Diversity champion leaves…

If you are the diversity champion of an organisation with approximately 20,000 employees it’s probably best if you’re not bullying staff.

Deloitte’s (now ex) deputy chief executive and diversity champion Dimple Agarwal has resigned from her role after allegations of bullying by her were received from several staff members.

The British newspaper, the Telegraph first reported Ms Agarwal was facing multiple complaints from staff over inappropriate working practices.

Distressed staff alleged she was aggressive towards them on calls and in emails as well as demanding they work long hours including joining calls before dawn and late at night.

Before her resignation, Ms Agarwal had said that the physical and mental wellbeing of the firm’s employees during lockdown is a priority for Deloitte.

Deloitte UK boss Richard Houston reportedly said “I cannot comment on any of the allegations contained in the article. But, as I have consistently made clear, I’m absolutely committed to ensuring that everyone in our firm is treated with respect, and I will not tolerate behaviours or actions that are inconsistent with our global shared values.”

Ms Agarwal isn’t the only senior executive from the Big 4 to leave due to some awkward behaviour.

Last month, the UK chair of KPMG resigned from his role after telling staff to “stop moaning” about their working conditions during the pandemic and claiming unconscious bias was “complete crap”.

Enjoy the freeze…

Working from home has become a fact of life for a lot of people due to the Covid-19 pandemic. Synonymous with working from home are the video conferencing facilities such as Zoom, Google Meet and Microsoft Teams.

The growth in use of these technologies has been phenomenal. Back in December 2019 for example there were on average 10 million daily meeting participants on zoom. Fast forward to 2021 and the daily averages are around 300 million.

The technologies have been incredibly useful for keeping teams together and maintaining working practices but with back-to-back zoom meetings sometimes going on for hours some people are suffering from “zoom fatigue”.

There’s also the issue of what happens if you are desperate for a cup of coffee or a call of nature during a particularly long and boring meeting?

It’s pretty obvious on the screen if you try and sneak out for a couple of minutes and taking your laptop with you to the kitchen or toilet is best avoided.

Enter the recently released freezingcam.com which as the name suggests enables you to simply click a button on screen and your webcam will freeze and give the impression that you are having internet connection issues.

After quickly popping out of the room to do whatever you wanted to do, you can get back to your desk, click the unfreeze button and lo and behold you are back at the meeting and everyone thinks you were having internet issues rather than looking for those chocolate digestive biscuits in the kitchen…

I’m not kicking a ball, I’m being looked at.

Professional footballers must have a great life. Playing football and earning significant amounts of money. Oh, and using some very clever tax advisers…

There are serious amounts of money being paid to some of the top footballers. Payments of in excess of £200,000 per week are fairly common (over £10 million per year).

This income doesn’t simply go into the tax return as salary. No, there are far more sneaky/clever [delete as you feel appropriate] ways of minimising the tax liability (or should I say maximising the after-tax income).

One of the methods used to minimise the tax is to make two types of payments to the player.

One would be for playing football whilst the other would be for “image rights”.

“What are image rights?” I hear you say.

Well, the basic idea is that the player would agree to let the football club use his image in any sponsorship or TV deals that the club has.

Without going into too much technical detail, the key difference from a tax point of view is that the payments made to the player for playing football would be classified as employment income and would be taxed at 45%.

Payments for image rights on the other hand would in effect be rental payments for an intangible asset. Players would assign their image rights to a company (where they could be the 100% shareholder) and the company would only pay corporation tax of 19% on the income.

With the globalisation of the Premier League, there are now numerous players who are not tax domiciled in the UK and if their image rights were channelled through a non-UK company they could potentially escape tax altogether.

Given the size of the payments involved there’s a lot of tax at stake and no doubt the tax authorities will be looking closely at these schemes.

In the meantime, most of the readers of this blog are not professional footballers but instead undertake far more interesting finance and accounting activities in an office. Why not suggest to your boss at your next pay review that you’d like image rights instead of a pay rise so that you can receive more tax advantageous rental income from an intangible asset via your personal company…

DR Book $1.2m; CR Cash $1.2m

If I asked you how much would you pay for a book on double-entry, I’m guessing most of you wouldn’t be willing to pay $1.2m.

Whilst accountants the world over know and (sometimes) love double-entry, the most that most people would have paid for a book on double entry would be £20 to £30 when they were studying for their exams.

A book on double entry was sold a couple of years ago though for a lot more.

A great deal more in fact. 

$1,215,000 to be exact.

The book is an extremely rare book written by Luca Pacioli.

Luca Pacioli?

That name probably sounds familiar to many accountants reading this as Luca Pacioli was a Franciscan monk who came up with the concept of double entry back in the 15th century.

The book that was sold is called Summa de arithmetica and was printed in Venice in 1494. It contains the first published description of double-entry bookkeeping.

The Institute of Chartered Accountants of England and Wales (ICAEW) hold two copies of the book (neither of these are the book that was sold for $1.2m).

If you’re interested in looking at the contents of Summa de arithmetica you can do so courtesy of ICAEW’s “Turning the page library”.

Summa de arithmetica can be viewed here.