inpact in scandinavia
DESCRIPTION
International accounting association, INPACT International, focus this issue on Scandinavian membersTRANSCRIPT
Issue#1June 2014www.inpactint.com
INPAC Tin...
Scandinavia
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INPACT SwedenINPACT Sweden was established about 20 years ago and is formed as an association were audit and accounting firms are members. The purpose of the association is to have a simple organisation (a board is elected every year) that takes care of the administration with yearly education and kick-off. Today there are 9 INPACT firms in Sweden and about 140 employees. A kind of quality control system is also in place. This is to ensure that every INPACT member firm in Sweden has the quality that is expected from them. Together we have produced ISQC 1 manual and audit and accounting handbooks, this is to help the member follow the ISA standards. There is a quality control committee in place that monitors the work. Also, three INPACT member firms in Sweden are members of the Swedish Accounting Institute.
Two times a year the member firms meet. In February-March there is a meeting for the partners and at the end of august there is a kick off were all member firms attend with all their employees.
The partners meeting focus on business management but could also be on other education as tax and audit topics. Additionally, there is also a social part to the program which is a lot of fun. This gives all the employees a possibility to learn and to get to know each other. Once a year all the internal quality control people at each member firm meet to exchange experience from the IQ controls, this took place in Stockholm this year.
This year the partners’ meeting took place from 3-5 February in Sollefteå in the northern part of Sweden, and was organized by Mr Per Rydberg and Mr Kristofer Block at Block Revisionsbyra AB. The education focus was entitled, “How to develop the firm” and the social part was whiskey tasting by a local producer, Box Whiskey in Kramfors.
The next kick-off will take place from 28-31 August in Krakow, Poland. The education will focus on new accounting regulations, ethic part with in ISQC 1 and information from INPACT International and after that some social events with different places to visit.
INPACT in...
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INPACT Nordic
The members with in the Nordic part of Europe meets every second year. This started some years ago and has been
successful. This gives the member firms a possibility to know each other in a smaller group. The countries are Denmark, Finland, Iceland, Norway and Sweden and before also the Faroe Island. There is a work that is carried out between the member firms in this area and it is tax (VAT), audit and accounting. In January in 2013 the member firms met in Reykjavik, Iceland, hosted by Sturla Jónsson,Endurskoðun & reikningsskil hf., and had a very good conference over 3 days. At this time each country informed about tax rules that could be useful for the other countries to know about. There was also a visit from the President of INPACT International, Stephen Jacobs. At the end of the conference the delegates had the possibility to see different part of Iceland by joining an organized tour. These meetings are held in English.
At the beginning of 2015, the Nordic members will meet in Finland and hosting firm is Mr Jukka Silva, Aaltonen & Co Ky.
INPACT in...
Lena Fiedler
Many thanks to our guest editor of this Issue of INPACT In... Scandinavia, Lena Fiedler, partner at Varbergs Revisionsbyra AB, Vice President at INPACT International, INPACT Global Board Member and INPACT Audit President
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LATEST NEWS
Björkholms Revision och Redovisningsbyrå AB
Björkholm Audit and Accounting is aimed primarily at small and medium-sized businesses, offering services in auditing, accounting, taxation, management and financial advice. Our employees have a very broad and extensive experience in the areas of competence in which we deliver services. We believe in a close relationship with our customers where we provide expertise and accessibility through a local presence.
Find contact details of Björkholms Revision och Redovisningsbyrå AB below:
Address:Exportgatan 28 Norrköping 602 28
Sweden
Telephone:+46.011.158580
Fax:+46.011.165430
Contact Partner:Mr Stefan Gustafsson
Email:[email protected]
INPACT admits new member firm in Sweden
Recently INPACT International welcomed a new firm in Nor-rköping, Sweden
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LATEST NEWS
Tax rate in Norway reduced
The tax rate applicable for companies has been reduced from 28 % to 27 % effective from January 1, 2014.
For individuals, the basic tax rate has been reduced correspondingly from 28 % to 27 %. This tax rate for individuals is applicable for capital gains and revenues, and as a base for taxation of salary.
In addition to the base tax, individuals also pay Social Security Contribution and a progressive surtax on high income.
The employees Social Security Contribution have been increased from 7.8 % to 8.2 %, partly offsetting the effect of the tax reduction on wages and salaries.
The marginal tax rate on salaries and wages for individuals in Norway is now 47.2 %, down from 47.8 %.
Political indications give us reason to believe that the tax rate will be further reduced in the future.
Rolf Arentz-Hansen
Inheritance tax finally abolished in Norway
Norwegian citizens have until now paid up to 15 % in inheritance duty. As from January 1, 2014 (based on date of death), there is no inheritance duty.
