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Brexit Update - September 2018

   

In this wide-ranging discussion, EisnerAmper’s Transfer Pricing Practice Leader Dr. Henric Adey gives us the latest on Brexit, including how the Irish border and the customs implications are currently at the center of the debate, the increasing likelihood of a hard Brexit, and what he’s advising clients in light of recent developments. 


Transcript

Dave Plaskow: Hello and welcome to EisnerAmper’s podcast series, where we try to dig a little deeper on accounting and finance issues facing business professionals and their clients. It’s time for another Brexit update. I’m your host Dave Plaskow and with us again to share his expertise is EisnerAmper’s Transfer Pricing Practice Leader, Dr. Henric Adey. Henric, since we last spoke at the end of 2017 a lot has happened regarding Brexit. Can you fill us in?

Henric Adey: Certainly Dave. Here are some of the recent key dates and events. On June 26, 2018, the Queen of England gave a Royal Assent to the European Union Withdrawal Act. That was quickly followed on July 9 by the resignation of Boris Johnson and David Davis as Britain’s Brexit Minister. Then, on July 24, 2018, Theresa May said she will lead the negotiations with the European Union but with a secretary of state for exiting the European Union on her behalf. So, then, there was the legislation which was amended to some parts of the EU withdrawal bill, which was passed last month after a series of very narrow votes, to ensure that the U.K. statute book continues to function during the 21-month transition period, and the new bill would also create sort of financial authority that would manage divorce payments which will total between £40 to £50 billion, which is quite a significant amount of money. And on July 26, Theresa May secured approval from the cabinet for a deal that would foresee the U.K./EU free trade area, and I think that’s important because the EU’s chief negotiator has ruled out allowing the U.K. to collect customs duties on its behalf – a key U.K. proposal for post-Brexit trade. So, a lot is going on, and we see a lot of worry for a no-deal position where also the U.K. has issued 25 documents of guidance of what would happen under a no-deal position.


Henric Adey is the Transfer Pricing Practice Leader at EisnerAmper. As practice leader, he is responsible for advising clients over a wide span of industries concerning both international and multi-state transfer pricing matters.

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