https://youtu.be/Yg-qo8OvzkM
The official launch of the PwC Chair in the Internationalization of the Accounting Profession—a joint initiative of the School of Business and Social Sciences and PricewaterhouseCoopers Uruguay—took place. The event, held as a webinar and featuring presentations by officials, faculty members, and national and international experts in accounting and tax matters, took place on Wednesday, November 25, 2020.
A comprehensive and sustainable vision
The opening address was delivered by Dr. Gaston J. Labadie, dean of the School of Management and Social Sciences, who presented the center’s new mission and noted that, since its founding, it has sought to adopt an international perspective.
“Our mission is to produce professionals who, through their skills and attitudes toward change and entrepreneurship, their sense of responsibility and results-oriented approach, and their ability to make decisions based on evidence and critical analysis, are capable of making a difference, ”said Labadie. He also emphasized the importance of graduates becoming people of integrity who are proactive in the face of societal and business transformations and the acceleration of technology and digitalization, with a global and sustainable vision.
“For some time now, we have been working toward a vision of becoming a world-class, forward-looking, agile business school that builds partnerships with all stakeholders.”
Labadie also provided details about the new courses that will be added to the school’s curriculum and expressed his hope “that this will be just the beginning and that we will continue working together, building on our strengths, pooling our resources, and collaborating to develop distinctive skills and capabilities in the country and the region.”
Introduction to the Chair
For Patricia Marques, a partner in the Tax, Legal, and Accounting Advisory and Human Capital practices at PwC Uruguay, the launch of the chair is particularly necessary “at a time when it is essential to stay up to date, monitor trends, and keep abreast of regulatory, tax, and accounting changes.” Marques noted that professionals must be adaptable and think globally, with comprehensive and up-to-date knowledge.
According to Dr. Nicolás Gambetta, the faculty’s academic coordinator for graduate programs in Accounting and Taxation, “the challenges facing the accounting profession in this context are enormous.” Gambetta expressed his intention for the course to be interdisciplinary, to collaborate with existing courses, and to provide them with specialized resources and materials.
The chair, designed to serve as a driving force for academic research, will be organized into three areas of focus:
- Training: development of specialized courses, creation of content for other departments.
- Outreach: academic and technological outreach events.
- Research: projects, case studies, and specialized conferences at the national or international level.
In addition, the department will have a tax division and an accounting division, with teams composed of faculty members, professionals, students, and alumni, as well as leaders from the public sector and civil society. The first major topic to be addressed by the tax division will be the digital economy, while the accounting division will focus on the differences between the IFRS and US GAAP regulatory frameworks.
Taxation of the Digital Economy
In 1998, the Organization for Economic Cooperation and Development (OECD) published its first report on the digital economy; today, it is one of the most pressing issues on the international stage.
“We’re starting to talk about market jurisdictions—where the consumer is, since they’re the ones who add value to the digital economy,” said Eliana Sartori, Director of Tax, Legal, and Accounting Advisory Services at PwC Uruguay. “Taxation principles are being redefined.”
According to Dr. Carlos Miguel Chaparro, lead partner of Legal and Tax Services at PwC Colombia, the concept of the digital economy has become outdated, and today we are talking about the digitization of life. “The issue of globalization is absolutely critical. We are witnessing an attempt to overhaul tax systems that have been in place around the world for decades,” he noted.
“There is international consensus that the fundamental principles of tax law need to be revised.”
Chaparro said that the way we do business has changed completely. “The pandemic has forced us to operate virtually and digitally like never before.”
The expert explained that the OECD’s proposal is based on two pillars: the first is to determine taxation based on the concept of significant economic presence. The second is the establishment of a global minimum tax, the implementation of which would require multinational companies to pay a minimum tax wherever they have a presence; this could reduce the competitiveness of countries such as Uruguay, which offers favorable tax conditions to potential investors.
Comparison of IFRS and US GAAP Accounting Standards
Speaking about the globalization of the accounting profession, Julia Cabrera, CPA, an audit partner at PwC Uruguay, emphasized the importance of expanding the boundaries of regulatory frameworks and languages in a world where stakeholders are not constrained by geographical boundaries.
Sergio Cravero, a partner in the Audit practice at PwC Argentina, listed the factors driving the internationalization of the accounting profession: talent shortages, technological disruption, access to capital, and location. “There is a surplus of labor, but a shortage of qualified talent, ”he said.
He stated that Uruguay, in addition to offering stability and a degree of predictability, has developed incentives to attract foreign businesses to set up operations in the country. “Accountants must be able to understand, apply, and communicate in different accounting languages,” he said.
Cravero reviewed the main accounting frameworks and the differences between the IFRS and US GAAP systems: asset and liability valuation, consolidated financial reporting, and the presentation of financial statements. As the event drew to a close, he noted that the international reach of accountants is a reality.“The internationalization of the profession is evident in practice.”