US businesses close behind with 29% of blockchain patents Chinese companies also have big lead in developing AI technology Governments may need to consider more R&D tax incentives 32% of all global patents for blockchain technology were filed by Chinese businesses last year, with 99 patents from a total of 314 filed with the World Intellectual Property Organisation (WIPO) in 2017, shows a new study by UHY, the international accounting and consultancy network. The study shows that US businesses are close behind with 92 global patents (29%), followed by Australian businesses with 40 patents (13%). UK businesses filed 34 patents related to blockchain (11%) with WIPO in 2017 (see table below). UHY says that Chinese businesses have invested heavily in blockchain technology in recent years, with the Chinese central bank supporting the development of a blockchain-based trade finance platform to help SMEs access finance. Bank of China also announced in August 2018 that investment in technology, including blockchain, would be 1% of the bank’s annual operating income. UHY adds that the biggest filer of global blockchain patents last year was nChain, a blockchain-focused research firm based in London and Vancouver, which filed 48 patents for blockchain technology at WIPO in 2017. In the United States, the largest filer of global blockchain patents was credit card provider Mastercard, which filed patents for developments including a system for offline blockchain exchanges. UHY explains that while European businesses have only filed a limited number of patents at the global level through WIPO, many have been more active at a local level. For example, while German businesses have filed no patents for blockchain technologies with WIPO in the last year, there have been six filed with the DPMA, the German Patent and Trademark Office. Chinese businesses are ahead in patenting new blockchain technology, but US is close behind Chinese businesses also lead the world in developing Artificial Intelligence technology The study also shows that Chinese businesses lead the way in the development of Artificial Intelligence (AI) technology, filing 473 from a total of 649 AI patents (31%) with WIPO last year. China is ahead of its global competitors by some distance in the race to build portfolios of intellectual property in AI. Its closest competitor is the United States, which filed 65 AI patents with WIPO last year (10% of the total). Only two global patents for AI technology were filed in the UK in 2017 (see table below). UHY says that Chinese businesses like Baidu – often described as the ‘Google of China’ – and technology and social media conglomerate Tencent are among the world’s leading developers of AI technology. Baidu filed the most AI patents at WIPO in 2017, with 183. In October 2018, Baidu launched an AI-powered translation tool which can translate spoken English into Chinese or German almost instantly. It also recently launched an AI-themed park in Beijing, which features self-driving buses and ‘smart walkways’ which track users’ exercise performance through facial recognition. The United States’ largest filer of AI patents with WIPO in 2017 was Berkeley-based startup Bonsai AI with seven. Microsoft announced its acquisition of the business in June 2018. Global competition over AI technology has heated up in recent years, with many national governments putting in place programmes to support businesses and universities in developing AI clusters and bringing technology to market. For example, Canada has introduced the CAD125 million Pan-Canadian Artificial Intelligence Strategy, which aims to increase the number of AI researchers in Canada, and develop AI clusters in Toronto, Montreal and Edmonton. In the US, the Trump administration announced in its 2019 Budget Request that artificial intelligence and autonomous and unmanned systems were Administration R&D priorities. New AI technology developments dominated by Chinese companies Rick David, Chairman of UHY, comments: “Blockchain and Artificial Intelligence could unlock significant economic growth over the coming decades, and businesses across the world are investing in making sure they benefit from that.” “Where countries are lagging behind in areas such as these, governments should consider tax incentives to encourage increased research and development.” “Developing Artificial Intelligence technology is also going to be critical in determining which businesses will emerge as leaders from the next industrial revolution. The businesses that are positioned best in the long term are those that benefit from private enterprise and government both investing to bring Artificial Intelligence technology to mass markets.” Kurt Lee, partner at UHY member firm ZhongHua Certified Public Accountants LLP in Shanghai, China says: “Development of blockchain and AI technologies are an important part of the China’s economic plans for the next two decades, as they could significantly enhance productivity. Both businesses and the government have made substantial investments in laying the groundwork for blockchain to play a central role in financial services in China.” Koko Yamamoto, Partner at UHY member firm UHY McGovern Hurley LLP in Toronto, Canada says: “Canada now has one of the highest concentrations of AI researchers anywhere, and Canadian universities like Toronto, Waterloo and Alberta have some of the world’s most advanced AI programmes. That rich environment has also translated into major investments in Canadian AI development by businesses including General Motors and Thomson Reuters.” Find out about our Technology & Software sector service offerings #2019 #Technology #UHYGlobal