For most people this reduces total taxes.
However, previously the “acquisition” cost used for tax purposes at a later sale or disposal of the asset was increased to the value at the date of inheritance. Therefore, at a later sale where a taxable gain occurs, the successor was taxed only for the part of gain under her/his ownership.
Under the new rules, the tax basis is not increased. The result is that the successor is taxed on the gain, not only under her/his ownership, but also for any untaxed unrealized gains during the diseased person’s ownership.
New rules relating to maximum dividends in Norway
The mathematical calculation of maximum dividends has been changed, effective from July 1, 2013. For most companies, the result is a higher theoretical maximum dividend. However, the “soft rules” relating to good business practice have been tightened, introducing requirements for adequate liquidity / cash flows in addition to the previous rules for adequate equity.
The change in the rules for maximum dividends increases the responsibility for the Board of Directors when proposing dividend payments for the General Shareholders’ meeting.
Rolf Arentz-HansenPartner at Beckman Lundevall Revisjon ASNorway, Oslo
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LATESTNEWS
JonFritzbøger
Deficit Limits of joint taxation level
The rules restricting the companies offsetting prior years’ losses against taxable income, effect the calculation of taxable income for the income year commencing 1 July 2012 or later.
The jointly taxed companies is the limitation on the joint taxation level so that companies involved in a joint taxation, have one common threshold of 7.5 million DKK, while the remaining deficit can at most reduce the remaining taxable income by 60 %. Losses that can not be offset will continue to be carried forward indefinitely. If the joint taxation income is less than 7.5 million DKK, there is no restriction in deficit application. Please notify that special rules apply if the company uses the Tax Assessment Act to disregard the deficit to obtain relief for foreign taxes.
Jon FritzbøgerPartner at Gutfelt & Partnere A/SDenmark, Kastrup
Joint taxation in Denmark
Since 2005 the joint taxation rules have changed a number of times, most recently in June 2012, where there was an enforced deficit limit on the joint taxation level and also joint and several liability taxation, which is covered below.
Basically the joint taxation implies that all affiliated Danish companies and permanent establishments and real property owned by foreign affiliates are mandatory taxed jointly. A group can also choose international joint taxation, by which also foreign affiliates are involved in the joint taxation. International joint taxation comprises all group companies - both parent companies and underlying companies.
The joint taxation main effect is that the group will have the economic advantage that losses of the loss-making group companies can be offset against other group companies’ profits. In June 2012, however, certain limitations impose the availability to offset losses of the loss-making group companies against the profits of other group companies.
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LATEST NEWS
Joint and several liability for joint taxation
18 June 2012 was also the day where the rules on joint and several liability for income taxes and withholding taxes, etc. within the joint taxation were introduced. The rules on joint and several liabilities mean that a company in a joint taxation is liable for both income taxaccount tax, underpaid tax, including surcharges and interest, as well as withholding taxes on dividends, interest, royalties and certain capital gains, are subject to limited tax liability. Please note that it is a condition for the liability, that claims are occurred in the joint taxation time.
Limit the liability varies depending on whether the liable company by the income year is wholly or partially owned by other companies in the group:
Example 1)
For the management company and joint taxed companies where all shares in the income year is (directly or indirectly) 100 % owned by one or more group companies shall be jointly and severally liable for the tax, including both wholly owned and not wholly owned companies. The unlimited joint and several liability mean that it is not necessary for the tax authorities to claim the tax liability from the company to which the claim relates.
Example 2)
For companies subject to joint taxation, but during the income year are not (directly or indirectly) 100 % owned by other group companies (“minority companies”) are liability subsidiary and maximized. The liability can only be imputed if there unsuccessfully are tried outlays for the fiscal demands of the companies that are jointly liable. Furthermore, liability is limited to the portion of the claim, which corresponds to the share capital of the liable company owned by other group companies in the joint taxation. It is the ownership of the income year that is crucial.
When a company withdraws from the joint taxation, it discontinues the withdrawing company’s liability to the other jointly taxed companies’ taxes, etc. from the time of withdrawal. The management company and the other companies that remain in the joint taxation shall remain liable for the withdrawing corporate taxes, etc. on the income periods where the leaving company signed in the joint taxation. This applies even if the tax authorities at a later date, change the tax assessment for the divested subsidiary, or if the tax authorities later makes a withholding tax requirements applicable.
A company that withdraws from the joint taxation, but where the same shareholders directly or indirectly controls the withdrawing company shall remain liable before it withdraws from the joint taxation. The liability for income tax, tax on account, outstanding tax and surcharges and interest on tax year applies to income years commencing 1 July 2012 or later. Liability for withholding tax applies to tax payments due and payable on 1 July 2012 or later.
