.

One feature that has really begun to bed down in the Alliance is our Working Groups. The global tax group, who met once again in May -this time in Brussels-, is a great example of what a well-established, proactive team of likeminded professionals can achieve (see pages 10 and 11). Longer running conferences, like this one, help to reaffirm the importance of giving clients integrated solutions. It doesn’t matter if your specialist skills are on the fringes of the BEPS project, the conference reaffirmed that tax cannot be taken out of the business decisions. And I think that in the future that will be even more prevalent.

That’s why I’m so encouraged to see our Marketing Working Group taking collaboration to the next level (page 7), and a new Transaction Services group getting off the ground in Brussels (page 16).

Hearing from a multinational company, like AstraZeneca, during these meetings can be particularly insightful. International businesses, whatever their size, are looking for stability, certainty and a consistently applied set of international tax rules. Insurers are no exception and their concerns to the BEPS proposals are understandably unsettling (see the Q&A on page 6). Uncertainty does make it difficult to apply to clients, especially since we don’t fully know what aspects will be adopted, and by which countries.

Seizing the opportunitiesWhatever the final outcome this autumn, clients are going to need help in reviewing their structures and revising them in some cases. Then there is the whole compliance and measurement aspect of BEPS. Businesses will need help developing systems for CbC reporting. Firms with global capabilities, like those that make up our Alliance, are uniquely qualified to provide solutions to the business community.

Looking to the future, I feel that there will be a big consolidation of firms in the accounting sector - particularly in the 2nd tier. Consultancy and advisory practices will grow (we’re already seeing a lot of this in the US and Europe). Integrated client services will become the norm. As competition stiffens, marketing will play an even greater role. In time, we may even start to see the traditional partnership structure fade, with firms hiring respected external professionals to lead practices. Interestingly, BKD (see page 17) has just appointed a former mayor to strengthen its public sector consulting practice. Suggesting that firms are already receptive to hiring external industry experts.

So, what’s in store for the next decade and beyond? It’s a hotly debated topic right now and will be the focus at this year’s Global Praxity Conference hosted in Beijing. I do know this, the business world is evolving and our profession is shape shifting to adapt.

At the start of this year I reflected on how quickly time passes. Nearing the end of my three-year tenure as Praxity Chair, I’m once again reminded how rapidly our profession evolves and adapts to the critical trends.

WELCOMECONTENTS

2 HUB 2015 ISSUE #3

We count on you… to make HUB greatThank you to all of the following people who sent and reviewed articles, sourced quotes, captions and images for this edition of HUB:

Tamara Aladinskaya, Sulaiman A. AlKharashi, Renáta Ardous, Arran Boote, Justin Bow, Francesca Breeze, Marco Carlei, Jane Carmichael, Ryan Coley, Daniel Coote, Steve Crewe, Hannah Dawson, John Durland, Jeremy Elwood, Alex Haigh, Robert Haigh, Alice Grey Harrison, Nikolas Hatzistergos, Aseel Hijazi, Louisa Howells, Mark Hu, Faye Hughes, Helen Jennings, James Kallman, Lillian Kallman, Torsten Kohl, Gerhard Meyer, Teresa McAlpine, Matt Neary, Charles Olney, Nora Olteanu, Deborah Poulter, Lisa Cawley Ruiz, David Sayers, Lauren, Schia, René Schöb, Carrie Sherreard, Stephanie Smith, Matt Snow, Bryony Vandepeear, Matt Wagner, Rob Wagner, Carol Wright, Selen Yigitbasi.

Suggested articles for HUB #4 2015 will be accepted up until 30th October 2015. Please do continue to send us your latest news, industry views and collaboration case studies. Email your stories and visuals to hubmagazine@praxity.com. We can publish more immediate news online. Plus, we welcome examples of collaborations and client case studies for our monthly circular In The Loop.

For more information, contact:Graeme GordonExecutive DirectorT: +44 (0)1372 738 190E: ggordon@praxity.com @GRG_Praxity

Executive officePraxity – Global Alliance Ltd.Suite 2, Beechwood57 Church StreetEpsomSurrey KT17 4PXUnited Kingdom

T: +44 (0) 1372 738 190F: +44 (0) 1372 738 199

Registered in England and Wales Company Number 7873027

www.praxity.com

Registered officePraxity AISBLBellevue 5/bB – 9050 GentBelgium

Registration in England and Wales FCO27606Registered in Belgium 6/CH/15.437/S

Praxity is a global alliance of independent firms. Praxity is organised as an international non-profit entity under Belgium law (a so-called IVZW or AISBL), with its registered office in Gent (Belgium), Bellevue 5/ b 1001. Praxity does not practice the profession of public accountancy or provide audit, tax, consulting or other professional services of any type to third parties. The alliance does not constitute a joint venture, partnership or network between participating firms. The firms that participate in the alliance are independent separate legal entities, and Praxity does not guarantee the services or the quality of services provided by participating firms. Praxity does not deliver services in its own name or at all. Services are delivered by the member firms. Praxity and its member firms are not agents of, and do not obligate, one another and are not liable for one another’s acts or omissions.

Copyright © 2015 Praxity - Global Alliance Ltd.All rights reserved.

FeatureInsurers brace themselves for BEPS Renáta Ardous and Stephen Brown articulate some of the key concerns

6MarketingRoundup from the Marketing Working Group meeting in Orlando

7Praxity NewsUpdate on Praxity members making headlines and what the team have been up to

8

ConferencesSome of the latest news from Praxity firms, Praxity Conferences, Reviews and news from the Conferences in Brussels

10 - 11

News from ParticipantsAll the latest from Praxity firms

9, 14 - 16ExpansionsMergers, acquisitions and strategic growth

17

FeatureFive minutes with.. Nikolas Hatzistergos

20 - 21

GalleryYour pictures tell the story

22 - 23

AwardsPraxity firms are winning awards all the time, see whose got the latest ones

18 - 19

FeaturePeering Into the Future of the profession with leading Praxity members

12 - 13Regional reportProfiling the Praxity firms, key people and business sectors in Asia Pacific

4 - 5

WelcomeMessage from the Chair

3

4 HUB 2015 ISSUE #3 HUB 5

Praxity in Asia Pacific

Arai & Cowww.arai-cpa.comFounded: 1991Headquarters: Tokyo, JapanPersonnel: 13 (1 Partner)

Bansal & Cowww.bansalco.comFounded: 1973Offices: 4Personnel: 68 (10 Partners)

Dasan Accounting Corporationwww.dasancpa.comFounded: 1997Offices: 2Personnel: 128 (21 Partners)

Sector/service expertise

Firms based in Asia Pacific Hameed Chaudhri & Companywww.hccpk.comFounded: 1957Offices: 2Personnel: 75 (6 Partners)

K.M. Alam & Co.www.kmacobd.comFounded: 1967Offices: 3Personnel: 41 (3 Partners)

Moores Rowland CPAswww.mricpa.com.twFounded: 1987Offices: 5Personnel: 155 (13 Partners)

ShineWingwww.shinewing.comFounded: 1981Offices: 24Personnel: 4,000+ (149 Partners)

William Buckwww.williambuck.comFounded: 1985Offices: 6Personnel: 466 (61 Partners)

William Buck Christmas Gouwland Limitedwww.wbcg.co.nzFounded: 2012Headquarters: Auckland, New ZealandPersonnel: 70 (6 Partners)

Brand Finance PLCwww.brandfinance.com Founded: 1996Headquarters: London, United KingdomOffices: 10 (4 in the region)Personnel: 43

Mazars Groupwww.mazars.com Founded: 1940Headquarters: Paris, FranceOffices: 250 globallyPersonnel: 14,000+ globally (770 Partners globally)

Plante Moran, PLLCwww.plantemoran.comFounded: 1924Headquarters: Southfield, Michigan, USAOffices: 20 (1 in the region)Personnel: 2,066 (263 Partners)

Firms with offices in the region

Aside from the traditional audit, accountancy, tax planning, reporting and transactional tax services, Praxity Participant firms in Asia Pacific have the following specialist skills. To find an expert, log into Praxity’s My Site, search by specialism and make contact with people direct:

• Acc-Governance, risk mgmt. and internal audit

• Accountancy-General• Acc-Outsourcing services• Agriculture• Audit and Assurance• Budget Comment - Other Services• Capital Markets• Competition Services - Other Services• Construction• Corporate Finance• Employee Benefit Services/Pensions• Employer Solutions - Other Services• Energy & Mining• Entrepreneurial Services• Financial Services• Forensic Accounting• General Consulting - Other Services• Healthcare

Moores Rowland Indonesiawww.moores-rowland.comFounded: 1991Offices: 4Personnel: 335 (8 Partners)

Nagamine & Mishimawww.nagamine-mishima.comFounded: 1989Offices: 2Personnel: 70 (5 Partners)

PT AJA Sertifikasi Indonesiawww.ajaindonesia.comFounded: 2012Offices: 3Personnel: 18 (1 Partners)

Seschachalam & Companywww.sesco.inFounded: 1957Offices: 2Personnel: 39 (6 Partners)

• Hospitality and Tourism• Insolvency - Other Services• International Financial Reporting

Standards• Legal Services• Life Sciences• Manufacturing and distribution• Media• Not for Profit, Charities, Public Sector

consultancy• OMB/Family Businesses• Private Client - Personal Finance• Professional service firms - Other

Services• Property/Real Estate• Public Interest Enterprise (PIE) Audit

and Assurance• Renewable Energy and Environmental

Services

• Retail• Tax-Corporate and International Tax• Tax-General• Tax-Indirect Taxes• Tax-Research and Development Tax

Relief• Tax-Tax Investigation Services• Tax-Taxation International• Tax-Taxation of companies• Tax-Taxation of individuals• Tax-Transaction Tax• Technology• Technology Advisory Services• Telecoms• Transportation• US GAAP reporting (for non US

Participants)• Wealth Management and Financial

Planning

Who’s who?

