Viewpoint from RT

LEGAL AND ACCOUNTING CONNECT 2018: A CALL TO MARKET – A ONE STOP SOLUTION WITHOUT BORDERS

LEGAL AND ACCOUNTING CONNECT 2018: A CALL TO MARKET – A ONE STOP SOLUTION WITHOUT BORDERS

people standing on stage
speakers

The Legal and Accounting Connect 2018 was held on 29 June 2018 and was co-organised by the Association of Chartered Certified Accountants (ACCA) and the Law Society of Singapore (LSS).

In the report of the working group (under Singapore’s CFE (Committee on the Future Economy)) for the Legal and Accounting Sectors, published in 2017, several areas of growth opportunities were identified. This discovery demands that legal and accounting practices will need to work closer together than ever before to fully grasp the opportunities which lie in the region.

The report was the basis for the event which brought together thought leaders from both legal and accounting fields together for a time of knowledge sharing and networking.

Present at the event were key figures in the industry including Ms Indranee Rajah S.C. – Minister in the Prime Minister's Office and Second Minister for Law, Finance and Education, Mr Gregory Vijayendran – President, The Law Society of Singapore and Mr Chaly Mah - Chairman of Singapore Accountancy Commission.

ravi

Ravi Arumugam

CEO & Managing Partner Executive Chairman RT LLP & RT Group, RT ASEAN

"Clients today face the challenges of a tough business environment and the need to manage businesses that cross geographical borders. As a result, an integrated service that comprises cross-border networks of multidisciplinary service providers would better meet the needs of today’s clients"

RT ASEAN’s Chairman Ravi Arumugam, and managing director Peter Doraisamy from member firm Peter Doraisamy LLC were also present at the event as guest speakers covering the topic of “A Call to Market - A One Stop Solution without Borders”

peter

Peter Doraisamy

Managing Director, Peter Doraisamy LLC

"Legal and accounting practices are facing an increasing need to work together to meet the rising demand for overlapping and cross-border services that Clients today require. One viable and effective solution is to provide Clients one point of contact through an integrated network of Legal and Accounting firms for an array of multidisciplinary services regardless of jurisdiction and location."

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Robotics Process Automation (RPA) and Automation in Finance

Robotics Process Automation (RPA) and Automation in Finance

Robotics Process Automation (RPA) and Automation in Finance

What is Robotic Process Automation?

Software robots that mimic the work of humans across applications non-invasively. RPA are best suited for repetitive, high volume, long running and rules driven work. To give a scale, RPA market size by 2024 is to be $8.75 billion which would be 65% less expensive than the full-time employees (figures courtesy of Grand View Research).

Over the years we have gotten used to terminology of handing over our work to computer in one of these forms: VB Macros, Artificial Intelligence, Screen Scrapping, Bots, Augmented, Unattended desktop, Scripting and so on. So why RPA now?

  • Because “Robotic” sounds great! Who isn’t talking about it?
  • Need more cost savings and quick wins
  • Regulations and compliance
  • Legacy applications are too expensive to automate in time.
  • “APIs” or services architecture doesn’t exist. In case it exists, it is too slow and too expensive to deliver ROI.
  • Why spend time training people to do a job that can be spent on training Robots?

Can Robots now do everything a human can do?

The answer is not yet!

RPA landscape can be categorised as Unattended and Attended RPA. Unattended are focused primarily on back office and have a very niche use cases, whereas, Attended RPA are focused in front and back office and are used more widely across industry. Usage statistics illustrated below:

rpa illustration

Where do I start?

  • Be unambiguous in defining the desired ROI.
  • Use case vs technological variations in RPA.
  • Be practical, RPA is to replace your work not you. Don’t expect robots to do something you wouldn’t expect human to do.
  • Employee combination of attended and unattended RPA together.
  • Think bigger, go beyond small-scale rote automation. Target wider audiences where impact would resonate.

In today’s scenario where digitization is the need of the hour, we need to focus on the most left out process i.e. Finance and Accounting, which is one of the most important pillars of a business organization.