There is not yet a published practice on either the rules of the deficit limit of joint taxation level or rules on joint and several liability of joint taxation.Furthermore the corporation tax will decrease in 2014 to 24,5 % and in 2015 to 23,5 % and in 2016 to 22 %.
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MEMBER DIRECTORY
Company Name: Gutfelt & Partnere A/SAddress: Tommerupvej 75, DK-2770 KastrupContact Partner: Mr. Jon FritzbøgerTelephone: +45.32.52.23.53Email: [email protected]: www.gutfelt-partnere.dk
Company Name: Aaltonen & Co kyAddress: Fredrikinkatu 61 A, 00100 HelsinkiContact Partner: Mr. Jukka SilvoTelephone: +358.975992020Email: [email protected]: www.aaltonenco.fi
Company Name: Arnes Revisjon, ASAddress: Rådhusgata 1 C, Postboks 56, N - 2151 ArnesContact Partner: Mr. Dag TornbyTelephone: +47.63.91.28.50Email: [email protected]: www.arnes-revisjon.no
Company Name: Beckman Lundevall Revisjon, ASAddress: Box 199 Manglerud, 0612 OsloContact Partner: Mr. Oyvind SolbergTelephone: +47.22.78.28.00Email: [email protected]: www.blrevisjon.no
Company Name: Endurskodun og reikningsskil ehf.Address: Stangarhylur 5, 110 ReykjavikContact Partner: Mr. Sturla JonssonTelephone: +354.567.4110Email: [email protected]: www.endurskodun.is
Company Name: Bn Revision & RedovisningAddress: Radiatorvägen 11, Örebro 702 27Contact Partner: Ms. Susanne QvarnströmTelephone: +46.19.26.96.20Email: [email protected]: www.bn-revision.se
Company Name: Audit Control OyAddress: Kauppiaskatu 5 A, 20100 TurkuContact Partner: Mr. Jaakko GavertTelephone: +358 500 515151Email: [email protected]: www.auditco.fi
Company Name: Wennberg & Blenna AB RevisorsnatetAddress: Box 1147, SE-824 13 HudiksvallContact Partner: Mr. Mats BlennaTelephone: +46.650.54.24.40Email: [email protected]: www.wb-revision.se
Company Name: RevisjonfirmaetAddress: Kirkegata 10, Postboks 136,3201 SandefjordContact Partner: Mr. Yngvar HemTelephone: +47.33.42.68.00Email: [email protected]: www.hlo.no
Company Name: Sandberg Revisjon, ASAddress: Stangeveien 34, Postboks 4173, 2307 HamarContact Partner: Mr. Erling SandbergTelephone: +47.62.55.52.00Email: [email protected]: www.sandberg-revisjon.no
DENMARK
SWEDEN
FINLAND
NORWAY
ICELAND
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MEMBER DIRECTORY
Company Name: bn Revision Förvaltning ABAddress: Radiatorvagen 11, 702 27 OrebroContact Partner: Mr. Borje NordstromTelephone: +46.19.26.96.20Email: [email protected]: www.bn-revision.se
Company Name: Björkholms Revision och Redo-visningsbyrå ABAddress: Exportgatan 28, Norrköping 602 28Contact Partner: Mr Stefan Gustafsson Telephone: +46.011.158580Email: [email protected]
Company Name: DUO Revision ABAddress: Sturegatan 1, Box 2105, 750 02 UppsalaContact Partner: Mr. Leif DahlTelephone: +46.18.56.62.60Email: [email protected]: www.duorevision.se
Company Name: Ingrid Lindh Revisionsbyra AB RevisorsnatetAddress: Regementsgatan 2, SE-831 41 Oster-sundContact Partner: Ms. Ingrid LindhTelephone: +46.630.13.46.10Email: [email protected]: www.ingridlindh.se
Company Name: Rydberg Revisionsbyra AB RevisorsnatetAddress: Ringvagen 10, SE-827 30 KramforsContact Partner: Mr. Per RydbergTelephone: +46.612.71.64.40Email: [email protected]: www.rydberg.se
Company Name: Sundrev Revisionsbyra AB RevisorsnatetAddress: Esplanaden 11, SE-852 31 SundsvallContact Partner: Ms. Kerstin WestinTelephone: +46.60.12.66.40Email: [email protected]: www.sundrev.se
Company Name: Celinder Revision ABAddress: Storgatan 33, 3331 31 VarnamoContact Partner: Mr. Ulf HalvarsonTelephone: +46.370.69.55.90Email: [email protected]: www.celinderrevision.se
Company Name: Fridhs Revisionsbyrå Ak-tiebolagAddress: Skarevagen 60, 653 50 KarlstadContact Partner: Mr. Tomas FridhTelephone: +46.54.53.40.40Email: [email protected]: www.fridhsrevision.se
Company Name: Resursgruppen Ekonomi & Revision ABAddress: Lilla torg 4, 211 34 MalmoContact Partner: Mr. Bengt R. AnderssonTelephone: +46.40.664.24.40Email: [email protected]: www.resursgruppen.nu
Company Name: Sonora Revision ABAddress: Fiskargatan 8, 5 tr, 116 20 StockholmContact Partner: Mr. Michael ChristenssonTelephone: +46.8.556.963.50Email: [email protected]: www.sonora.se
Company Name: Varbergs Revisionsbyra ABAddress: Box 179 Monarkvägen 3, 432 24 VarbergContact Partner: Ms. Lena FiedlerTelephone: +46.340.641.000Email: [email protected]: www.revisionsbyran.se
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INPACT membership allows Swedish accountingfirm to extend its services to the global marketplace
For the owners of an inde-pendent, local professional firm, it is extremely disheart-ening when a growing client leaves for a larger firm. It can be equally distressing when market pressures result in the firm having to merge and in the process lose both its identity and control over its own destiny.