Praxity in Asia Pacific comprises a large number of highly respected industry trailblazers. Among them, industry chairs, committee leaders, power players, as well as Praxity Managing Board and Council Members. Many of the firm’s managing partners have initiated cross-border international assignments, including several notable pan-European client wins as a result of collaboration between ShineWing and German participant firm FALK & Co.

Arran Boote (William Buck Christmas Gouwland Limited)Chair of Praxity Asia Pacific region

Other key Praxity people within the Asia Pacific region include: Nikolas Hatzistergos: Managing Director of William Buck NSW, Praxity Governing Council and Membership Committee MemberZhang Ke: Chairman of ShineWing, Praxity Governing Council (elect) Member

Location report

Regional fast facts

Arran Boote has served as Praxity’s Asia Pacific Chair for 6 years. International Advisory Director with New Zealand accounting and advisory firm, William Buck Christmas Gouwland, he specialises in business strategy and structuring in emerging markets. Arran has been instrumental in boosting ties between ASEAN and Praxity members and led a deal in 2014 with the second largest banking network in ASEAN securing an arrangement for ANZ Bank to direct all of their business clients in each ASEAN country to Praxity Participant firms.

Regional Office Holders:Stella Chen (Dixon Hughes Goodman), Deputy Regional ChairDamian Norris (Mazars), Deputy Regional Chair for TaxJunaide Latif (William Buck Queensland), Chair of Regional AuditTim Yu Wei (Mazars)Regional Head of Corporate Finance

Tighter economic integration is giving rise

to balanced growth in Asia Pacific with

businesses spreading investments to capitalise

on the widening opportunities.

The Remnimbi is now the 2nd most used

currency world-wide for documentary trade, surpassing GBP, Euro

and JPY

The ten nation ASEAN economic

community concludes in December 2015.

Capital spending in manufacturing has

been superseded by investment in consumer

markets, the digital economy and distribution operations, with all APEC

economies expanding their infrastructure.

Health and wellness are critical issues for

future prosperity in Asia Pacific due to the aging population and a rise in

chronic diseases.

Chair of the region, Arran Boote, shares his economic observations:

REGIONAL REPORT

Regional coveragePraxity has long had strong representation within Asia Pacific. It is a region of cultural contrasts and economic opportunities. Known for being dynamic and entrepreneurial, the region now shoulders more of the world’s economic activity.

Comprising Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, Singapore, South Korea, Taiwan, Thailand and Vietnam, the Asia-Pacific Economic Cooperation (APEC) has 21 member economies. A main strategic focus in recent years has been on greater collaboration and integration between these countries and their respective governments, bringing the region a step closer towards freer trade through the Trans-Pacific Partnership (TPP) and Regional Comprehensive Economic Partnership (RCEP). Underpinning this growth is the expanding consumer economy, driven in part by greater wealth and higher spending power.

Firms at a glance

Q&A

6 HUB 2015 ISSUE #3 HUB 7

Kicking things off with a social media seminar, Kari Schott of Inovautus Consulting presented the recent results of an accounting industry focused social media study. In this interactive session designed for Praxity, Kari led the discussions sharing the 2014 research on the state of the profession – as well as key opportunities where firms can improve. Kari conveyed to the group that social media adoption among CPA firms is still fairly unsophisticated. While much has been discussed, many CPA firms still struggle to effectively implement social media. Having set the stage with the study

Branding campaign makes its markFollowing a significant refresh of their brand at the start of this year, US Praxity Participant DHG has won the 2015 Association for Accounting Marketing’s Marketing Achievement Award for Branding.

findings and opportunities presented,the meeting moved on to a working session focusing on Praxity’s use of social media and the integration of social media and thought leadership on the new Praxity website. The North American team of marketing professionals shared their knowledge and insight on the topics with Praxity’s Executive Director Graeme Gordon and Head of Business Development Deborah Poulter.

Following a lively discussion led by Alice Grey Harrison, working group chair, the group agreed upon several key areas of focus for Praxity. Strategy is now being developed and in the coming months, participants will begin seeing implementation of the tactics developed by this group with a major emphasis on LinkedIn. Deborah comments:“With more than 225 million users worldwide, LinkedIn has become a tremendously valuable tool when making professional connections. It is invaluable for Praxity to be able to use the knowledge and experience of its firms’ marketers during the next stage of our strategy.”

Marketing specialists cast magic in Orlando

Looking forward to 2016, Alice Grey confirmed that the 2016 North American Marketing Working Group meeting will be held next May in New Orleans, Louisiana. All marketing specialists are welcome and as they say on Bourbon Street … let the good times roll!

Want some of this Praxity Working Group action? To find out more about how you can get involved and share your marketing prowess with global colleagues, contact AliceGrey.Harrison@dhgllp.com working group chair, Alice Grey Harrison

For more information or to view just how central knowledge sharing is to the DHG brand, visit www.dhgllp.com

Recognized at the annual Accounting Marketing Association Summit Gala in June, the win reinforces that the brand, launched on 1 January 2015, has quickly accomplished its initial mission in relation to conveying the resourcefulness of DHG’s professionals and creating a robust online ‘knowledge share’ resource. Commenting on this marketing win, Matt Snow, DHG CEO said: “We are honored to be recognized with this award. The changes have been positively received in the marketplace and I continue to hear great feedback from clients, prospects, recruits and our people.”

Phase two has involved rebranding the people strategy this summer, touting the tagline “Life Beyond Numbers” and focusing on three aspects of the firm’s culture: people, careers and flexibility. The careers website showcases the new people brand and highlights a day in the life of several DHG employees.

To see this strategy in action, visit www.dhgllp.com/careers or check out the social campaign #mylifebeyondnumbers in which DHG employees showcase what they like doing outside of work (beyond the numbers!).

The marketing leaders and team members from all of the North American Praxity firms gathered in Orlando, Florida in early June for the annual Marketing Working Group meeting. Held in conjunction with the Association for Accounting Marketing (AAM) Summit, it was a magical meeting filled with idea sharing, brainstorming and fellowship.

Alice Grey Harrison (L) and Jenny Long (R) from DHG celebrate the firm’s marketing win at AMA gala.

Deborah Poulter, Alice Grey Harrison & Jenny Long (DHG) enjoy some downtime at Epcot, Florida

MARKETINGFEATURE

The insurance sector has been singled out by the OECD in its BEPS programme, with the newest Permanent Establishment proposals raising fresh concerns among groups using captive insurance as a risk finance tool.

Renáta Ardous, International Tax Policy and Corporate Tax Senior Manager, and Stephen Brown, Director of the Financial Services Tax Team at Mazars articulate some of the key concerns in relation to reinsurance and why insuring risks in a different territory to where the insurance income is generated doesn’t constitute shifting profits for tax purposes.

What’s next and what can insurers do to prepare?There is so much change coming. As well as trying to consider how these changes might affect insurers, it’s important to understand that the issues and actions coming from BEPS cannot be looked at in isolation as most will impact on others. Advisors and insurers need to work closely together so that experience of the business is brought together with detailed knowledge of the BEPS issues.

Insurers brace themselves for BEPS

To view the latest comments submitted by Mazars on BEPS Action 7, please visit pages 231 to 236 of the revised discussion draft document www.oecd.org/ctp/treaties/public-comments-revised-beps-action-7-prevent-artificial-avoidance-pe-status.pdf

What could the business implications be for insurers?Insurers may have to consider giving more Delegated Underwriting Authority to brokers. This will apply in particular to big accounts, as there remains a risk that the new proposals would regard them as Dependent Agents. It is still likely that even where new PEs are created, there will be little or no profit to attribute to those PEs. This means that administrative filing would be the main burden. And of course there could be detailed discussions with the relevant fiscal authority for new PEs filing little or no profit, creating a further burden for the insurance group.

What BEPS Actions are likely to have the biggest impact on insurers? The proposed changes to the rules for Permanent Establishment (PE) could have a significant impact. Whilst the revised draft removes the insurance specific section around collection of premiums, it still has the potential to affect existing insurance business models. Country-By-Country Reporting (CbC) also poses some particular issues, particularly for those in the Lloyd’s market due to the special way in which Lloyd’s profits are taxed over three years. Additionally, although the new UK Diverted Profits Tax (DPT) is not directly a product of BEPS, it has been brought in to tackle the same risks and it is something the insurance industry is currently examining.