Majority of processes can be automated with capture, workflow and RPA automation solutions available in the market, which helps to reduce the risk of inaccurate results and trust the outcomes in comparison to manual calculations.

What Can I Automate?

  • Onboarding new suppliers/customers, validating and updating their data periodically and invoicing using Invoice portals
  • Robots can sneak into websites and source pricing of products for a comparative analysis of cost between different vendors
  • Reconciling deliveries with purchase orders for validating the shipments and reporting exceptions
  • RPA can help to close subledgers and delivering financial filings to regulatory bodies like systems, departments and individuals
  • Gathering and consolidation of transactions & reconciling in ERP systems
  • Collecting, processing, and delivering the information for analysing financial and operational performance

What Pierian has been able to achieve so far?

  • Creation of Invoices automatically using data extraction from different sources
  • Reduced time effort in creation of monotonous and repetitive presentations
monash

Monish Kumar
Desai Program Manager
Pierian, Pune

Monish is a technologist having completed Masters of Engineering in Human Computer Interaction from University of Queen's, Canada. He started his carrier as a Automated Testing Co-op Engineer at Nortel Networks, Ireland. Since then he has worked across three continents for over 4 years, and currently working as Program Manager at Pune, India with Pierian.

priya

Priya Desai
Senior Financial Analyst
Pierian, Pune

Priya Desai is a qualified Chartered Accountant working as Senior Financial Analyst in Pierian Services. Having 3 years experience of working for Fortune 1000 company in analytics domain.

Analytics and Management Dashboards

Analytical Dashboards display the status of metrics and Key Performance Indicators (KPIs) for an enterprise. Analytical Dashboards consolidate and arrange metrics, figures and overall performance scorecards on a single screen at organizational level to the granular levels.

Analytics-driven approach allows the organisation to do more accurate planning, forecasting, and budgeting. It empowers financial managers with predictive and prescriptive analytics to gain operational visibility, identify underperforming areas, maximize customer value, and effect change at every level of the organization.
Using analytical skills, we have built serval dashboards such as Operational Dashboards, Strategic Dashboards, Tactical Dashboards etc. to enable the management to monitor the progress of different activities across the organisation.

These dashboards are built within separate departments such as sales, manufacturing, finances, operations, services and human resources. All these departments require dashboards so that they can perform their everyday activities efficiently.

These dashboards are used by senior executives, managers to understand, monitor and track the company’s progress.

We at Pierian Services make it easy for everyone, from analysts to executives, executives to managers to analyse, view and understand how crucial facets of the business are performing.

Travel Analytics and Big Data solution hosted on the Cloud for a leading global entity:

These dashboards were developed using Sisense as the visualization and analytical engine. Users access data from the GDS in real-time which is extracted and cleaned, the data changes over period and updates the dashboards as desired by the operational users. Other data sources like industry news feeds and RSS are meshed up to present back a context-based information. This information is used to manage decision in real- time while executing transactions.

Digital Marketing and Sales Forecasting Dashboards:

Customer acquisition analytics and strategies helps the management to optimize their marketing spend. These dashboards were implemented to analyse CRM data to acquire new customer which helped the entity to reduce their marketing spend. Further step was to visualize the forecasting data to enable the managers to understand the forecasting and revenue trend by comparing with the last week and years’ dashboards.

various charts
garima

Garima Jain
Business Analyst
Pierian, Pune

Garima is post graduate from IIIT Bangalore in Data Science. Business Analyst professional having 4+ years of experience in analyzing, visualizing different real time datasets based on business requirements.

