Base Erosion and Profit Shifting Framework (BEPS)

In compliance with the international conventions, the State of Kuwait has signed, on 7th of June 2017, a multilateral agreement to implement the procedures relating to Base Erosion and Profit Shifting Framework (BEPS).

Worth mentioning that Base Erosion and Profit Shifting (BEPS) refers to an international law that aims at combating tax evasion and ensures that countries collect their due taxes from all the companies working in the country as some companies tend to establish fake headquarters in the countries that are classified as “Tax Haven” with the aim of Base Erosion and Profit Shifting.

Baker Tilly Kuwait assists you comply with laws, regulations, resolutions and instructions issued by the regulators as well as enhancing the sound tax planning to avoid multiple taxation in several jurisdictions through:

• Attestation of BEPS Compliance Reports as required by the relevant authorities.


• Experts with an in-depth experience in the Tax Compliance consulting domain;


• Our commitment to on time delivery with quality deliverable and implementation.

Baker Tilly Celebrates Teamwork Achievement 2016

Living Our Mission

As teamwork is one of the KPIs achieved by the end of 2016, Baker Tilly celebrates the team work achievement during 2016 as it managed to carry out its mission through the dedicated work of its members. The 50+ plus employees of Baker Tilly work in a harmony as a team. In their different positions, they all contribute to Baker Tilly’s mission and visions with dedication, loyalty and respect.

Baker Tilly always believe in creating a harmonious work environment which balances both, work and play. This helps not only in business growth but also in a healthy work environment.

Latest amendments to the Executive Bylaw of the Capital MarketAuthority Law On 4 May 2017, the CMA issued the Resolution No. 64 of2017

[vc_row][vc_column][vc_column_text]On 4 May 2017, the Capital Market Authority ("CMA") issued the Resolution No. 64 of 2017 pertaining to amending the Executive Bylaw of the CMA Law which comes into effect as of the date of its issuance. Some amendments have been made to the Module Three (Enforcement of the Law), the Module Eight (Code of Business Conduct) and the Module Fourteenth (Market Conduct).

The amendment made to the Module Eight referred to above is the issuance of a new Addendum to the said Module concerning "the Standards for Record Keeping Systems". Under this amendment, the persons licensed to carry out any of the following securities activities (investment portfolio manager - securities broker registered on the stock exchange - securities broker not listed on the stock exchange - qualified securities broker registered on the stock exchange – custodian) shall make a reconciliation and comply with the technical requirements mentioned in the said Addendum, including developing policies and procedures manual for Record Keeping Systems and to provide the CMA with the same no later than 1 June 2018, while observing complying with all the provisions of the Module Eight of the Executive Bylaw.

The technical requirements stated in this Addendum are pertaining to the means of receiving and retaining the customers' orders, including (telephone conversations - electronic correspondences - electronic trading - direct orders within the authorized person's premises - written orders) and their consequent obligations and requirements, in addition to some other general requirements.[/vc_column_text][/vc_column][/vc_row]

Do Internal Auditors and Doctors Have Something in Common?

“I would like to welcome you to my first blog post with Baker Tilly and I hope that the minutes you will spend reading it will add value to you.

Like many business and management theorists, I believe that business entities are similar to living organisms when it comes to their life cycles. They are born, they grow and develop, they get sick, they reach maturity, they begin to decline and age, and finally, in many cases, they die.

Now, what would a prudent person do when he feels sick? Indeed, any prudent person would not wait it out and hope he will get better on his own. Instead, he will visit a doctor to find out what is wrong.

Ok, so does this mean that the only time to visit a doctor is when you feel sick? Definitely not, it is important to visit your doctor regularly to get preventive care. Preventive care lets your doctor find potential health problems before you get sick.

Likewise, with business entities being vulnerable to countless risks, they should consider having specialists who have adequate knowledge, skills and abilities to assist them dealing with risks in a prudent and reasonable manner.

Who are the internal auditors?

They are the specialists who schedule periodic check-ups to examine the healthiness of nearly all processes within the business entity. They are the ones who provide advice and insight on how to improve these processes.

In simple terms, they are the doctors of business entities.