Is this connected to where risks are underwritten? The OECD has specific guidance on attribution of profits to insurance. Lloyd’s would generally be considered low risk in the UK because of the role that Lloyd’s plays centrally to compliance for the market. It also negotiates closing agreements around the world with tax authorities. Although we don’t envisage BEPS targeting the Lloyd’s market specifically, as noted in question 1 the taxing of Lloyd’s profits over three years does impact CbC reporting.

What options were put forward?The OECD’s first discussion draft presented two options (Options M and N) aimed at situations where foreign insurance companies do large-scale business in a State without having a PE in that State. It noted, however, that insurance (including re-insurance) raised difficult issues regarding where profits that represent the remuneration of risk should be taxed. The draft noted that a change to the PE threshold would not address cases where the remuneration of risk is shifted through the payment of insurance or re-insurance premiums to an associated enterprise that performs no functions in a State, suggesting that it might therefore be more appropriate to address the BEPS concerns related to such cases through the adjustment of the profits of the local enterprise from which the risk-remuneration is being shifted.

Which proposals are likely to be adopted? In the light of the stakeholders’ written comments and a large number of interventions during the public consultation meeting of 21 January 2015, the OECD follows the view that insurance should be treated like any other business. In Section D, Working Party 1 concluded that no specific rule for insurance enterprises should be added to Article 5. It was also suggested that any BEPS concerns related to insurance should be addressed through the transfer pricing rule.

Are there any special measures coming?Based on the comments and analysis already included in the October 2014 discussion draft, it was concluded that Option N was the better approach and, therefore, that no specific rule for insurance enterprises should be added to Article 5. This means that concerns related to cases where a large network of exclusive agents is used to sell insurance for a foreign insurer should be addressed through the more general changes proposed to Art. 5(5) and 5(6).

Could reinsurance be recharacterized? A genuine reinsurance contract where there is a transfer of risk would be difficult to recharacterize. There is potentially a higher risk for products in the Alternative Risk Transfer where there is no or limited transfer of underwriting risk. However, in certain instance, the UK sees reinsurance as a way of diverting profits from the UK and it’s guidance around DPT gives an example for the whole arms length premium to a captive could be subject to 25% DPT. Additionally we understand that the current OECD guidance around transfer pricing and reinsurance is to be re-written, and that will clearly have an impact going forward.

Vendor glut imminent suggests Exit SurveyCompetition between vendors in the Australian mid-market looks set to hot up with 270,000 businesses looking to sell up by 2020 according to the latest Exit Smart Survey conducted by William Buck.

A result of the Baby Boomer and Builder generations, three quarters of business owners surveyed intend to sell their business over the next ten years, with 65% of these expecting to exit within five years. Expectations are high, with a third of business owners seeking a sale price above their business’ current market value.

With vendors expected to outweigh purchasers, values could deteriorate. “In our experience, most business owners only seek advice when they are actually ready to sell,” explains Daniel Coote, Corporate Advisory Director. “While it’s possible to prepare the business for sale quickly, it can often lead to a band-aid approach to issues rather than a structured process that truly adds value.”

Woodman, spare that tree!There was a time when much of the world was thickly forested, but thanks to the rapacious demands of the human race great swathes have fallen to the onslaught of axe and chainsaw.

To counter such global devastation the Programme for the Endorsement of Forest Certification (PEFC) was founded in 1999 and today is the world’s largest forest certification system. Last October, the PEFC Council endorsed the Indonesian Forestry Certification Cooperation (IFCC) standard and since then two major pulp and paper companies in Indonesia, Asia Pacific Resources International (APRIL) and Asian Pulp & Paper (APP) have undergone third-party audits of their forests covering over 600,000 hectares.

At an award ceremony in early June, the two pioneers received the initial PEFC-endorsed certificates for sustainable forest management, which are valid for three years. Ben Gunneberg, CEO of PEFC remarked: “This achievement highlights the progress that local stakeholders have made in advancing sustainable forest management in the country.”

Being a certification firm, Praxity Participant firm AJA Sertifikasi Indonesia has moved rapidly to fill a void in the sustainable forestry and palm oil sectors, as well as in human rights certification with its elder sister firm, Moores Rowland Indonesia. Working with AJA Europe, which obtained accreditation as Indonesia’s sole initial PEFC assessor through the Italian Accreditation Body, ACCREDIA, AJA has already certified over 600,000 hectares of forest. According to Certification Manager, Lillian Kallman, the firm expects to certify a further one million hectares in the coming months.

Speaking at the first AJA Europe Conference in Rome in late May, Lillian laid out details of the PEFC bottom-up approach to sustainable forest management certification, including the requirements and advantages that it brings.

As always, AJA Sertifikasi is open to discussing the tools available for sustainable forest management with Praxity Participants. For if we are to stall the latest mass extinction event, it might at times do us well to recall one of the earliest environmental calls – Woodman, Spare That Tree!

This is an excerpt from an article prepared by AJA Sertifikasi, which recently appeared in InterContinental Finance magazine.

European Tax Awards 2015Flick Gocke Schaumburg has been named Germany Tax Firm of the Year at this year’s International Tax Review’s European Tax Awards.

The ceremony, hosted at the Grosvenor House Hotel in London on 21 May, awarded prizes to the leading tax firms across Europe. This year, Flick Gocke Schaumburg was also nominated for Germany Transfer Pricing Firm of the Year, a title won by the firm just last year. LeitnerLeitner, also a member of the Praxity Alliance collected the accolade for Austria’s Transfer Pricing Firm of the Year.

"Woodman! Spare That Tree!" (1837) A Ballad (taken from a poem published in the New York Mirror, written by George Pope Morris, 1802-1864).

The last edition of HUB in 2015 will be published in early December. Please submit your stories to hubmagazine@praxity.com by 30th October 2015.

Keeping Up with the Praxitarians

Fast factsIf you find that explaining the depth, reach and expertise of Praxity members to clients or

colleagues a bit of challenge, the Executive Office has prepared a short

snapshot (see advert on the back page of this HUB). In addition to providing some quick answers, it

helps to put the size of the Alliance into a context that clients can quickly grasp.

Breaking newsIn our industry, news and

trends don’t stand still for long. That’s why Praxity now refreshes

our online news section with at least two new articles, many with a client focus, every week. In the first three

months of its ‘go live’, analytics showed site visits increased by over 78%, the

content pages were viewed 191% more times than the previous

year, bounce rates fell by 11.2% and exit rates

by 43.8%

Socially activeAside from Graeme having a

more regular blogging gig, Praxitarians are also becoming regular tweeters (but only when the subject matter

warrants it!) Our Twitter account now has 330 followers.

twitter.com/praxityalliance

Audience survey Launched this summer,

Praxity will run a short survey twice a year to gauge from Participants

where additional country representation might be required. If you wanted to provide input but missed the deadline, don’t worry. Another survey will take place in December 2015. Results will be

shared swiftly online.

•Anupdated2015TwinklePoster (April 2015) showing office locations visually•Anupdated2015printready Twinkle brochure•Printreadynewclient-focused brochure 'Who Is Praxity'•WhoisPraxityvideo,availableto embed in presentations and websites•Printreadygenericandtaxfolders, which members can insert meeting documents and business cards into (US sized folders available)•APraxityPowerPointtemplate,ready to drop presentation content into and conveying a consistent image•ApprovedPraxitylogos•Doingbusinessabroadguides (35 in total)•Globalrealestateguide•Conferencepresentations•HUBmagazines(recentandarchived)•WeeklyalertsfromPraxity’sExecutive Director Graeme Gordon•Newbi-weekly‘TaxBlast’fromthe Praxity Core International Tax Working Group.

Via the Praxity extranet, members can gain access to a suite of resources that can be downloaded, customised with individual firm’s branding and printed to strengthen client pitches, as well as employee inductions. Browse the resource centre and you’ll discover:

Praxity in a nutshell From day one, the induction is a

critical point to engage and share the global vision, values and culture of our Alliance. Showcasing examples of how member firms collaborate on

assignments to benefit clients, and the variety of personal and professional opportunities this presents can help

to set the right expectations. To assist, Praxity has prepared a different presentation for new joiners, managers

and partners, so firms can pitch the message just right.

We might not be in the same league or as sensationalised as that other well-known global conglomerate, but the Praxity Executive Office is doing its best to keep up, share valuable resources with member firms and secure tabloid headlines.

Log into and explore the Praxity Extranet to find out more - www.praxity.com/extranet. If you need a password set up, please contact executiveoffice@praxity.com

Making headway with headlinesSince the last HUB report, Praxity member firms have enjoyed widespread coverage in a number of industry media outlets and our goal to become the ‘go to’ organisation for timely comment continues.