Is the impending Brexit posing a serious threat to your business operations across European borders? Or is your business ready to grow exponentially by penetrating the European market? Let UHY FDW break Brexit barriers and assist your business to realise its full potential. Read our Be Brexit Ready service sheet for advice on the package we offer. Download #2019 #Brexit #BusinessGuide #BusinessinIreland

International Reach, National Presence, Local Knowledge We offer a range of mainstream and specialist professional services, ranging from ongoing compliance procedures to ad hoc projects and assignments. Learn about our firm and the services we offer in our Corporate Brochure. Download #2019 #UHYFDWTeam

Better Business Conference – January 2019 Join us for the Better Business Conference for solicitors, auctioneers and property management companies on 31 January. Venue: The Monasterboice Inn, Donegan’s Date: Thursday 31 January Time: 07:30 – 12:00 07:30 – 09:30 – Solicitors 10:00 – 12:00 – Auctioneers & Property Management Companies The Better Business Conference is a joint event with Bank of Ireland, Klyant, UHY FDW and UHY Insolvency which focuses on efficiency through technology and sector updates for the professional and business services sector, with the aim of helping you work smarter, better & faster. There will be presentations at each session from Bank of Ireland’s Head of Sectors, UHY FDW on the benefits of cloud accounting, UHY Insolvency on insolvency matters including debt negotiations and Klyant will discuss efficiency though technology. Contact us today to book your place For further details see below: Bank of Ireland Topic: Sector Insights & Trends Presenter: Pierce Butler, Head of Sectors Pierce has over 20 years commercial banking experience. He is responsible for leading the Sectors Team and developing and managing the delivery of the sector strategy. Prior to this, Pierce was Head of Capability and Performance for Business Banking where he was responsible for a team which developed and analysed Business Banking KPIs, managed business performance and developed a strategic approach to enhancing capability across the network. He has held many roles across Bank of Ireland Retail including Senior Relationship Manager for Wicklow, where he led a team in managing the financial requirements of a diverse portfolio of business customers. Pierce holds a BBLS Degree in Business and Legal Studies from UCD and a Postgraduate Certificate in Managing and Leading People. He is an Associate of the Irish Taxation Institute. Klyant Topic: Efficiency Through Technology Presenter: John Gilmartin, CEO A solicitor who has lead the team at Klyant for the last 5 years during which time Klyant became the market leading provider of accounting technology to the legal profession in Ireland. The company entered the UK market in 2018 and is launching in the North American market in 2019. John leads a team at Klyant who are passionate about building technology that will drive efficiency in their customer’s businesses and Klyant drives efficiency in its own business using only software systems that deliver clear results. John qualified as a solicitor in Ireland, England and Wales specialising in employment law with clients ranging from multinational corporations to owner managed companies. This experience coupled with his knowledge of the ever changing legal technology landscape means that John is an expert in his field. Presenter: Cormac O’Connor, VP of Sales Cormac manages the sales department in Klyant software and has been with the company for 3 years. The company now has more than 200 property firms using their software packages to manage their businesses. Klyant is a Property management software package that helps companies to manage the sales, lettings and management elements of their business, whilst also providing a full financial package too. Cormac has worked for Sony, Gamestop, and Microsoft and has also run his own business in the online digital space before joining Klyant. UHY Farrelly Dawe White Limited Topic: The Benefits of Cloud Accounting Presenter: Richard Berney, Director Richard became a partner of UHY Farrelly Dawe White Limited in 2008. He works with a myriad of clients from sole traders to multinational corporations. Richard’s expertise encompasses audit, tax, business planning and compliance services. He has extensive experience of advising successful and growing Irish privately owned businesses. Richard provides a complete service to his diverse client base using his vast experience in business advisory. Richard is also the lead director for the UHY FDW Cloud Team and our cloud service offering. UHY Insolvency Topic: Insolvency & Debt Negotiations Presenter: Eugene McDarby, Director Eugene is a Personal Insolvency Practitioner (PIP) and managing director of UHY Personal and Corporate Insolvency Solutions Limited Eugene is also Chief Executive Officer of Moneyvillage Ireland Ltd. www.moneyvillage.ie, the largest debt management company in Ireland with over €30m of Personal debt under management. Eugene is Former Chairman of APIP and one of Ireland’s Leading Industry Figures and media commentators. He has extensive executive experience in personal Insolvency, bankruptcy, debt management and the financial service Industry. Contact our Team Today to book your place Call Us +353 42 933 9955 Email Us info@fdw.ie #2019 #Events

