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Tax Season Comes With Higher Risks

The idea of a suit brings bad taste to everyone’s mouth but it the probability of being in the situation can be higher if you are an accountant that handles taxes compared to other specialties in the field.

According to the managing general underwriter of accountant professional liability insurance, president of Jorgensen & Co. as well as an insurance broker, Rickard Jorgensen, tax claims filed against accountants can be measured by the number of loss in dollars. It makes up about a third of the damages that has been paid. If the tax claims, on the other hand, is measured using frequency then it takes up two-thirds of the entire claims that have been made against accountants.

Furthermore, it can be divided into two parts – the first one-third of the claims is created by individuals while the remaining one-third is caused by returns in partnership or corporation. This only shows that despite that fact that there is a higher number of claims that resulted from tax services, majority of these claims have been settled with only a small amount of money.

In a statement made by the CPA Randy Werner who is a loss prevention executive at Camico, the previous past season showed that there is a continuing trend when it comes to cybersecurity incidents and it remains to be the major reason why there pitfalls in the tax preparation scenario. During the first week of April this year, Camico received eight different complaints from policyholder firms that unfortunately undergone data breaches which are the reason for claims in state and federal returns which are fraudulent in nature.

Jorgensen was in line with the statement Werner made because in the last two years, there is a higher incident of claims that resulted from filing made by criminals in terms of tax returns that are fraud. The evidence is shown by the network or server of the computer being used by a tax preparer unaware of the data breaches and accessing of information regarding client returns for the last few years. Bogus returns are then made out of the information stolen and submitted before the legitimate returns. This is the main reason why it is important for practicing professionals to have accountant professional liability insurance because once the fraudulent returns are paid by the IRS, the only way for them to know of the fraud is when the preparer files their returns later in the year.

New Audit Insurance Rules Aimed At Takeover Deals

Kenya’s audit insurance industry need to concern themselves with acquisitions and mergers regarding the new accounting rules. In this rule, underwriters must disclose where they derive their earnings, cash flows impairment and fraud.

The International Financial Reporting Standard (IFRS) 17 say disclosures under the new guidelines should offer investors new insights about the insurer’s financial health and will simplify the comparison of entities. The ruling will take effect on January 2021.

Globally, there is no common insurance accounting standard, which leads to various handling of investment earnings, premium income, adjusting of risk and future cash flows by underwriters.

Alex Mbai, audit partner of KPMG says, there is a greater comparison that can help in the merger and acquisition activity, promote rivalry for investment capital, and earn the trust of investors. Increased transparency can profit new and in-force business, which should provide users more insights on insurer’s financial health. Audit insurance can help provide the insights.

Few of the emphasis of IFRS 17 is the distinguished presentation of finance and underwriting effects, offering more clearness on an insurance company’s origin for quality of earnings and profits. Additionally, premium volumes are no longer on the top line, with cash received and investment elements no longer origins for income. The new ruling won’t permit day-one profit, where the profit recognized is over the period the insurance contract was offered.

In Kenya alone, there are 51 audit insurance companies with a dozen working for life and non-life, 14 underwriting life insurance, and 25 doing general insurance.

A lobby of actuaries named the Actuarial Society of Kenya (Task), has recommended Nairobi to start adopting IFRS 17 this coming January knowing its complicated nature of the rules given.

Gauri Shah, IFRS team leader at Task says, IFRS 17 will likely be very costly and profound to apply. The new standards may enhance some insurance companies to reckon tactical mergers or other partnership, so cost efficiencies can be improved.

However, Insurance Regulatory Authority has instructed audit insurance companies to apply IFRS early rather than observing its approach.

Godfrey Kiptum, IRA chief executive says, we encourage these firms to acquaint themselves with the IFRS modifications and evaluate its impact for smooth transition.

3 Things To Look For In Courier Companies

Not all things are done electronically. Some services still require manual labour such as those done by courier companies. If you frequently send packages or documents across states or all over the county, it is essential that you choose a courier that will do the service for you regularly. Having reliable courier company eliminates the need for you to go to travel just to deliver the package or gift to your recipient. Doing the delivery by yourself can be time-consuming and expensive. To hire a reliable company, here are some of the things that you should check.

Electronic services and deals

Choose a courier companythat makes serving its customers easier and for the customers to have an easier time while doing business with the company. One of which is to provide online quote tool that will make it easier for the customers to estimate how much they are going to spend for the courier services. Aside from convenient services, look for courier companies that offer discounts and promo deals to allow their customers to save money.

Offers local and international services

If you would second packages and documents across the globe, it is only right to look for a courier company that has wide service coverage or at least, has affiliates in other countries in order to serve you. Before coordinating with the company to do service with them, visit their website to determine the areas or country that they cover. Find out if the courier company offers low cost international services and if it is competitive in comparison to the rates collected by other companies.

Guaranteed fast and secure transactions

Choose one of those courier companies that is trusted in the industry. Read reviews and testimonials to find out if there are complaints against the company such as missing or damage parcels or reports on delayed deliveries. A courier company should be true to their guaranteed time of delivery which is 24 hours or next-day delivery for local parcels while the estimated time of delivery for international shipping is 1-5 days.