24-hours before Budget Day (8th July), Tax Notes

International approached Praxity to see if we could provide a budget comment from a UK

member firm. Oscar Wingham, chair of Praxity’s UK tax working

group obliged.

Renáta Ardous from Mazars provided feedback to Tax Notes International on the

firm’s reactions to news that the European Commission had finally

released its corporate action plan, plus Mazars was asked

for a response to the publishing of an EU tax haven blacklist

and the Common Consolidated Corporate Tax Base

proposals.

PM+M and Forrester Boyd provided comments to FMCG News (www.fmcgnews.co.uk) relating to the concentration of ecommerce businesses in

Northern England.

International Accounting Bulletin ran a BEPS piece

authored by Steve Amigone (DHG), Jerry Jonckheere

(Plante Moran), Will James (BKD) and Michael Schwart

(WeiserMazars) - www.internationalaccountingbulletin.

com/comment/beps---a-new-paradigm-or-just-more-

complexity-4582509

PRAXITY NEWS NEWS FROM PARTICIPANTS

To assist with early planning, the firm has prepared an Exit Smart checklist. To request a copy of this and the findings of the Exit Smart Survey, please email research@williambuck.com

For the full story, please visit www.fgs.de

8 HUB 2015 ISSUE #3 HUB 9

AJA Sertifikasi contributed a 1500 word piece on the

Programme for the Endorsement of Forest Certification and its success in gaining this

accreditation for two major pulp and paper companies to InterContinental Finance

magazine (see article above).

PM+M new Managing Partner Jane Parry talked

about Praxity in Accountancy Age - www.accountancyage.com/aa/interview/2416731/

best-practice-pm-ms-jane-parry-on-north-west-ambitions (see page 14)

Brussels may have an unwarranted reputation for being a stuffy bureaucratic EU administrative centre. But as delegates at this year’s annual Praxity Global Tax Conference and European Conference discovered in early May, it has a fun (and informative) side too.

Over three days the local ‘Lambic’ beer flowed, as did the conversations. And on the Monday evening, attendees from both conferences united at the ‘uber-trendy’ Spirito - a converted church, now nightclub - for some hip thrusting and jive talking (and a few more local brews!)

“It was without doubt one of the most collaborative conferences we’ve hosted to-date,” comments Praxity’s Executive Director Graeme Gordon. “Catering to everyone’s taste is always challenging, but after a full day of presentations about BEPS, the Monday night was a greatcounter-balance!”

London-based Timothy Lyons QC, opened the two day event with a political message: “As tax lawyers, we tend to see the OECD as a global tax organisation – it isn’t...it never was...yet it might be in the future.” He pointed out that while business is global, politicians are local and there rests the problem: “This whole BEPS programme is about helping domestic politicians catch up with businesses.”

Ian Brimicombe, Vice President of Corporate Finance at AstraZeneca then took the stage to share some insightful views on how the OECD’s program is likely to impact global companies:

“BEPS is generally welcomed by businesses as there has been an unfair playing field; we are looking for a co-ordinated and consistently applied set of international tax rules. The main challenge is defining economic value and where that value is created. For some stakeholders the redistribution of wealth is an objective. That worries me as it could result in a significant shift in the profit base as a result of multiple interpretations of transfer pricing guidelines.”

As well as sitting through numerous panel discussions, delegates (some a bit groggy from the Monday night) worked through a multi-national business scenario for an entertainment company, examining a range of tax issues.

During the conference it became apparent that each country and region continues to have individual BEPS goals, with many taking a ‘wait and see’ approach for the final reviews of each Action.

Noel Cunningham, Mazars Ireland, led the presentation on Harmful Tax Practice and suggested one significant leap forward is the definition of what constitutes substance: “The latest Action 5 report brings some clarity to substance and intangible property. The Modified Nexus Approach is being adopted, which means that where Research & Development is located, it will be deemed to have substance. This affects any clients with patents and is definitely a space to watch.”

Underlining the value of the conference, Andrew Lam, International Tax Partner at MNP LLPC and lead panel presenter on Action 6 Treaty Abuse said: “Communication across borders is going to be vital going forward.

CONFERENCES

I anticipate us all having more involved discussions about treaty benefits and there will be more work in restructuring some of our client’s arrangements post-Action 6 and BEPS in general. We can assist by increasing communication, helping our clients prepare for the impact and anticipating specific issues.”

Echoing this view, Chair of the Praxity Global Tax Working Group Rob Wagner said: “Gaining global consensus, if that indeed happens, is going to be challenging. There are huge obstacles; change brings confusion and uncertainty. However, we have a lot of talented tax people all over the world and being able to tap into that local expertise, while providing a seamless global service, will be of huge value to clients as BEPS unfolds.”

A virtually full set of notes from the panel presentations

at the tax conference is now available online, with

additional commentary and quotes from representatives

all across the globe. Visit www.praxity.com

“Every country participating in the BEPS project probably has a different idea of what BEPS means. While I do not think tax authorities around the globe can successfully implement all aspects of BEPS, I think the exercise is healthy and we will see some changes in tax rules throughout the world. I think it would be unwise not to complete the process of raising and debating the issues so that governments increase awareness and determine what critical issues to address.”Rob Wagner, Praxity Chair of the Global Tax Working Group

“A potential result of the BEPS initiatives is the re-emergence of double taxation. In the private space especially, whenever there is change or disruption, this creates interesting opportunities for firms to assist clients with tax planning. I also envisage there being a lot more work in relation to dispute resolution and multiple countries trying to claim rights to taxable income.”John Durland, Praxity Chair of the Core International Tax Group

“We need to guard against new business models being used as a pretext for taxing income beyond that which arises from functions, assets and risks within a country. Physical presence is the most administrative and appropriate rule, even in the digital age. VAT is the appropriate tax based on consumption and the US view is don’t change the income tax definitions.”Mike Schwarz, WeiserMazars“Overall, PPT has been accepted as a concept and Action 6 is viewed as a shield (not a

sword) only now it has a sharper edge. Widely speaking, low tax is not a real cause for concern providing it is for a legitimate commercial practice. However, it does raise the issue and question, are some countries providing a platform for treaty shopping?” Arran Boote, William Buck Christmas Gouwland

“South Africa is certainly not as engaged as Europe on BEPS. There is no patent box regime in South Africa. However, the Revenue Authorities have appointed a judge that is well-versed in tax to look at BEPS and how it should be accommodated.” Mike Teuchet, Mazars South Africa

“Action 8 emphasizes that it is important to establish the exact nature of the intangible; defining it can sometimes be very difficult. In some cases the intangibles can be combined with different transactions, such as services or trademarks. Another important issue is to establish whether the IP has value in the first place.” Angeline Zioulas, MNP

Overall, I think that BEPS will be positive for emerging economies and a fairer system. Previously, profits were stripped out of these developing countries and transferred to the parent company. Morally, we are no longer content for multinationals to do this. David Sayers, Mazars UK

“Internationally active companies should properly assess their status in each country with a view to understanding the implications Action 5 will have for their entitlement to claim the benefits of particular patent box regimes. Clients looking to establish a new “box” will have until 30 June 2016, so they need to hurry.” Dick van Sprundel, Mazars Netherlands.

“From a client perspective, CbC reports and dispute resolution certainly presents more opportunities for Praxity participant firms to collaborate. It’s a real advantage to be able to tap into local teams to handle the local aspects.” Will James, BKD

When in Europe …Running concurrently with May’s Global Tax Conference, European Praxity colleagues also took the opportunity to link up in Brussels

and exchange views.

The Corporate Finance team at PM+M used the forum to debate the needs of owner managed and SME clients, ensuring they receive the same

level of coordinated international service in corporate finance as larger corporate businesses.

Commenting about the value of the conference, David Gorton from PM+M said: “The event strengthened ties between the advisers in different countries and improved everyone’s understanding of corporate finance markets across

Europe. Our clients and professional network will benefit from our depth of knowledge and contact base whenever they look to do a transaction involving

a European business. Particularly impressive features were the depth of understanding of the renewable energy sector of our German colleagues and the widespread knowledge across our European firms of engineering and manufacturing business transactions.”

Bottoms up to Brussels

To view the presentations, please visit www.praxity.com/conferences

10 HUB 2015 ISSUE #3 HUB 11

The 2015 Praxity Global Conference in Beijing will draw all these ideas together, centring on the critical trends that are shaping our profession’s future and how to embrace change. As competition stiffens, this is a topic on the minds of many organisations.

Peering into the future

A new look for accountancy in 2020

A survey by Robert Half has shown that 92% of

CFOs in the UK alone find it either very or somewhat

challenging to source skilled professionals. In Germany this

figure is 85%; 95% in Hong Kong; and in Australia 94%

find it challenging.Research has shown that

accountants of the future will need to be:

True leaders: Inspiring others through

knowledge sharing, finding possibilities and developing

people’s strengths.

Interpersonal communicators:

Delivering and exchanging meaningful information

using appropriate context so others can easily grasp

the message.

Strategic thinkers: With the aptitude to link data, knowledge and

insights for the provision of quality advice.