The Business Guide to Cloud Accounting is an ebook from our UHY FDW Cloud team. It covers the basics, the benefits, implementing cloud accounting, case studies, testimonials and details of how our cloud accounting service differs. After reading this guide, you will have an understanding of the difference transitioning from a traditional accounting model can do for your business. “Even if your on-premise accounting solution seems to function “just fine”, the risk associated with maintaining old processes isn’t a question of capability – rather, it’s a question of whether or not you want to grow your business and maintain a competitive edge.” Download a free copy #2018 #CloudAccounting

Let’s have a look at three global trends impacting business: Generational Trends As Baby Boomers and Millenials grow older, shifts in the habits or life status of these groups will change business and the world as a whole. Baby Boomers (people born 1944-1964) are now reaching their retirement years in masses which means their relationship with money and possessions changes from accumulation to liquidation. People born in this time have collectively had a massive impact on economies. “They are moving from income earners and taxpayers to pensioners and welfare recipients. They are shifting from wealth accumulation to wealth liquidation. This trend will impact financial markets, economies and government policy.” Millennials, on the other hand, are heading into management roles, starting families and finding homes. “They believe in “access over ownership”, choosing to stream music rather than own albums and preferring Uber and AirBnB over cars and holiday homes. The business models of the past simply don’t cut it with this group.” Austerity “Governments will struggle to generate taxes to sustain the normal spending and borrowing habits of the past.” Governments have historically been bounded by a geographical location, but given large corporations act in a borderless fashion because of digital advancements – taxation is becoming more difficult. In the past, when governments failed to collect sufficient taxes from corporations, they were able to compensate from individual worker income tax. A combination of outsourcing cheap labour to foreign countries and a freer movement of people living and working in foreign countries, this will create friction. Consumption to Connection Successful businesses don’t just sell a commodity. A highly competitive marketplace has forged a new way of doing business, where there is an emphasis on creating a strong connection between the business and the customers. “Consumers want meaning, they want to see businesses that solve real problems and even tackle social issues. As we move into the 2020s, every entrepreneur will need to articulate what they stand for or stand against or face being bland and commoditised.” Resources: Irish Tech News #2018 #BusinessGuide #LatestTopics

UHY Capability Statement 2019 An annual publication showcasing the breadth and depth of UHY member firms’ services and cross-border business development capabilities presented through a series of client case studies. This edition includes eight case studies featuring a range of international clients across a variety of sectors: construction, pharmaceutical, retail, energy, transport & infrastructure, media & communications, minerals, metals & precious stones, high-tech, electronics & IT. Read Here #2019 #CapabilityStatement #UHYGlobal

The building boom in Ireland is not coming to an end, despite the sector’s struggles in 2018. The collapse of Carillion and thin margins are among the things that severely impacted the industry, sending many construction companies into liquidation or examinership. It’s evident that the problems of the construction sector in Ireland have to be addressed. CIF (Construction Industry Federation) is trying to rise to the occasion, warning the community of the difficulties faced by the construction companies, as well as coming up with possible solutions. But what needs to change so that the sector continues to grow? Let’s have a look at the current situation. State of the Crisis According to Sunday Independent, at least 42 construction companies in Ireland have gone into liquidation while many of them entered examinership. It was due to several reasons: public sector contracts that forced companies into lower bids, thin margins, as well as the collapse of Carillion. CIF director general Tom Parlon feels the completion of public-sector construction projects is at risk. Companies are being forced out of business by the public sector contracts’ inflexibility, Parlon appeals for something to be done about it. The willingness of company directors to take on projects with thin margins is an issue because when actual construction costs exceed the agreed fixed price, construction companies have little wiggle room. Lack of Workers in the Construction Industry Given the considerable shortage of construction workers exceeding 112 thousand, could a solution lie in drawing more women to the sector? Women working in the construction industry are few and far between. According to CIF’s survey , 99% of onsite construction workers are male. Offsite, the balance is not skewed so much in favour of men, with 54% of male offsite workers compared to 46% female.  3% of construction CEOs are female. It is why CIF proposes a widespread promotion of the construction sector, as well as raising awareness of the opportunities available to women in the industry. They’ve made it their central objective and started their #BuildingEquality campaign to focus on encouraging women to launch careers in construction. Conclusion In order to avoid more liquidations, decision-makers in construction companies could be more considerate to the risks in excessively undercutting competitors’ prices and committing to fixed price contracts. #2018 #BusinessinIreland #Construction