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VIETNAM: NEW GUIDANCE ON TRANSFER PRICING

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VIETNAM: NEW GUIDANCE ON TRANSFER PRICING

VIETNAM: NEW GUIDANCE ON TRANSFER PRICING

On 24 February 2017 the Government issued Decree No. 20/2017/ND-CP (Decree 20) regulating tax administration with respect to enterprises having transactions with related parties which take effect from 1 May 2017. Decree 20 creates a new legal framework for related-party transactions

in Vietnam and provides certain changes to the current transfer pricing rules which are governed under Circular No. 66/2010/ TT-BTC of the Ministry of Finance (Circular 66). Decree 20 provides detailed guidance on the determination of arm's length pricing of related party transactions,

tax year
  • The ownership threshold to be considered as related parties is increased to 25% from 20%.
  • Two entities with mutual transactions more than 50% of sales/purchases are no longer treated as related parties.
  • Transfer pricing (“TP”) documentation is more complicated and includes a master dossier on global group information, a local dossier and country-by-country profit report. The documentation must be submitted by the annual tax return deadline (within 90 days after the fiscal year-end).
  • Dossier of identifying related-party transaction prices should be prepared by the deadline of the annual Corporate Income Tax (CIT) finalisation, and provided to the tax office within 15 working days from the date of the tax request.
  • More detailed guidance on benchmarks such as use of data sources, TP method selection, minimum numbers of comparable companies and other adjustment factors is provided.
  • The following entities are exempted from TP documentation:
    • Entities with revenue below VND50Billion and total value of related-party transaction below VND30Billion in a tax period
    • Entities concluding an Advanced Pricing Agreement (APA) and submitting annual APA reports
    • Entities with sales revenue below VND200Billion and achieving at least 5% for distribution, 10% for manufacturing and 15% for processing for ratios of earnings before interest and tax to revenue.
  • Tax payers that only have transactions with domestic related parties, the same tax rate and no entity entitled to tax incentives can be exempt from reporting information about these transactions.
  • Loan interest applicable to both related-party and third-party loans are capped at 20% earnings before interest, tax, depreciation and amortisation (EBITDA).
  • For services between related parties, the tax payer must prove the economic benefit and provide sufficient evidence (supporting documents such as a contract, invoice etc) on calculation method, proportion method and price policy of the group for services provided. The mark-up portion of third-party expenses recharged to Vietnam entities are not deductible for CIT purposes.Decree 20 mainly affects companies with various related party transactions. Interest loans with related parties or with third parties are also under the administration of this decree, when capped at 20% of EBITDA.
tax

Key considerations for investors and companies

Decree 20 emphasizes that the transfer pricing method applied must ensure that there is no loss of tax revenue to the state budget. This implies an asymmetry that may be in consistent with the arm’s length principle. In addition, there is no guidance on how adjustments should be done and the potential impact for other taxes (i.e Value added tax or foreign contractor tax).

Below are the analysis for the compliance risk and the profitability for tax purpose resulting in TP risk for each enterprise and needs investors/ companies’ consideration:

compliance chart

Expected TP Audit program for 2017

In order to enforce the TP audits, Tax Authority will manually select enterprises with below criteria: 1) Key industry players; 2) Enterprises which have persistent losses and are still expanding; 3) Enterprises which have not been audited for a long period; 4) Enterprises with high tax incentives; 5) Enterprises which have had several tax issues or high adjustments during previous audits; 6) Enterprises which have significant related party transactions; and 7) Others.

Therefore, companies in Vietnam shall have its own assessment on above criteria to see how possible they will be fall in the audit list by Tax Authority.

What Should Companies Do

  1. Run a comprehensive risk assessment and readiness analysis for the regulatory change: Master File, Local File, Country by Country report
  2. Ensure the proper TP filling and documentation for FY2017 and prior years
  3. Consider an APA as an alternative to transfer pricing reporting compliance requirements under the new Decree
  4. Undertake a review of the corporate structure and potential risks, specially when conducting transactions with preferential tax regimes and reduce the risk of double taxation
  5. Intercompany agreements will be reviewed in the event of a tax audit and form part of the suite of transfer pricing documentation. Companies should ensure that absent or insufficient intercompany agreements do not adversely impact intended tax position
meeting

Takeaway points

Decree 20 represents the most important development with respect to Vietnam’s transfer pricing regime in the last 10 years. However, it is a challenge for enterprises to comply and tax payers should take immediate action to assess the impact not only on local tax compliance, but also on the business, considering that Decree 20 has potential implications beyond transfer pricing.

uat

Khuat Lien Huong
Consulting Director
ASTC Vietnam

Huong is Consulting Director of ASTC from 2017. She has more than 10 years in assurance and consulting services and she is both CPA Australia member and FCCA member. She has a lot experience in wide range manufacturing and real
estates clients in Vietnam, Laos and Cambodia.

