I’m reposting this article from Rzeczpospolita as public interest citing fair use under the US legal system, this being a .com site held on a US server, and in a few days when I have time I’ll do a summary of this interesting article with the head of the Polish IFAC member KIBR in English, the very personable Mr Adam Kęsik.
You may have received e-mail (especially from Chinese and Hong Kong companies relating to .cn domains bearing your name if you didn’t register in China, but now more commonly in East Europe also) which says that if you use these people’s services they can prevent your name’s domain in that country from getting blocked.
Now this email gets sent out all over the world to addresses harvested from the internet page and chats and from usenet fora by robots, and of course the people behind the email cannot really afford to block every single domain that they are fishing for. The one sure fire way of making sure that they do block your domain is if you respond to them, whether with threats or with asking for the help, even in terms of “what it would cost”. I suggest you only do this if you don’t want the domain really and have no intention of buying it, as if you are lucky it will lead the scammers into real cash outlay which they’ll never see any return on. I highly encourage that! Maybe some of these pests will stop it if they see that enough internet users are wise to them and don’t mind leading them up a garden path…
You can always search here on EuroDNS (in the interests of transparency that affiliate link earns 10% of anything you buy after you go there, but it shouldn’t cost you more and it’s the service I use myself) and see what the status is of all of your possible combinations of your name and the country endings or generic endings, as well as check the Whois status of all these countries, both Europe and Asia, all in one place. You will probably find that nobody has blocked your domain at all, and if you are interested in owning the domain you can block it there and then. They are ethical and I never had a problem with them that the owner didn’t solve within a week. If they are not contactable one day you can usually get them the next day. Read more…
There’s still time to make tomorrow’s Polish language conference in the Stock Echange builing in Warsaw on the new “Respect” Warsaw Stock Market Index. They’re going to talk about which companies will make up that index and the reporting and governance stringencies that the participating companies will have to adhere to.
See the pdf below for more details about it. I’ll just repeat that the conference is apparently just in Polish – they didn’t make mention of any translation facilities, but I know that a lot of my readers are bilingual and if not please pass it on to a Polish speaking colleague who should find out about this.
(See attached file: Program konferencji RESPECT_25stycznia2011.pdf)
Szef Zespołu Marketingu/Marketing Manager
Biuro Komunikacji Marketingowej/Marketing Communication Office
- Lithuania and Poland: Bad blood (economist.com)
- Sexy Bikini Clad Polish Singer Seeks Seat On Warsaw City Council (lezgetreal.com)
- The sushi invasion of Eastern Europe (gadling.com)
- Polish PM says Russia crash report incomplete (reuters.com)
- Common Pronunciation Mistakes of Polish English Language Learners (brighthub.com)
For businesses which have never been audited but which are growing up quickly to meet the audit thresholds in a year or two, you may wish to consider having your first audit done while it is still voluntary to do so, and the results, if less positive than expected, can at least be kept private.
Once your business has exceeded the audit thresholds (very typically in Europe this means for a private company about 50 employees, 5 million Euros turnover and 2.5 million Euros of gross assets, and it means 2 out of those three conditions – we just stated actually the Polish ones verbatim, (with the proviso that they also state a set PLN amount to avoid subjectivity for businesses that are on the cusp), but most countries are not far off that – even the Czech Republic which really needs much smaller thresholds)
Clearly this doesn’t apply at all to public limited companies, ie. the “S.A.”, “a.s.”, UK plc or German AG style companies which must be audited regardless of size – in some jurisdictions even if they are dormant – but for private limited liability companies most jurisdictions have size criteria like the ones just given – for Slovakia about 60% of the sizes given, so please note that this is divergent from the Czech ones, which are far too high for that country and result in proportionally fewer audits, which is a bad thing for corporate governance in that country.
While you are under the limits audit is voluntary. And you can have an unofficial audit whereby the audit comes and does for you all the normal work he would do if officially appointed, but it is only pro-forma. “Pro-forma” is Latin for something like the idea of “as if” so the auditor will work and report as if they had been properly appointed, but it is really a dry run for you. You do not appoint them as statutory auditors in the minuted general meeting, you do not have to file the report as the audit was voluntary, and you get all the benefit of the audit without the risk, and on top of all of that, I can get you these pro-forma audits for only 75% of the cost of a statutory audit, because the Firms we associate with want to promote good voluntary governance practice in the economy.
If you wait for your first audit until it is an obligatory one because you’ve outgrown the size criteria – and as we come out of the recession that will happen to some of you next year hopefully sooner than you dare hope for now – then if the auditor finds something wrong then the report of the auditor could be “modified” – I’ll do a separate article on what sorts of “modifications” exist and what they mean in accountancy speak, but it’s not good if you get one.
It will not help if you need a loan, and it will probably trigger a lot of interest on the part of the tax inspector. But you’ll have to publish it anyway, if there isn’t time to do the remedial work a good auditor should outline to you in time for your statutory deadline.
Now auditors get cajoled, encouraged in a friendly way or even outright threatened by desparate managers and owners to overlook things or change to an opinion that doesn’t match the facts, and there is nothing that can be done in those circumstances. Auditors are not generally anywhere near as afraid of their client as they are of their regulator, but more than that we are educated throughout our professional lives to be independent in our outlook, and so the only way to get out of some modified opinions is to do the remedial work the auditor recommends or make the adjustments that they recommend.
