Indonesia tax on metals risks China shipments

A piece of Ni about 3 cm in size Category:nick...

HONG KONG/JAKARTA May 4 Reuters – New Indonesian taxes on metals and curbs on shipment of raw minerals are likely to hit exports of nickel and bauxite to China, an industry source said on Friday, highlighting concerns over the impact of the policy on Southeast Asias biggest economy.Jakarta aims to boost investment in domestic ore processing to lift exports of higher-value finished metals by the G20 economy through the new rules which come into force on Sunday.

The resource-rich nation is imposing a 20 percent tax on some m etal ore exports and will prohibit shipments of raw minerals unless miners submit plans to build smelters.

The rules are likely to affect less than a third of Indonesias metal exports but are a precursor to a total ban on raw material exports by 2014.

Around 10,000 holders of mining business permits , mostly small-scale miners in the worlds top nickel miner and tin producer, will be required to produce plans of how they will process and smelt ores within Indonesia ahead of 2014, or face a ban on exporting from Sunday.

“Chinas imports of nickel laterite ores from Indonesia may fall sharply after May, which would force Chinese nickel-pig-iron producers to cut production as ore prices rise,” said a trade manager at a nickel pig iron producer in China, which has two ships at an Indonesian port trying to leave by Sunday.Indonesia supplied around 80 percent of Chinas nickel and 53 percent of its bauxite last year, according to PwC data.

via Indonesia tax on metals risks China shipments | Agricultural Commodities | Reuters.

Enhanced by Zemanta
Advertisements

PwC sloppiness 55 billion euros error

Eurozone

(Reuters) – The German government tried to deflect responsibility on Monday for a 55-billion euro accounting blunder that has exposed it to charges of ridicule for being inept and hypocritical after its steady criticism of Greek bookkeeping practices.

Finance Minister Wolfgang Schaeuble has summoned executives from the nationalized mortgage bank Hypo Real Estate (HRE) to explain how they made a simple accounting error that ended up raising Germany‘s total debt load by 55 billion euros.

Schaeuble, in the awkward situation of being humiliated by the windfall that will cut Germany’s debt levels, will also demand answers at a Wednesday meeting from the PwC accountancy firm that signed off on the report.

Schaeuble’s spokesman Martin Kotthaus tried to deflect any blame, saying the ministry received a certified statement from auditors that the balance sheets had been checked and approved. He said it was too early to tell exactly who messed up.

“It’s annoying, to put it diplomatically, when corrections of this dimension are necessary,” said Kotthaus, who was grilled at a news conference. “We had a certified audit of the annual accounts for 2010 and it said everything was in order.”

Kotthaus said the bank itself was responsible for its annual report.

The German media nevertheless mocked Schaeuble, saying the 55-billion euro accounting error put Berlin in the same category as the Greek government for failing to report accurate figures. Inaccurate reporting of Greek deficits contributed to the euro zone sovereign debt crisis that has hit Europe hard.

“Incredible but true,” wrote the Rheinische Post newspaper. “The nationalized bank HRE made a staggering 55-billion euro miscalculation. It’s scandalous that bank managers, certified public accountants and government supervisors made an error of this dimension. This kind of sloppiness reminds us of Greece.

via Germany mocked for 55-billion euro bank accounts error | Reuters

Accounting can be door to professional class

Ernst and Young HQ in Munich, Germany

Image via Wikipedia

WASHINGTON, Oct 16 (Reuters) – When Gemma Urquiza interviewed for her job at True Partners, a Chicago tax and consulting firm, she remembers talking about her university honors, her ambitions and her dad’s restaurant.

Urquiza, 25, is the eldest of four children of Mexican immigrants and, like many first-generation Americans, she’s found accounting to be a perfect fit.

Her employer likes her work ethic and multicultural upbringing, as well as her technical mastery and spreadsheet savvy. She likes the variety of the job and its stability.

Accounting has long provided a path for first-generation Americans into the professional classes. Good pay and a focus on numbers makes it an attractive career choice.

Still, recruiting the children of immigrants is complex, say some Certified Public Accountants (CPAs). Parents’ opinions are influential and they often don’t know the field, a problem that alternatives like medicine or the law don’t face.

Once on the job, first-generation CPAs can face new challenges like decoding the relationship-driven, sometimes self-promotional American business culture.

As accounting firms rev up recruiting efforts on college campuses this fall, there is rising demand for multicultural candidates like Urquiza to match an increasingly global focus.