Hold on, doctors also get sick!

Well, that is true. That is why internal auditors are required to have ongoing and periodic quality assurance programs as mandated by the International Standards for the Professional Practice of Internal Auditing (Standards) issued by the Institute of Internal Auditors.

Bottom line, I believe that the value derived from equipping business entities with strong and well-resourced internal audit functions cannot be compromised.”

References:

Haire, M. (1959). Modern organization theory. John Wiley.

Bahij Elkhatib

Bahij N. Elkhatib, CIA, CMA, CIDA, is assuming the role of Internal Audit & GRC Manager with Baker Tilly Kuwait. He has considerable experience in providing Internal Audit & GRC services to clients in different industries.

Kuwait Banks Mandated to Take the Necessary Procedures to Implement Common Reporting Standards (CRS)

On 15 July 2014 the CRS, an information standard for the Automatic Exchange of Information (AEoI) was developed and approved by the Organization for Economic Co-operation and Development (OECD) Council.

On 19 August 2016, the Government of the State of Kuwait represented by the Ministry of Finance (MoF) signed the Multilateral Competent Authority Agreement (MCAA) with the OECD for exchange of information for tax purposes. Pursuant to the MCAA, the Financial Institutions (FI’s) in Kuwait shall provide the MoF with financial information in accordance with the CRS.

In light of the above, on 22 February 2017 the MoF officially communicated the MCAA to the Central Bank of Kuwait (CBK) and instructed the CBK to inform all local FI’s to begin the process of gathering the required financial information in line with CRS.

The CBK in return instructed all banks operating in Kuwait, through circular number 2/BS/IBS/403/2017, to comply with the MOF letter of 22 February 2017 and the MCAA of 19 August 2016.

In order to assist banks in Kuwait to comply with the requirements of CRS, Baker Tilly Kuwait offers the following services:

1. Preparing a GAP Analysis Report


2. Developing CRS Policy and Procedures


3. Providing ICT consulting services for CRS compliance


4. Training Services

New CMA Circular Regarding AML-CFT Annual Reporting

Date of issuance 8 January 2017,
Deadline 1 March 2017

On 8/1/2017, Capital Markets Authority (CMA) issued circular No. (2) Of 2017 on Licensed Persons’ Annual Report. The circular highlighted the importance of compliance with the provision of Article (7-5) of Module Sixteen of the Executive Bylaws of Law No. (7) of 2010 on preparing an annual report by the compliance officer to the board of the licensed person.

The said report should include all actions taken to implement the internal policies, procedures and controls and any proposal for increasing the effectiveness and efficiency of the procedures, in addition to submitting a copy of the report to the CMA no later than 1st of March.

Baker Tilly International Named Network of the Year 2016

Baker Tilly International has been named the winner of the prestigious Network of the Year Award at The Accountant & International Accounting Bulletin (IAB) awards 2016.

The annual Accountant & International Accounting Bulletin (IAB) awards celebrate excellence in the accounting profession and bring together some of the most prominent people in the industry.

“The IAB Network of the Year is awarded to networks that have demonstrated the execution of profitable growth strategies during the past 12 months and have excelled in a number of key strategic and operational areas. They are also recognized by the industry as a reputable brand that consistently delivers high quality professional services.

Commenting on the award, Ted Verkade, CEO and President of Baker Tilly International, said: “I am exceptionally proud that the network has been recognized by IAB for our outstanding growth, our innovation and commitment to delivering excellent client service, and for being the first network to obtain the ACCA Approved Employer status award in professional development”.

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"There was a well fought battle in this category, and had it been an athletic race a photo finish would have been needed to determine the winner. The jurors commanded the close second, RSM, for their good growth and successful rebranding of the network. But Baker Tilly International took the prize for a well-rounded submission that discussed good growth, excellent client satisfaction scores, many employer awards showing focus on people and innovating globally with its one audit methodology and other tools.
Growth was reported in all four service lines - audit, accountancy, tax and consultancy – and Baker Tilly International was the first network to obtain ACCA Approved Employer status award in professional development. "

7 October 2016 by IAB and TA editorial

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