Effective collaborators:

Engaging others, working across boundaries

to turn challenges into opportunities, with the

ability to consider the whole picture

(past, present, and future context).

Digitally savvy: Adept at anticipating

future developments and how technology improves data transparency, efficient

exchange etc. leading to the growth of trusted

business advisors.

12 HUB 2015 ISSUE #3 HUB 13

FEATURE

In 2020 the automatisation with regards to IT tools’ support for the accounting profession’s work will have progressed significantly. Clients wish to be informed about their financials and the related compliance processes at any moment in time, irrespective where they are and what device they use. Therefore, our profession has to significantly invest in IT tools and processes as well as in people, who are capable to implement and run them within our firms. Besides the classical consulting work, clients will perceive the added value provided by us mainly in time saving as well as risk mitigation in their compliance processes. Therefore, we have to own both, tools and processes.

René Schöb, Country Managing Partner – Head of Tax Advisory Mazars

There will continue to be more focus on specialty within industries, and within each industry, successful firms will be those that can use innovation to diagnose future business issues and develop timely, effective solutions. Technology will play an increasing role in these changes and solutions. I believe that clients will form the expectation that firms must bring solutions almost concurrently with identifying the problem. Since innovation is key, firms must be agile and suitably postured to allow its people to think and act quickly, without the unnecessary bureaucracy that often comes with a larger firm.

Matt Snow, Chief Executive Officer Dixon Hughes Goodman LLP

Putting aside the contribution of financial market instability - technology, recruitment of talent and the power of emerging markets are driving the transformation of the global accounting market.

Firms have recognised this and are now looking to new markets to expand their business and market share. Increasing competitor pressure means that accounting firms have had to build capacity and expertise in areas traditionally associated with top-tier firms. As a result, survival for professional firms is no longer about hourly rates, it’s about having a unique point of differentiation in the market.

Marco Carlei, Managing Partner ShineWing Australia

While no one can predict the future, what we do know is that it’s going to be an exciting challenge. The Future of Accounting report (2013) highlights the next decade being a period of rapid change and continuous transformation within the profession; outlining specialisation, globalisation, regulatory pressures and the less profitable low value services disappearing, as just some of the contributory elements.

Firm demographics in 2020 will require the addition of flexible working hours and consideration of a healthy work/life balance to attract and retain staff. The Generation Y workers will look to be working for the firms with the most up-to-date digital tools and best opportunities to learn and grow.

Use of the most up to date technology within practices will be essential. Social media will likely be the primary means of advertising, and the go to source of information for clients when looking to establish the credibility of a firms reputation and brand. Employment of social media and marketing specialists will be essential within firms if they wish to keep up with the numerous online social networks and to ensure they optimise their potential as a key source for client referrals and new prospects.

The report concludes that ‘firms able to adjust will thrive, as consumers and businesses turn to accounting and tax professionals not just for financial reports and tax returns, but to help them navigate and succeed in a complex and rapidly changing world’.

We spoke to our professionals and here's what they think the industry might look like in 2020...

Demand for fresh accounting blood continues to grow but skills shortages refuse to loosen their grip, causing growth to halt.

In the current environment the ageing practices that have facilitated growth in the past will no longer cut it. A strong supply of top quality talent with a wider business perspective is fundamental for serving the complex demands of a rapidly changing business landscape. And sharing knowledge and insight through collaboration, as Praxity participants know all too well, will be key.

An ethical cornerstone In a July blog by Graeme Gordon, inspired by the ICAEW July convention, he identified the historical characteristics and attributes that will stand the test of time going forward. High among them was ethics.

"Whatever technological advances we make over the next decade or two," Graeme wrote, "Whatever the geo-political landscape becomes, maintaining the highest ethical standards is key to being able to deliver the best quality, value-added advice and service to our clients wherever they are in the world."

Indeed, whatever changes and challenges may come, ethical conduct must be at the heart of every organisation and the decision-making process. As we prepare for 2020 at Praxity, we will be making sure we follow the highest ethical standards, using them as a guiding light into the future.

To find out more about having a 2020 mindset and preparing for the future, join or follow the 2015 Global Praxity Conference in Beijing.

The world is transforming and so too is the accountancy profession. With the countdown to 2020 underway, organisations need to be prepared, agile and ready to change. This is something the team at Praxity is also dealing with and currently we’re focused on adapting in the right way to assist our clients as they continue on their personal journey, helping them to capture the opportunities that lie ahead.

What got us here won’t get us there

http-download.intuit.com/http.intuit/CMO/intuit/future-ofsmallbusiness/intuit_corp_vision2020_0111v5.pdf

HUB 15

Putting brand value into a commercial context

Assisting contractors in “New Govconomy”

PM+M appoints multitasking Jane as MPBlackburn-based firm PM+M has a new Managing Partner at the helm - Jane Parry. She replaced Stephen Anderson on 1 May 2015. Stephen will remain a partner for 12 months to ensure a smooth transition.

NEWS FROM PARTICIPANTS

David Haigh, Brand Finance CEO (L) discusses brand valuations with Mark Carnduff, Senior Transfer Pricing and International Advisor, HMRC

On 22 June, Brand Finance, in collaboration with Praxity and Mazars, hosted an insightful forum at the firm’s new city HQ - Brand Exchange. Tax and finance representatives from some of the leading fashion, spirits, property and construction brands, plus key media titles, joined the debate that focused on the future of brands and intangibles in a post-BEPS environment.

“Brands and other intangibles are some of the most difficult and contentious sources of transfer pricing and, as a result, are not particularly well understood,” writes Brand Finance Chief Executive David Haigh. “This leads to either very vague or very convoluted rules. Given the release of BEPS Action point 8, we attempted to give clients and the tax authorities rewriting the rules some commercial context and clarity.

The meeting reinforced that contrary to public belief, the majority of multinational companies do not manipulate their brands/intangibles to keep money from the tax authorities. Brand reputation, security against disputes and rules that are aligned tothe commercial reality of their brands are key concerns for most clients.

Praxity Executive Director Graeme Gordon kicked off the discussions, followed by David Sayers, International Tax Partner, Mazars who highlighted that one of the biggest challenges in the future is going to be valuing the brand in each territory and attributing the royalty to this. “As transfer pricing professionals, we are reading documents and trying to think where BEPS is going in order to better structure their affairs going forward. Events like this enable us to get in front of clients and share advice that’s in line with the direction of BEPS.”

All attendees were keen to understand the best valuation techniques and how they could be used across the business. While all speakers presented the typical accounting valuations, Brand Finance emphasised that valuations for tax purposes need not be consigned to the annual transfer pricing report.

“Valuations based on insight and market research can have wide-ranging uses across businesses,” adds David Haigh. “Statistical techniques that deliver the end value can highlight areas of improvement or success for strategic management in addition to tax planning.”

www.brandfinance.com &youtu.be/T4se2gav0YU

Tax and finance practitioners from some of the leading global brands attended the invite only transfer pricing forum at the new Brand Exchange private member’s facility.

Tell us a story …BKDers like a good yarn, and in their latest instalment of BKDLife - which recently re-launched in digital-only format - plenty of insightful tales are shared.

BKDLife is digested by clients, firm professionals and alumni. In the newest edition, retiring Professional Practices Partner Steve Rafferty reflects on his fruitful, 36-year BKD career. Readers also can gain insight into the firm’s inaugural program for women leaders, travel with a partner to South Africa and hear from a jeweler who has been a loyal BKD client since WWII.

CEO Ted Dickman comments: “I have the privilege of speaking with a number of people and meeting with a variety of clients. Each one has a unique and interesting story to tell, and each brings a one-of-a-kind perspective to the firm.”

BKDLife Editor Matt Wagner adds: “This publication is our way of sharing and celebrating our people and our commitment to work-life balance.”

To read more, visit www.bkd.com/bkd-life

14 HUB 2015 ISSUE #3

Meanwhile, David Gorton, head of PM+M’s corporate services, was named senior partner and will balance his client portfolio with overseeing the firm’s marketing and business development strategies.

During a recent interview with Accountancy Age Jane discussed the challenges of retaining her head of tax responsibilities, existing client portfolio and juggling these with her new Managing Partner duties. She also skillfully addressed why the appointment of David to the new role of senior partner works for PM+M, plus dropped in a small Praxity mention!

Jane said the new structure “gives us flexibility, an opportunity to mix and match depending on circumstances. For the full story please visit

www.pmm.co.uk

Between 2012 and 2014, government spending increased 22%, from $87.6B to $107.5B, among recipient companies in the Washington metro region. Dubbed by Aronson as the New Govconomy, the US firm recently extended its range of services to assist contractors capture these growth opportunities.

Taking cues from the commercial market on how to strategize, optimize and realize for success, the company introduced several new packaged services. Tactics, such as streamlining operations, tightening up compliance strategies, and innovating to become more competitive are just several practical approaches put forward by Aronson’s government contracting practice.