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Shanghai Victor Voyage

Shanghai Victor Voyage

Our Beginnings

Our firm was formed in 2006, which was set up by Certified Public Accountants (CPA), Certified Tax agent and MBA. We started out with a headcount of 3 in 2006 and have since increased to over 50. The number of CPA increased from 2 to 11. Our clients include local Chinese Companies, MNCs and Small and Medium Sized enterprises. We not only provide Statutory audit and special audit, but also one-stop seamless services including company formation, Accounting and taxation, payroll i.e. compliance services, Virtual CFO, and tax advisory.

Embracing Technology

In 2016, a new Cloud Accounting Software was implemented to improve the value of accounting service and reduce the cost. The new Cloud Accounting Software is used to develop our Virtual CFO and tax advisory service through Cloud technology.

Our key services can be divided into two sections:

  • Business and taxation compliance
  • Business consulting
  • Attending to compliance with Australian and international taxation laws
  • Due Diligence
  • Asset Protection and Structure
  • Superannuation Fund compliance
  • Management Accounting
  • Information Systems reviews, advice and implementation
  • Cash flow and finance management
  • Bookkeeping Services

Using the Cloud Accounting software, our services are faster, more reliable and value adding, improving the efficiency of our services by 40%. We are always working on different ways to increase the value-addition of accounting service, reduce the percentage of bookkeeping processes and increase the percentage of management accounting through technology.

Part of RT ASEAN

Introduced by IE Singapore, we are honored to be one of the founding members of RT ASEAN. Through this platform, we will like to grow our firm, our staff, and introduce more Chinese company overseas. Through RT ASEAN we have seen more Chinese companies going out to the markets overseas as well as other APAC companies entering China. We look forward to scaling greater heights with RT ASEAN.

vid

David Yu
Partner
Shanghai Victor Voyage CPA firm
David is the partner of the firm.

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Deloitte Technology Fast50 India 2017

Deloitte Technology Fast50 India 2017

Pierian Digital recognized among the 50 fastest growing technology companies in India

Pierian Digital was recently ranked among the Fastest Growing Technology Companies in India on the Deloitte Technology Fast50 India 2017.

Pierian Digital’s leader and promoter, Srihari Vedante, credits People, Information and Automation as an overall theme which has catapulted the company’s revenue growth over the past year. He said, “2017 has set the foundation for greater things in 2018 and getting recognised for our efforts is a humbling experience.”

"Making the Deloitte Technology Fast50 is commendable in today’s highly competitive technology industry," said Rajiv Sundar, Partner, Deloitte India. "We congratulate Pierian Digital on being one of the 50 fastest growing technology companies in the region."

srihari

Srihari Vedante
Leader and Promoter
Pierian Digital

Srihari is a serial entrepreneur, CIO advisor and Digital evangelist, having successfully built IT services companies

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A Dynamic Firm Punching Above Its Weight

Introduction

Peter Doraisamy LLC was formed in 2017 and offers a comprehensive range of legal services to its clients. This ranges from basic legal advice to complex litigation. Whatever the nature of the brief, the objective of the firm is to deliver personalised and approachable partner-level service in an efficient and cost-effective manner.

As an independent and conflict-free law firm, we are often briefed to take on matters against major institutions and corporations. By virtue of our independence and expertise, foreign law firms and other local law firms look to us to act as Singapore counsel. The leanness of the firm belies its in-depth expertise, sophistication and agility in providing exceptional legal services comparable to its larger contemporaries.

