September 2012

No need to pay tax. Just get a private plane…

Published on: 30 Sep 2012

It’s human nature that most people would probably prefer to pay less tax. To be honest though taxes need to be paid as without them the government wouldn’t be able to pay for, for example hospitals, schools, the police, infrastructure such as roads and if you’re in Italy then if taxes weren’t paid there wouldn’t be any private planes, parties and yachts for tax collectors.

Hang on a moment. What did that last sentence say?

“Private planes, parties and yachts”.

Yes, that’s right as earlier this week Italian police arrested Giuseppe Saggese, the head of Tributi Italia (Italy Taxes) and he has been accused of stealing some pretty significant amounts of money.

Tributi Italia is an agency based in Genoa that collects taxes for 400 town councils in Italy and as head of the agency Mr Saggese was no doubt earning a pretty good salary.

Unfortunately for the town councils (and in fact, unfortunately for Mr Saggese now that he’s been arrested) it looks like he was tempted to increase his “remuneration” from the job by some illegal methods.

Together with four colleagues Mr Saggese is accused of arranging for some of the taxes to be paid into the other bank accounts rather than the bank accounts of the town councils. The money was then used to pay for private planes, yachts, expensive cars and extravagant parties.

Even after Mr Saggese no doubt attended some pretty impressive parties on some private yachts this wasn’t enough to satisfy him as he is also alleged to have taken Euro 20 million in cash for his own use.

As I said at the start, it’s probably human nature to prefer to pay less tax and I should imagine that the residents of Genoa in Italy will be especially upset knowing that their taxes were spent on private planes and parties rather than hospitals and schools.

Is this the best or worst resignation letter ever?

Published on: 26 Sep 2012

Here’s an interesting question. If you resign from your job, what should your resignation letter look like?

Should it be simple, brief and straight to the point or should it be sent to the whole office and include various accusations about your boss including a certain, how shall we say it but, adult liaison in a meeting room with a colleague?

Well if your name is Kieran Allen then the second option appears to be the correct answer.

Mr Allen used to work for MEC, one of the leading media agencies in London. Yesterday he resigned and his resignation letter contains some pretty juicy accusations.

Now whilst this isn’t the first resignation letter that contains some juicy accusations it is the first resignation letter with juicy accusations that has gone viral on the Internet and as a result has been seen by millions around the world.

To avoid a knock at the door from some lawyers, I’ll keep the manager’s name anonymous (although if anyone wants to see the full letter then a simple search on the Internet will reveal it!) but Mr Allen claimed that he left MEC after 2 1/2 years of “loyal service” because of the treatment he received from his manager.

Mr Allen claimed he was forced to take time off work due to stress after being overloaded with work by the manager and he claimed the manager made him feel like a complete outsider on his return.

We’ve all been overloaded with work at some stage or other so this is initial claim isn’t that exciting.

The more interesting accusations though were when he claimed in his letter that the manager “regularly made sexist and other bigoted remarks” and “took a female colleague out for a drink on the day he interviewed her, then took her back to the MEC offices that night and had sexual relations with her in the meeting room on the 3rd floor”.

Mr Allen then went on to say that all of these allegations were “common knowledge throughout the team”.

Some people will applaud Mr Allen for his resignation letter whilst others (no doubt including his manager) will say that he should have kept his issues to himself.

Either way there are some serious lessons to be learnt from all of this. For example, it’s probably advisable to make sure you knock on the door of the meeting room on the 3rd floor at MEC before opening it…

Who do the Big 4 want to win the US election?

Published on: 24 Sep 2012

It hardly seems like 4 years ago that President Barak Obama became America’s 44th president but here we are with just a few weeks to go before the next US election takes place.

Whilst there will be plenty of arguments for and against each candidate over the next couple of months I came across an interesting website which summarises the political donations made by companies in America.

The website opensecrets.org was created by the Center for Responsive Politics which tracks money in politics.

After quickly using the search function on the site it was straightforward to identify the amount of money that the Big 4 have donated to the election campaigns for President Obama and his Republican opponent Mitt Romney.