“It’s important to have talented accountants that reflect the demographic of a global economy.” Ken Bouyer, Ernst & Young Americas director of inclusiveness recruiting, told Reuters.

Specific figures on first-generation CPAs are hard to come by, but the biggest firms are spending millions of dollars on a diversification push that’s trying to reach minorities in college, high school and even as early as grammar school.

At a time when it is tough for many new graduates to find work, the Big Four accounting firms — PwC, Deloitte, Ernst & YoungKPMG– report they expect to hire more than 30,000 graduates this year.

via Accounting can be door to U.S. professional class | Reuters

China’s accounting problem

KPMG offices in Leeds, West Yorkshire, UK. May...

Image via Wikipedia

The Big Four — PwC, Deloitte & Touche, KPMG and Ernst & Youngaudit the books of most of the world’s largest corporations through networks of legally separate audit firms. Their Chinese arms, which also audit Chinese operations of large multinational companies, have also been beyond the reach of PCAOB inspections.

via Analysis: Painful choices loom on China’s accounting problem

Success for SA designer

Clothing in store, ready to wear, off the rack...

Image via Wikipedia

Johannesburg – South African-born fashion designer and entrepreneur Lesego Malatsi has gone from stitching ready-to-wear garments in a Soweto township mall set amid shanties to savouring the sweet success of London’s fashion week.

Malatsi had his first international show at the weekend in the British capital, where he displayed a collection of new-look African prints at the Fashions Finest event backed by Richard Branson‘s Virgin Unity initiative.

“Honestly, you don’t know how to prepare,” Malatsi said from London in a telephone interview with Reuters.

Malatsi has taken a long road to London that started in a tiny home in Soweto.

He first tried his hand at accounting after leaving high school, but a stint at a cosmetics company altered his career aspirations.

“(It) changed my mind and how I saw things,” he said.

He then studied fashion at the Cape Peninsula University of Technology and has been making clothes since.

via Success for SA designer: Fin24: Entrepreneurs.

Tax break for energy savings


JOHANNESBURG (Reuters) – South Africa plans to give a tax allowance to companies that save energy in a bid to reduce greenhouse gas emissions, the Department of Energy said on Friday.

Africa‘s biggest economy has been under pressure to reduce its carbon footprint, with more than 90 percent of its power currently supplied by coal-fired plants. It also faces tight supplies in the face of fast-rising demand.

The department said the regulations, which the public can submit comments on for the next 60 days, would provide a tax allowance for any company that produced a certificate proving its energy savings were genuine.

Companies would have to submit the certificate to the South African Revenue Service to claim the allowance.

A senior government official said on Wednesday South Africa was confident that a recently launched bidding process for renewable energy will lead to the addition of 3,725 megawatts of green energy to the national grid by 2016.

via S.Africa moves to company tax break for energy savings | Reuters.

Gabon new tax-free zone

Topographic map of Gabon-fr

Image via Wikipedia

NKOK, Gabon, Sept 9 (Reuters) – Gabon launched on Friday what it billed as the biggest special economic zone (SEZ) in West and Central Africa, aiming to attract $1.1 billion a year in foreign investments via tax breaks.

Firms that set up in the 1,126-hectare zone in the town of Nkok 27 km (17 miles) outside the capital Libreville will be exempt from taxes on profits for 10 years, after which they will pay a rate of 10 percent.

Officials said the zone, a joint venture between the Gabonese state and Singapore-based commodities firm Olam International , will focus especially on timber processing activities.

The sector is one of the industries on which President Ali Bongo Ondimba is counting to diversify Gabon’s largely oil-based economy.

“The Nkok SEZ will be the biggest economic zone in West and Central Africa with, among other things, a processing capacity of one million cubic metres of wood a year,” Mines Minister Alexandre Barro Chambrier said at the launch, adding it would create 9,000 jobs.

The goal of $1.1 billion of annual foreign investment in the zone is equivalent to a quarter of Gabon’s annual budget.

Indian conglomerate Abhijeet said it alone planned to invest nearly $1.2 billion dollars in the next 36 months.

Abhijeet Chairman Manoj Jayaswal told reporters it would spend $800 million to build an iron alloy plant with annual production of 300,000 tonnes, and $400 million on construction of a 300 megawatt power station.

via Gabon launches tax-free zone to attract new investors | Agricultural Commodities | Reuters.

  • Gabon (igaluxy.wordpress.com)