Our regional network (including RT Asean) encompasses firms in the growing economies of Indonesia, Vietnam, Myanmar, Thailand and the Philippines, enabling us to provide our clients with access to worldwide resources.

Peter Doraisamy is the founding partner and Managing Director of Peter Doraisamy LLC. The firm’s Senior Director is Andrew Lee. Both of them are supported by a strong and dedicated team of professionals comprising Associates, Paralegals and Administrative Staff.

Firm’s Expertise

Marine

Our maritime practice is one of the firm’s key practice areas. Our lawyers are experienced in the full range of shipping and admiralty work, having acted for clients in highly contentious matters as well as complex transactional and advisory work.

We pride ourselves in assisting our clients efficiently with precise and comprehensive advice. Recognising the global nature of the shipping industry, we have a wide network with foreign law firms in major ports to support our clients’ needs.

Our domestic and international clients include vessel owners, charterers, P&I Clubs, H&M underwriters, brokers, suppliers, ship agents, ship managers and cargo interests.

Energy & Resources

We offer full-scale services in respect of energy and water matters across local and international markets in association with Hugh Fraser International. These include the oil and gas, liquefied natural gas, alternative energy, water and electric industries.

International Trade

With our experience in acting for local and international financial institutions, listed companies and commodity houses, we have an established international trade and finance practice. Our understanding of the industry ensures that we are able to deliver practical business solutions for our clients.

Litigation

Litigation remains one of the firm’s core practice areas in which we have in-depth expertise. Having litigated at all levels of the Singapore Courts, including the recently established Singapore International Commercial Court (SICC), our lawyers are experienced in a broad spectrum of contentious matters. In 2017, Peter and Andrew acted for the subsidiary of a Singapore Exchange Listed company and obtained judgment for USD27 million in one of the first reported and publicised SICC cases.

We have successfully represented local and foreign listed companies, MNCs, SMEs and private individuals. Our results-driven approach has earned our clients’ trust and confidence in delivering commercially practical solutions.

Arbitration

We have an established alternative dispute resolution practice. Having worked on complex cases, our lawyers are well-equipped to handle both domestic and international arbitration work.
Our lawyers are also experienced in mediation, adjudication and expert determination matters.

Private Client Disputes & Advisory

Our lawyers have gained a good reputation acting in cases involving mental capacity issues. In particular, our lawyers were involved in a case spanning almost three years acting for the litigation representative of an elderly woman suffering from dementia with an estate worth over S$40 million against an unscrupulous ex-tour guide from China. This case gained widespread local media attention and is heavily cited in local articles, publications and even parliamentary debates discussing issues related to mental capacity and elderly abuse in Singapore.

Our lawyers have also acted in estate disputes involving significant assets in multiple cross-border jurisdictions and contentious family matters. We regularly advise high net-worth individuals on estate, trust and succession planning matters involving cross-border assets.

Business Fundamentals

Our corporate practice provides our clients with comprehensive services as we regularly advise on the setting up businesses in Singapore and general corporate and commercial transactions. Our lawyers are well equipped and experienced to advise on structuring, negotiation and documentation required for our clients.

For more information about our firm and expertise, please visit our website at http://www.pdlegal.com.sg/ and/or http://www.pdlegal-maritime.com.sg/.

 

peterPeter Doraisamy
Managing Director
Peter Doraisamy LLC

Peter Doraisamy is the founding partner and Managing Director of Peter Doraisamy LLC. Peter has, over 18 years of practice experience as counsel, developed proficiency in the conduct of complex cases covering an eclectic mix of practice areas. Peter has litigated at all levels of the Singapore Courts including the Singapore International Commercial Court. He is regarded by clients as a practitioner with excellent commercial acumen, able to find favourable outcomes in difficult cases.

Formerly Head of Disputes at the Singapore office of a US-based international law firm, Peter founded the firm in 2017 to continue pursuing his passion for the practice of law and to make a difference in his clients’ lives.