“LPTA (lowest price technically acceptable) has wreaked havoc in the industry, but now that the worst of it is behind us, contractors have a brief opening to position themselves for the growth opportunities ahead,” emphasizes lead partner Lexy Kessler.

In addition, the firm has also partnered up with Deltek to launch an affordable and industry leading accounting and project management solution for government contractors. The Aronson Touchstone Program delivers Deltek’s cloud-based Costpoint Foundations ERP software solution, leveling the playing field for emerging contractors and giving them the edge they need to compete with established top tier contractors.

For the full stories, visit www.aronsonllc.com

http://blogs.aronsonllc.com/nonprofit/category/fraud-considerations-series-for-nonprofits/

Stamping out fraud - in 6 steps

If your firm has noted a prevalence of fraud within non-

profits check out Aronson’s informative 6-part blog series.

Running between April and June, it covers everything from industry insights to explaining the ‘fraud triangle’ common schemes and scams to watch for and how to

deter, control and fight it.

David is great at getting out and about, getting us noticed, coming up with ideas. I'm really good at juggling a lot of balls in the air and making the day-to-day stuff happen. So he and I work very well as a team."

For Jane, PM+M’s future strategy is clear - to become the north-west's best firm of finance professionals. Commenting on Stephen’s departure, Jane thanked him for his focus and dedication saying: “This undoubtedly marks a new era for PM+M. Stephen’s style of leadership has made a huge impact on the business and it’s an approach that we will be building on and taking forward. He has been an inspirational colleague.”

ShineWing upholds ACCA Innovation in Business message On 16 May 2015, ACCA Hong Kong hosted its annual conference. Among the joint headline sponsors was local Praxity Participant firm ShineWing.

Attended by over 500 members and guests from a large number of enterprises, the day’s programme centered on ‘Innovation in Business’ and explored how entrepreneurs should encourage and enable innovation, and the role of technology in driving this agenda. The Conference also discussed the rapid advances in information technology that are impacting the accountancy profession and what it takes to build an intrapreneurial finance function. To help put the opportunities into context, co-founder and the CFO of Hong Kong Television Network Limited presented an insightful business case showcasing the bold and creative ways that businesses accelerate strategic goals.

Joining the delegates were Mr. Roy Lo, Managing Partner, and Dr. Angus Ho, Tax Partner of ShineWing Hong Kong who exchanged views with other academics, business and accounting professionals on how to enable innovation amidst constant changes.

To find out more, please visit www.shinewing.hk

Transaction Services team strike a deal Praxity Participant firms have taken another collaborative leap forward, establishing a team of likeminded and highly competent Transaction Services (TS) professionals to share expertise and provide, when required, a seamless cross border TS client service.

The idea of bundling TS competence first cropped up during a breakout session at last year’s Praxity European conference in Heidelberg. Initiated by Torsten Kohl (FGS), TS experts from FALK, FGS, FIDES, Garbutt & Elliott, LeitnerLeitner and Mazars took charge hosting several follow-up conference calls to scope out the benefits of forming a European TS Working Group. The group agreed that the focus should be on sharing valuation and due diligence, competencies that are evident among all of the group’s founding members.

“Although there’s an intrinsic overlap, the agenda for this European TS working group won’t touch core M&A activities, notably identifying potential company sellers or buyers,” clarifies the group’s chair and sponsorGerhard Meyer.

In the last 12-months the European TS group, which formally kicked off at the Brussels conference in May, has begun to take the concept wider. Throughout June, Gerhard and the team struck up conversations with other regional Praxity TS experts. “We are keen to figure out if there’s sufficient cross over that will justify setting up a Global TS Working Group which we could launch in Beijing,” says Gerhard.

The answer, it would appear, is yes, with Praxity’s Global Tax & Fiscal Working Group also exploring the case for a sub-TS working group focusing on tax due diligence and tax structuring. During the Brussels meeting a conclusion was reached that Eric Klein Hesseling (Mazars, Netherlands) will chair this sub-group.

Robin Judd from William Buck, who will chair the Corporate Finance Working Group meeting in Beijing this October, also put forward the idea of a Global Corporate Action newsletter to communicate and share examples of best practice and examples of successful TS collaborations.

“We have such a diverse amount of TS talent through the Alliance,” emphasizes Gerhard. “As with any service, the ability to access regional and international TS expertise makes a real difference to each firm’s clients. We have the framework in place, now we need people to keep the lines of communication open.”

Could you offer some expertise to this newly formed Transaction Services Working Group? To register your interest, please email: gerhard.meyer@falk-co.de

16 HUB 2015 ISSUE #3 HUB 17

It is business as usual for UK Praxity Participant firm Albert Goodman following its acquisition of TP Lewis & Partners. The new company, named Albert Goodman Lewis, will be part of the Albert Goodman group and take total employees to more than 240.

News of the union filtered through in May following an active search by the 150-year old South West firm to find a North Somerset-based chartered accountancy practice that shares its heritage and values. Managing Partner at Albert Goodman, David Griffin describes his new colleagues as having a likeminded ethos to client service.

During the formal announcement David Griffin said: “This merger significantly strengthens our operations in North Somerset.

CEO describes German merger as ‘smart move’Audit and tax consulting firm Roever Broenner Susat has merged with Mazars in Germany, adding 51 partners and 730 employees. The merger means Mazars will strengthen its position at the heart of Europe, moving up from 15th to 8th position in the world’s fourth largest economy.

Founded in 2012, Roever Broenner Susat is a German audit and tax consulting firm. Its clients include private individuals, small and medium-sized partnerships and corporations, large publicly listed corporations and groups, and non-profit organisations, foundations, and public sector entities.

In line with its global growth strategy, this merger speeds up Mazars’ development and strengthens its presence in Germany. Overall headcount has increased threefold to 1,000 and 68 partners as a result of the strategic union and creates a business with a turnover of €110m. In global terms this will account for 10% of Mazars’ annual revenue.

Welcoming Roever Broenner Susat partners and staff into the firm, Mazars’ Group CEO and Chairman of the Executive Board Philippe Castagnac said: “Mazars has a very strong European heritage and this is a smart move. One important part of the rationale behind the transaction is to take advantage of new opportunities arising from the EU’s audit reform legislation, which will become binding in 2016 and has the potential to change the face of the market.”

Christoph Regierer and Gregor Kunz, Partners at Roever Broenner Susat, will join Mazars’ Group Executive Board and Mazars’ Group Governance Council. They commented: “We share with Mazars a culture that is demanding and independent. Our capacities are very complementary and this merger will allow us to provide our clients with quality internationally-focused services.”

Former mayor connects with BKDBKD’s Risk Advisory Services division is working to grow its public sector consulting practice, attracting nationally recognized figure Stephen Goldsmith—former mayor of Indianapolis and deputy mayor of New York City—to consult on projects and provide engagement oversight.

The practice will focus primarily on helping public entities reduce service costs, improve service quality and use “big data” technologies and methodologies to improve cost efficiency.

“The addition of the public sector practice is a great example of BKD’s continued efforts to better serve the not-for-profit, government and higher education sectors,” comments the division’s managing partner, Jim Snyder.

BKD Director Mike Brink, an experienced public sector consultant with experience in public-private partnerships, will serve as senior client executive.

NEWS FROM PARTICIPANTS EXPANSIONS

(L-R) Alison Kerr, Michael Cahill, Terry Lewis, David Griffin, Chris Lewis and Lesley Jones celebrate the formation of Albert Goodman Lewis

For more information please visit www.bkd.com

BAU after South West mergerWe have an ambitious growth strategy, involving both organic growth and merging with smaller practices that add value.

“TP Lewis & Partners is a highly successful local firm that enjoys a solid reputation and strong portfolio of owner managed and family businesses, partnerships, sole traders and high net worth individuals.”

Terry Lewis, founder of TP Lewis & Partners, which has offices in Burnham-on-Sea and Wedmore added: “We are thrilled to merge with Albert Goodman. This move provides our client base with security and continuation, as they will be working with the same people, just under a different banner. As far as our clients are concerned it is business as usual.”

Albert Goodman provides accountancy, tax and financial planning services from offices in Taunton, Chard, Yeovil, Bridgwater, Weston-super-Mare and Weymouth, and can now add Burnham-on-Sea and Wedmore to the list.

For the full story, please visit the news page at www.albertgoodman.co.uk

FIDES Grows in

Northern Germany

BREMEN, August 2015 – Praxity’s North

German member FIDES has announced that it

has acquired Hoehns and Partner, a firm of tax

specialists in Hannover. The move strengthens

FIDES’ position as a leading mid-tier firm in Northern

Germany serving the German “Mittelstand”. This

acquisition means that Praxity now has an office in

Hannover, the capital of the state of Lower Saxony.

Established in 1990, Hoehns and Partner has

4 partners and 40 staff. The combined firm

is expected to be 300+ partners and staff strong

and will operate under the FIDES name.

According to a latest survey of professional

accounting firms in Germany, FIDES

ranks among the Top 20

largest in 2014.