The donations as at the time of writing are:

Donations made to Barack Obama / Mitt Romney by the Big 4:

Deloitte (Obama: $291,056; Romney: $286,110)

Ernst & Young (Obama: $38,350; Romney: $158,925)

KPMG (Obama: $24,498; Romney: $67,250)

PwC (Obama: $55,033; Romney: $266,650)

Total (Obama: $408,937; Romney: $778,935)

I’ll leave it up to you to perform your own analytical review on the above figures and to decide who the Big 4 appear to want to win the next US election and of course it’s probably got nothing to do with Barack Obama’s plan to increase the marginal rate of tax on high earners and Mitt Romney’s proposal to reduce taxes for high earners…

Surely all consultants can do this?

Published on: 18 Sep 2012

So what exactly does a consultant do? A lot of you may know somebody who is a consultant and the chances are that some of you are in fact a consultant yourself.

Now, I’m only guessing here but my feeling is that most of the consultants you know cannot do what Port of Antwerp consultant Gerrit Wellens from Belgium is capable of doing.

It just goes to show that looks can be deceiving as, without being too harsh on the consultancy profession, 48-year-old Mr Wellens has a classic look of a consultant about him. Surprisingly though he didn’t bring his briefcase with him when he appeared on the Belgian TV programme Belgium’s Got Talent.

Instead, as the video below shows he produced something which is probably not seen that often in a consultant’s office.

This stage is all yours Mr Wellens…

Should this former Deloitte accountant become a doctor?

Published on: 10 Sep 2012

One of the key attributes of finance and business people should be ethical behaviour. Note that I say “should be” as not everyone seems to agree with this approach.

Former Deloitte UK employee Nahied Kabir seems to have a slightly different view of what is acceptable in terms of ethical behavior.

Here’s a quick multiple choice question for you to see how ethical you are compared to Mr. Kabir.

Question – You’re struggling a bit with your professional exams and your employer’s policy is that if you don’t pass your exam within 2 attempts you’ll lose your job. Do you:

a) Focus your efforts on passing your exams. Or,

b) Focus your efforts on forging two doctor’s certificate.

Now, in my opinion (and hopefully in your opinion as well!) the correct answer is (b) (a).

Alas for former Deloitte employee Mr. Kabir he chose option (b).

In summary, Mr. Kabir failed an exam twice and at a meeting to discuss terminating his employment contract with Deloitte he produced a forged doctor’s note.

Deloitte let him sit the exam again and he passed this time. He then had a further 3 exams to sit and you guessed it he failed all 3.

At the next meeting to discuss things with Deloitte he claimed that he failed due to the ill health of his mother. He then produced a second forged doctor’s note from another doctor claiming his mother was suffering from ill health.

Proving that as well as being a pretty rubbish accountant he was also pretty bad at forging letters, the forged letter from the second doctor was exactly the same as the forged letter from the first doctor with the exception of only 4 words!

It’s probably no surprise to you that Mr. Kabir is now no longer working with Deloitte and the accounting body he was sitting his exams with (ICAEW) have published their report on the disciplinary action they took against him.

Again, it’s probably no surprise that he was “declared unfit to become a member of ICAEW”.

There’s no news yet whether Mr. Kabir is planning a successful career as a bank note forger…

Would you prefer to read it or watch it?

Published on: 07 Sep 2012

Marie Claire is one of the leading women’s magazines in the world. It was first published 75 years ago in France and now has various editions around the world.

Although I must admit that I haven’t read a copy in detail I’m told by some of the ladies in the office that it’s a good mix of fashion, beauty and health.

Next month’s issue though is going to have something which has never been seen before in a UK women’s magazine.

Now, I’m not talking about a woman’s magazine writing about the latest football results or the new Range Rover car that has just been released. No, instead I’m talking about a pretty innovative advert.

On pages 34 and 35 of next month’s magazine there will be a 45 second video advert. Yes, that’s right – a 45 second video will be embedded into the pages of the magazine so that when the relevant pages are opened the video will start to play.

Very impressive.

The video advert is produced using technology by US company Americhip and will be for a perfume by luxury fashion house Dolce & Gabbana and reportedly will feature two models posing near a coastal scene.

There’s a constant challenge for advertisers to identify eye catching adverts and this video advert embedded within the magazine will certainly be eye catching.

It will also no doubt be very expensive and the cost of including the video advert has not been disclosed. Interestingly the company that will be paying for the advert is Proctor & Gamble as they are the company that produces the perfume under license from Dolce & Gabbana.

Oh and before you all rush out to buy the magazine it’s worth checking that your copy includes the advert as due to cost reasons not all copies will have the advert in it. If you are lucky enough to get hold of a copy with the video in then it will no doubt be a good read or should I say a good watch.

The ExP Group