There’s no point in changing to another auditor you think will be more pliable – they must write to the old auditor and ask if there are any reasons why they cannot act. The best thing to do, if you are not sure how well your company will stand up to an audit is to have your first one a year or so before you need to. Then if the audit shows up a lot to be desired, you have a whole year to put it right and nobody will ever know because auditors are bound by confidentiality – it isn’t us who even publish our reports, it’s the responsibility of the client. The report is given to its addressee, which is always the shareholder, and some other corporate governance boards if they are in existence.
So it’s well worth thinking about, especially if your business has been growing fast and maybe has outgrown its systems.
Let us know if we can help.
- Financial Services Authority to share audit data with Financial Reporting Council (telegraph.co.uk)
- Audit questions state park efficiency ()
- State auditor finds thousands lost to incompetence (sfgate.com)
- Regulator fears small auditors over-reaching their ability (accountancyage.com)
Our friends at BT Klitou have sent the following information about the emergency tax avoidance measures being applied in Romania. If you do business in Romania as part of a multinational group or business, the chances are that you could be seriously affected by the matter outlined below, and if you need more information the contact details to George Sinca are given.
Dear Quoracy.com readers,
The purpose of the email is to remind you about a new compliance request that has to be fulfilled in Romania for the taxpayers registered in Romania performing intra-community operations.
Emergency Ordinance no. 54/2010 regarding some measures against tax evasion.
- Starting with 1 August 2010 the Intra-community Operators Registry was introduced by the tax authorities.
· In this registry, will have to register themselves, all the taxable entities (from a VAT perspective), and non-taxable legal entities which will perform intra-community transactions (i.e. supply of services/goods, acquisition of services/goods);
- The taxpayers who are not registered in the Intra-community Operators Registry, irrespective of the fact that are VAT registered cannot perform intra-community operations as the VAT code will not be recognized by VIES.
- The tax authorities have also made publicly available the documentation needed by the companies to register themselves to the registry. Among the needed documents, for the companies that have also individuals as shareholders, the criminal record of those shareholders is mentioned. The criminal records have to be obtained from the Romanian authorities both for the Romanian and foreign shareholders.
What we can do for you
- We can assist you with registering your company as Intra-community Operator by providing you with information about the needed documentation, assisting you in obtaining the criminal record for the shareholders (individuals), filling in the requested forms, and submitting the files to the tax authorities.For further information and additional details please do not hesitate to contact us. Please note that the registration is a service supplied by the Tax Department which will be charged separately from the accounting fees.Kind regards,
52, Splaiul Independentei,
- Passing Through Romania (kopful.com)
- Romania’s high hopes for science (nature.com)
- Street View in Romania (google-latlong.blogspot.com)
- Romanian pair charged with selling baby in France (msnbc.msn.com)
Baker Tilly Czech Republic’s Head of Taxation, Lucia Rablova, sends the following Czech Republic Tax Alert (pdf at the end of the letter):
Please find enclosed the new issue of our Tax Alert which lets you know about major changes in tax legislation and accounting in the Czech Republic over the current month. We trust that it will be valuable for you, helping you stay abreast of hot topics.
If you know someone who you believe would like to receive our alerts and updates, please let us know. It is a free service, building goodwill for us in the community.
The archive of previous editions of our Business & Tax Newsletter and Tax Alert and other free publications can be found on our website on http://www.bakertillyczech.cz/Publications,19,j,1.html
Head of Tax
Registered Tax Adviser
A Baker Tilly Hungária megjelentette legújabb „Business & Tax Newsletter” című kiadványát, mely a fontosabb,
2011. évi adóváltozásokat tekinti át tömören.
Hírlevelünket a csatolt mellékletben találja.
· Társasági adótörvény változásai
· Személyi jövedelemadó változások
· Általános forgalmi adó változások
· Egyéb adók és az adózás rendjének válttozásai
Hírlevelünk Acrobat Reader szoftverrel olvasható, mely ingyenesen letölthetõ a következõ helyről:
Amennyiben hírlevelünket hasznosnak találja, és szeretné, hogy mások is megkapják, vagy a jövőben
nem szertné, hogy hírlevelünket megküldjük Önnek, akkor kérjük, ezt a newsletter
címre küldött e-mail-ben jelezze.
- Adobe Acrobat Shouldn’t Be So Buggy (pcworld.com)
BCC breakfast briefing on Changes to Czech Tax
|Event:||BCC breakfast briefing on Changes to Czech Tax|
|Venue:||Interhotel Voroněž – Congress Centre, Křížkovského 47, Brno|
The briefing will cover the news in tax adminstration act valid from 1st January 2011
Lucia Ráblová, Head of tax, Baker Tilly Czech Republic, s.r.o.
• major changes of new tax administration act effective from 1 January 2011
Eva Kirschnerová, Czech Lawyer, Senior associate, TGC Corporate Lawyers s.r.o.
Termination of an employment relationship:
The briefing willl be held in english.
Please note:Cancellation of confirmed participation can be made no later than Friday, 01 February 2011 at 5.00 p.m. No-shows will be invoiced after the event in full amount. We reserve the right to make changes to the programme due to unforeseen circumstances. By registering, you give your consent to our maintaining and processing your personal data, and using your electronic address for the purpose of disseminating business-related communications by the BCC and its sponsors.