Nobani’s managing partner receives new designationMr. Mohammad Al-Nobani, founder and managing partner of the Jordan-based participant firm Nobani & Co has been awarded the title of Certified Innovation Manager.

The program, run by the University of Leipzig in Germany, in cooperation with the International SEPT Program and the Business Development Center (BDC) commenced in February this year. Comprising two practice-oriented training modules on innovation management concepts and tools and one coaching module to develop an innovation project, successful completion resulted in the new Certified Innovation Manager designation.

“Innovations are important factors for strengthening the competitiveness of any enterprise, including ours,” comments Mr. Al-Nobani.

HUB 1918 HUB 2015 ISSUE #3

More chart topping success for US participantsAccounting Today has released its 2015 list of the Top 100 Firms in Accounting with a large number of US Praxity participant firms featuring in the overall Top 25.

BKD placed at 13, followed by Plante Moran at 14, Moss Adams 15 and DHG at 17. All four firms appeared in the publication’s top tax firms list too.

WeiserMazars was ranked 24. Kaufman Rossin Group moved down two spots to 54 and Aronson ranked 72.

With regard to regional leadership, BKD topped the Midwest list, Aronson placed 3rd in the Capital region, Feeley & Driscoll placed 6th in New England, Plante Moran 2nd largest in the Great Lakes territory, Kaufman Rossin Group 5th in Gulf Coast and WeiserMazars listed 5th in the Mid-Atlantic. DHG and Moss Adams secured 1st spot in the Southeast and West coast listing respectively.

First, Washington Technology singled out Aronson Capital Partners founder and partner Larry Davis as a top M&A advisor noting some of the biggest deals closed by the investment branch of Aronson last year. Now, ACG National Capital - a leading authority on corporate growth in the mid-Atlantic region - has seized the opportunity to appoint him to their Board of Directors, tasking Larry with driving strategic leaderships during his four-year tenure.

Larry, who is widely acknowledged for being an industry expert, is regularly sought out by emerging companies. In 25 years he has advised on countless mergers, acquisitions, divestitures, and financings. Among the 2014 deals noted by Washington Technology were:

•TheacquisitionofOptimos,IncbyAcentia,LLC (a portfolio company of Snow Phipps Group, LLC.) •ThesaleofVenturaSolutions,Inc.toTheBoeing Company [NYSE: BA] •TheacquisitionofthePreclinicalServices Business of Advanced Bioscience Laboratories, Inc. (ABL) by BIOQUAL, Inc.

For several years now Plante Moran has undertaken a concerted effort to retain women and create a clear path for them to become leaders in the firm. And now for the sixth consecutive year the US firm has been named one of the 10 best public accounting firms for women by the Accounting MOVE Project. Moss Adams, where women now comprise 26% of its partners, also made the list.

The list, released by the Accounting & Financial Women’s Alliance and the American Women’s Society of Certified Public Accountants recognises firms that demonstrate:

Audex gains further market share Russian firm Audex has once again appeared in the top 50 largest accountancy companies in Russia.

In the list, prepared by the respected magazine Kommersant-Dengi, Audex moved up two places reaching number 30 in the 2014 ranking. In 2013 Audex placed at 32, with total revenue being the main benchmark.

The figures revealed that the total audit market fell by 2.8% for total revenue. “The overall picture however is better than last year, when audit revenue dropped by 3.25%,” explains the firm’s managing partner Ayrat Gimadutdinov.

“There’s also a key trend taking place in Russia where due to sanctions many enterprises are starting to reject the services of the Big 4. Legal consulting and management consulting are growth markets and we’re anticipating higher demand for tax inspection services. Our firm is strong in all of these segments, so the outlook continues to look good.”

Responsive Rick a model leaderRick White, Partner-in-Charge of DHG’s Metro DC Construction Real Estate Practice, recently won the SmartCEO’s CPA & ESQ Award.

Honoring the Mid-Atlantic region’s most enterprising accountants and attorneys for their leadership, innovation and achievements, Rick was named the winner for the Industry Practice category. As evidenced by this and his 2013 SmartCEO’s Power Player award, Rick’s enthusiasm towards clients makes him a model leader said colleague Brian Carlton.

Client Jeffrey Clum commented: “Not only is Rick responsive, but he is extremely knowledgeable about the construction industry. When there are tax alerts, accounting and auditing updates, etc. he is ahead of the crowd.”

Firm favourite for wealth managementBKD Wealth Advisors (BKDWA) has received two industry nods for its wealth management prowess. In addition to making the 2015 Top 100 Wealth Managers list from Forbes, the business was among CNBC’s Top 100 Fee-Only Wealth Management Firms for the second year running, reaching No.5.

Commenting on these prestigious honors, BKDWA President Jack Thurman said: “These rankings are testament to our focus on creating a client experience that is unique in the wealth management profession. I am very proud of the national recognition this provides our team.” BKDWA, which launched in June 1998, currently has more than $2.5 billion in assets under management.

Two 40 under 40 honorees Kaufman Rossin’s Peter Smith has been selected as a National Association of Certified Valuators and Analysts “40 Under 40” honoree. A manager in the firm’s forensic, advisory and valuation services department, he was recognized for demonstrating excellence, superior quality, and the spirit of pioneering.

In addition, Risk Advisory Services Director Bao Nguyen of Kaufman Rossin has been selected as an honoree for the 2015 South Florida Business Journal’s “40 Under 40” awards, which recognize young professionals for their achievements in business and in the community.

AWARDS

Champions for women in leadership roles

Top deal closer singled out for new role

To view the full report, please visit http://digital.accountingtoday.com/accountingtoday/top_100_firms_2015#pg1

For the full stories, please visit www.kaufmanrossin/news

• Consistent, measurable progress in advancing women • Proven and continually evolving programs that retain and advance women • An intrinsic link between the firm’s advancement of women and its growth/succession goals

Sue Perlin, leader of Plante Moran’s Women in Leadership initiative, comments: “A quarter of a century ago we set up a WorkFlex Committee to create policies and practices to help retain all staff, including women and working mothers, and in 2012 we launched a Women in Leadership initiative to attract, retain, develop

and advance women into leadership positions within the firm. Our inclusion on the first and subsequent lists demonstrates our initiatives are making a difference in this challenge that many professional service firms are facing.”

At Moss Adams, Forum W is the firm’s seven-year effort to align its culture with the advancement of women. “The emerging generation of partners has grown up with Forum W, so they’ve seen the benefits and they know the difference it makes” said Jen Wyne, director of human resources at Moss Adams.

More at www.plantemoran.com and www.mossadams.com

For more information, please visit www.audex.ru

For more information, please visit www.aronsonllc.com

For the full stories, please visit www.bkd.com

For the full story, please visit www.dhgllp.com

DHG Academy graduate awarded 40 under 40 titleHeather Cozart, a Partner in DHG’s Financial Services Group, has received a 40 under 40 award from the Triangle Business Journal.

A graduate of DHG’s Leadership Academy and the Raleigh Chamber of Commerce Leadership Raleigh Program, Heather joined Dixon Hughes Goodman in 2007.

This award recognizes outstanding professionals under the age of 40 and her natural leadership and community involvement coupled with financial industry acumen, ensured Heather, one of 200 nominations in the 2015 awards, got a place at the top 40 table.

For the full story, please visit www.dhgllp.com

Power to Kaufman & Heckaman

The South Florida Business Journal has named Kaufman Rossin’s CEO and

founding principal Jim Kaufman, plus managing principal Blain Heckaman ‘Top

100 Power Leaders in Law and Accounting’ for 2015.

The list recognizes the men and women who have made notable contributions in

their respective fields in the past year that have contributed to South Florida’s business economy.

For the full story, please visit

www.kaufmanrossin/news

20 HUB 2015 ISSUE #3 HUB 21

FEATURE

National Chairman of William Buck, Nikolas (Nick) Hatzistergos sits on Praxity’s Governing Council and Membership Committee and prides himself on keeping a level head and staying calm under pressure - saving his emotion for Australia’s National Rugby League.

Nick opens up about what drives him professionally, how the Alliance supports his firm’s success and what this international offering means to William Buck clients.

About me… My business interest started as a teenager; my dad owned a corner store in the 1970s, providing my first taste on running a successful enterprise. At 23, I became the youngest accountant to be granted a practicing certificate by the Institute of Chartered Accountants Australia (ICAA), and in the early 1990s I joined William Buck, helping to establish the Sydney firm. William Buck was… A man of integrity and vision. He was only 25 when he started his own practice. It was 1895 and Australia was in the midst of one of its worst economic depressions. Through hard work and determination William Buck soon went on to build a reputation as the firm of choice among Australia’s business community. William Buck’s desire to help the community extended beyond his own firm; his goal was to raise the quality of the Australian accounting profession. Founding his own accounting school, he helped thousands of students attain their professional qualifications and admission to the ICAA. Together with our 75 Directors and 700 staff, I’m exceptionally proud of our heritage. This year we celebrated our firm’s 120th anniversary and were fortunate to be joined by William Buck’s grandchildren and great-grandchildren. Having spent over 12 months tracing William Buck’s history and family, it was very rewarding evening for me.