Tourists Continue To Flock To Thailand And More Expected To Arrive

 

All expectations were exceeded when Thailand recorded 32.59 million tourists in 2016. According to officials revenue grew by 10% and more in excess of all predictions. The Tourism Authority of Thailand also said that the tourism industry earned 2.52 trillion baht ($71.4 billion) in 2016 up by 11% from the previous year.

Thailand remained popular to global tourists in spite of terror scares resulting from a series of bombings in popular resort towns. Tourists continued to visit the Southeast nation that is grieving over the death of King Bhumibol Adulyadej. Hotels and tour guides all over the country were on edge but still tourism fared better than expected.

The tourism industry of Thailand is expected to bring in 733 billion baht ($20.8 billion) for the first quarter of 2017 up by 8% from last year. Officials have estimated that foreign and local tourism combined revenue for whole year of 2017 will likely surpass earlier predictions of 2.77 trillion baht ($78.5 billion).

According to a report from the United Nations, Thailand is the 11th most visited country in the world with the 6th largest revenue in 2015 from tourism. Thailand is very attractive to tourists from China, South Korea and Japan as well as Western countries and neighbouring countries in Southeast Asia because of the warm weather throughout the year. There are lots of things that can be offered to foreign tourists so that they will be able to gain a unique and different experience.

Yuthasak Supasorn, the governor of Thailand’s Tourism Authority says that the boom in the industry is generated from the steady economy and the growing number of visitors from all over the world. If the economy continues to improve and remains stable, there will be more foreign arrivals. Since there is obviously great demand, it is important to be able to accommodate everyone who wishes to visit Thailand.

When you book in advance at Sukhumvit hotels, you will enjoy special discounts and with free Wi-Fi and buffet breakfast. Hotel guests are given special attention to ensure that they gain the best experience. Rooms are modern, luxurious and classy to gain good value for the money paid.

IMF Prediction That The UK Will Have The Fastest Growing G7 Economy

According to the International Monetary Fund (IMF), the United Kingdom will have the fastest growing economy among the G7 leading industrial countries. G7 or Group of Seven is composed of the United States, Canada, France, Germany, Italy, Japan and the UK. The prediction of post Brexit vote financial crash for the UK was proven to be overly pessimistic. Washington-based IMF has stuck to its belief that UK will have a soft landing in 2016 with a growth of 1.8% and expansion next year at 1.1% lower than what was previously expected in the immediate aftermath of the EU referendum results.

According to IMF’s Economic Counselor Maurice Obstfeld, the fund was obviously right when it predicted the risks of Brexit but they are looking at a better outcome with the soft landing in 2016. However, if you will look further ahead, the uncertainly between the UK and EU will make businesses more cautious. It also warned of the fall of sterling which actually hit a 31-year low last Thursday. The pound sank to $1.274, the lowest since June 1985.

In spite of the resilience of the UK economy, there are a lot of challenges ahead particularly with the absence of determined policies to support economic activity for short and long term growth. On the other hand, Philip Hammond, the Chancellor says that there is no room for complacency and everybody has to take action to support the economy through the period of turbulence. Long terms goals of fiscal consolidation and improved productivity must continuously be pursued.

According to the World Economic Outlook (WEO) manufacturing in the UK is bouncing back after falling dramatically last July. Spending in shops has also continued. The Bank of England’s package of measures last August has also boosted confidence and limited any downside risks to the UK’s economy.

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Cambodia’s Solid Performance In Spite Of Minimum Wage Increase

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Following a tripartite congress, the Royal Government of Cambodia decided to increase the minimum wage of workers employed in the garment and footwear industry to $140 per month. Both the ILO (International Labor Organization) Country Office for Thailand, Cambodia and Lao People’s Democratic Republic acknowledged the recent decision.

In the past there were strong fears that the increase in minimum wage might have a negative impact to the garment and footwear industry however, data shows that the industry continues to perform well. Cambodia’s market share in the garments and footwear exports has not faltered; instead it continued to rise. However, this positive experience from the past minimum wage increase does not guarantee that future wage hikes will be accepted favorably.

According to the new edition of Cambodian Garment and Footwear Sector Bulletin that was released by the ILO, the first half of 2015 was very favorable for Cambodia’s garment industry. The ILO Bulletin cited the solid performance of the garments and footwear sector. It also revealed that during the first half of the year, Cambodia’s garment and footwear exports were valued at $3 billion. There was a significant 12.7% growth compared to the same period last year.

As a result of the growth of the garments industry, employment in the sector increased by 42,000 people over the first 6 months of the year. It is reported that total employment among registered factories has reached 607,000 in the middle of 2015.

The International Labor Organization promises continued response to requests for technical assistance to tripartite stakeholders. According to Mauricio Bussi, OIC of the ILO County Office for Thailand, Cambodia and Lao People’s Democratic Republic, the data and analysis from the garments and footwear sector will be issued to the stakeholders so that they will have information on evidence-based social dialogue around wages and other key issues that are critical to the industry.

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