Fortunately there is a solution for independent accounting firms that ensures both of these scenarios can usually be avoided and an outcome achieved that adds tangible value to the firm and the
business of its clients: mem-bership of an international association of independent accounting firms such as INPACT.
A real alternative for me-dium sized accounting firms
The experiences of Swedish accounting firm Varbergs Revisionsbyrå AB, a medium sized, full service firm with 20 employees and annual revenues of approximately Euros 2.1 million, demonstrate the real alternative offered to medium sized accountancy practices by membership of a strong global alliance of inde-pendent accounting firms.
“We built our firm name and reputation in the market over many years, and while we
didn’t want to jeopardise these strengths in any way, we needed to raise the level of services we offered to those clients who require accounting related services in different countries,” says Lena Fiedler, a partner at Varbergs Revi-sionsbyrå AB.
Regular interaction with member firms worldwide
“When we decided to join INPACT 20 years ago, we couldn’t have imagined that our firm would become so international. We have worked with our INPACT colleagues all over the world, with substan-tial client business, mostly audit work, but also tax and payroll related, being sent from and to the firm on a regu-lar basis. Our slogan ‘Small enough to know you, large enough to serve you’ really
case study
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CASESTUDY
encapsulates how we have been able to remain true to our founding principles, yet evolve through our INPACT member-ship to serve clients of all sizes all over the world.”
Visibility is key to estab-lishing strong relation-ships across the alliance
However, all relationships need time and energy, and INPACT membership is no different. Lena attributes the firm’s success as a member to their regular participation in the alliance’s regional and interna-tional conferences during which they have been able to meet and get to know personally their INPACT counterparts in different countries.
“When you join an association, unless you attend meetings it is difficult for other members to really know you and have the confidence to refer you to their clients. Ours is a people business and trust is hugely important.”Confidence in INPACT counterparts impresses clients
Lena adds: “If I am in a meeting and I can for instance, say
to my client: ‘Let me call my INPACT colleague Steve in London who will know the answer,’ that never fails to im-press a client who can see that he or she will be treated with the same level of service that they expect to receive from our firm by someone who knows us personally.”
High standards world-wide
It’s also the high standard of work provided by INPACT member firms that has im-pressed Lena’s firm: “I have provided audit reports for Big Four firms, and I have to say that there is no difference in the way the reports are prepared. The only difference of course is the lower price.”
Offering the best of both worlds
Most of all, the firm really values their ability to remain a local firm, yet operate as an international player through their INPACT connections: “We are small and large at the same time, local and international. And most importantly, our cli-ents know that they can count on us wherever in the world they need help.”
“When we decided to join INPACT 20 years ago, we couldn’t have imagined that our firm would become so international. We have worked with our INPACT colleagues all over the world, with substantial client business, mostly audit work, but also tax and payroll related, being sent from and to the firm on a regular basis.”
Lena Fiedler, partner atVarbergs Revisionsbyrå AB
The content of this newsletter is of general interest and should not be regarded or relied upon as professional advice. For information about a specific matter, readers are advised to consult the appropriate professional. INPACT is an association of independent accounting firms.
INPACT International,Tavistock House South, Tavistock Square,
London WC1H 9LG, United KingdomTel:+44 20 7387 4741, Fax: +44 20 7387 4715
E-mail: [email protected]