Our economy is… Very stable and resilient; Australia largely avoided the global financial crisis hardships. China is our largest trading partner, and while

the current slow-down in their economy will have an impact on key industries (including Australia’s major export of mining) it is unlikely to be calamitous. Although economic growth in China has fallen from 10% to 7%, the country has a population of 1.2 billion which represents an enormous market. We believe that growth of 5%+ is far more sustainable for China, and if this is the case, then we will continue to see opportunities.

I chose accountancy as my lifetime profession… Because of my dad’s determination that I become educated… I had wanted to be a professional sportsman! Growing up in a blue collar suburb where the majority of families lived in housing commission I was eager to leave school early. A stubborn 12-year old, I informed my dad that I was ready drop the books and take up part-time work. Dutifully, he arranged a day’s experience in the small goods factory where he then worked. Wearing my school uniform (I had no other ‘formal’ clothes), I spent the day in the freezers helping load and unload small goods and saw first-hand how difficult the work was and how badly people were treated. The next day I was back at school and ready to start studying again! From that day forward, I knew that I wanted to work for myself; in time the accounting profession became the perfect fit. It allows me to use my capabilities to help others succeed. The callousness of a factory line manager from that day’s experience stuck with me. I hold dear the ethos “treat others how you wish to be treated” and encourage our directors to live by that value.

I treat the success of our firm as a journey… and although fortunate to have a lot of professionally satisfying memories, I’d like to think that my proudest is yet to come. Approaching 2000, we developed our own education programme and solution for companies challenged by the Millennium Bug. Co-branded with the ICAA and IBM, this was sold to the top 50 companies in Australia; no mean feat considering William Buck was still a relatively small firm then. More recently, we’ve successfully brought the faculty members of Harvard to Australia to run a leadership course for over 170 directors and managers. As a firm we relish these opportunities to continue evolving and developing. While not on the field, being a board member for NRL team The South Sydney Rabbitohs, I feel that I’ve made a meaningful contribution to the club’s success. Just15 years ago the team was expelled from the competition for two years, and in 2014 they won the Premiership!

I’m motivated by… The diversity of my work which has enabled me to continue doing meaningful work and remain relevant. In addition to leading William Buck and my support of the Rabbitohs, I also sit on the boards of the Bank of Sydney and the Hellenic Club. Through these varied positions I’ve been exposed to some great people and a wealth of new ideas which I can share with the firm.

I relax… By watching sport; especially the mighty Rabbitohs! I have an eclectic taste in music enjoying everything from

traditional Greek music to contemporaryartists like will.i.am and Ed Sheeran. Being interested in what makes people tick, I read a lot of biographies; you can learn a lot from stepping inside someone else’s shoes. I also meditate regularly.

What Praxity means to our firm… It is about a lot more than giving and receiving referrals. It provides an opportunity to share ideas and learn from leaders in their fields, in our case North American firms have been especially forthcoming. The ability for senior leaders to visit and observe how other firms operate on a daily basis cannot be underestimated. It has had a number of positive impacts on our firm including the development of a marketing culture, the evolution of our education process including engaging with the Harvard faculty, and business process re-engineering primarily through IT.

Australian business owners can be very entrepreneurial… and although geographically remote, we have a strong economy. To keep growing, business’ often need to expand across borders. Consequently, it’s part of the Australian nature to be optimistic and outward looking. Having the ability to promote our international capabilities is critical to putting us ahead of the competition. It’s important that our clients appreciate that Praxity is an actively collaborative alliance. Partners from different firms form strong relationships and work together on a regular basis, achieving outstanding outcomes for clients.

Networking is… About being interested in people and being prepared to give before you ask to receive.

In order to succeed in the global environment… Participants must embrace the collaborative culture of Praxity and learn to ‘control the controllables’. If you believe that you’re entitled to referral opportunities simply because you’re a member of Praxity, then you are headed for disappointment. You can’t control when or how someone might choose to refer a client to you. On the other hand, if you see your fellow member firms as an extension of your capabilities and use the Alliance to service your clients across borders, then there’s every chance another member firm will remember you when they have a client that needs assistance in your country.

Five minutes with...

Nikolas Hatzistergos

Earlier this year, William Buck marked the firm’s 120th birthday with a memorable black tie dinner. Hosted in Melbourne where the firm was founded, it was a touching event for all attendees, especially the grandchildren and great-grandchildren of founder William Buck, who marked the occasion with the firm’s 160 Directors and Managers.

As National Chairman, Nick Hatzistergos highlights in his 5 minutes interview, William was a very capable and resourceful man. In the lead up to the event, Nick spent considerable time tracing William’s rich history which showed his family members how alive his memory is today and the similarities in culture a century on. “This was a man who would spend the day tending to his clients’ needs and the evenings teaching aspiring accountants.” William remained a Principal with the firm until 1947.

His son Bill joined in 1925 and took the helm shortly after. Like his father, Bill believed life was for living. Under the sound leadership of Bill Buck, the firm continued to make a difference to individuals and mid-market businesses throughout the 50s, 60s and early 70s. And with his passion for helping people, Bill remained a consultant and then a friend of the firm until his death in 1980.

Lots happened in between, riding out economic challenges and periods of transition, steadily creating a national firm with international reach. Nick comments: “Today’s William Buck has the same pulse of vision, energy and drive and a focus on changing lives through quality advice and excellent service.”

Still changing lives … 120 years on!

The Buck family with guest Master of Ceremonies Ray Martin(L-R: John Price, Lucy Hase, Janet Hase, Robyn Bryrne, MarkHase, Ray Martin, David Pavlich, Judith Price)

To view an extract of Nick’s welcome address, please visit www.williambuck.com/About-Us/Celebrating-120-years-of-Changing-Lives

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WeiserMazars gives back ‘in time’

A 448-strong volunteer corps from WeiserMazars brought smiles and joy to hundreds of people in need and the dedicated organizations serving them during the firm’s first Days of Service initiative. Each individual dedicated a day at one of 32 community and non-profit programs. Pictured are just two of the varied activities, including assisting young children with disabilities at the AHRC Special Olympics on Long Island (image 1) and helping organize the St. Vincent de Paul Food Pantry in Chicago (image 2). www.weisermazars.com

Bowled over!

Emma Logan from Springfords is not just great with numbers, she’s a rising star in Scotland’s bowling world. In addition to winning 17 indoor bowling U25 caps for Scotland, last year she represented East Lothian in the U25 singles, pairs, triples and fours, winning the Scottish triples. Cheered on by her colleagues she also reached the semis in the 2014 British Isles Championships playing for Scotland.www.springfords.com

$18,470 and counting for earthquake appeal

Following April’s devastating earthquake in Nepal, Dixon Hughes Goodman employees and partners, with the DHG Foundation, rallied together collecting more than $18,470 for the Red Cross. President of the DHG Foundation Tricia Wilson said: “As always it has been inspiring to see our DHG family come together and fully exhibit our team spirit for serving communities both near and far.”www.dhgllp.com

Fruity Friday meets Tuna Tuesday

For the fourth consecutive year the workforce at DHG has been shedding pounds, donating 270,875 pounds of food stuff in its 11-day Count the Cans campaign. This year 59,055 cans of fruit were collected firm-wide on Fruity Friday and 33,527 cans of tuna were collected on Tuna Tuesday. Teams also ‘Stuck a Fork in Hunger’ donating more than 1,400 hours service hours packing food, cooking and serving meals. Pictured, the Richmond team at FeedMore.www.dhgllp.com

Praxity team laces up for British 10k

Despite the many protests from Praxity’s Executive Director Graeme Gordon that he ‘hates running’ in his July blog, he, along with 10 colleagues and extended Praxitarian affiliates successfully completed the British 10k London on 12 July. Maintaining an admirable pace through the streets of Piccadilly, Regent Street, Whitehall and along the Thames Embankment, the team raised over £900 for a range of charities close to their hearts, including Help for Heroes, Breast Cancer Care, Cool Earth and Macmillan. www.praxity.com

Boston firm brightens up Corporate Challenge charity run

A 20-strong team of luminously dressed runners from Feeley & Driscoll once again took part in the J.P. Morgan Corporate Challenge on 11 June.Charitable giving is an important component of the J.P. Morgan Corporate Challenge Series, with J.P. Morgan making locally-designated donations at each event. Approximately $2M total has been donated to not-for-profit organizations in Corporate Challenge markets over the past three Series years.This year, the Boston area beneficiary was Catholic Schools Foundation.www.fdcpa.com

GALLERY

22 HUB 2015 ISSUE #3 HUB 23

gives

Join the friendly competition between offices and regions by contributing canned goods, cash or service hours to a local food bank in your community. More information to follow.

1 Can = 1 Point | $1 = 1 Point | 1 Hour of Service (Weekday) = 25 Points | 1 Hour of Service (Weekend) = 50 Points

June 5-15, 2015

Count the CansFood Drive

Stick A ForkIn Hunger

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