“ Despite our best efforts, delays in the approval process have forced us to make other plans and we will not be able to move forward with the data centre, ” Apple on the planning delays in Ireland. In our last construction piece, we gave focus to the inadequate level of property supply compared to the level of demand in Ireland. Several factors hold back the development of property in the country, including a shortage of around 112,000. What about the Irish planning process? There are several factors causing difficulties in delivering a sufficient property supply. Ireland has a time-consuming planning process that holds up the development of infrastructure. Could the system for planning permission approvals in Ireland be improved? Especially concerning the emerging plans of multi-national data centre builds. People opposing data centres are pointing towards the impact they could have on the electrical grid and the environment, which is a fair argument. There is arguably an excessive amount of time taken by authorities to make decisions and move the process forward. Ireland losing the contract for a €850 million (Apple) data centre in Athenry is a fitting example of the time-consuming planning process. The original planning application commenced in 2015, but when the process ran into 2018, the company scrapped the plans. Irish Planning System Speeding up the planning approval process would require a change to the centralised Irish planning system. One possible strategy is to increase the amount of designated Strategic Development Zones (SDZ) in Ireland. Planning applications in SDZ cases are innately straightforward and less time-consuming. An example is the Adamstown development (large scale residential development, integrating services such as a railway station, schools and other services into the area). Countries like England and Germany are comparatively less efficient than Ireland at meeting new levels of housing demand. But with levels of supply expected to fall short of demand for the next couple of years, one can argue changes need to be made to solve ‘the Government’s biggest issue’ – the housing crisis. Foreign Direct Investment in Ireland looks promising for the foreseeable future, but barriers in the construction sector should be dealt with sooner rather than later to maintain the positive influx of FDI. Changing the structure of the Irish planning system and using Strategic Development Zones for less time-consuming approvals are ways we could garner more efficiency in our building supply. Sources: ( data-economy.com , cif.ie , dora.dmu.ac.uk , Irish Times ) #2018 #BusinessinIreland #Construction

Is ‘the boom back’? What issues are limiting the growth of the construction sector? For one, a lack of skilled and unskilled construction workers. Skilled and unskilled construction workers left Irish shores as opportunities dwindled after the property crash hit Ireland. Those construction workers left the country for opportunities in countries like Australia, Canada, the US, New Zealand and Dubai. Why won’t these workers return? For one, the qualifications these Diaspora workers received in those countries aren’t recognised by Irish authorities, which is repelling workers that have received further qualifications while working in foreign countries. The construction industry is recovering after the property crash of 2007-2010. However, the high demand for property is not being met with an adequate level of supply. The value of construction output was estimated at €12.7 billion in 2015. The volume of construction output by 2020 is forecast to reach €20.2 billion (in 2015 prices), or just over 10% of GNP. The need for housing is at a demand level of 30,000 units, and the number of completed units that the Construction Industry Federation estimated for 2017 was 18,000 units. The supply of new homes is expected to fall considerably short of demand for several years. The Economic and Social Research Institute has increased the ‘desired output target’ of housing from 25,000 units to 35,000 units. Another factor in why the industry is growing strongly is the influx of foreign investment, resulting in the construction of industrial plants and data centres. A major problem that is stunting the growth of the industry is the lack of construction workers. Emigration following the property crash has resulted in a shortage of 112,000 workers according to the Financial Times. Ireland’s construction industry is experiencing strong growth. The construction of housing, industrial centres, and data centres are all on the rise in Ireland. However, the shortage of construction workers is one factor that may continue to limit the potential growth of the sector. Aside from a shortage of workers, other difficulties exist in this sector. UHY FDW can assist your business in navigating around key challenges like getting access to finance, adapting to the ever-changing tax regulations, managing the current cost of construction and more. Sources: ( Financial Times , Irish Times , EKM Economic Consultants , irishbuildingmaagzine.ie ) #2018 #BusinessinIreland #Construction

Back in September 2017, the European Commission set out the approach to the taxation of the digital economy. Fast-forward to March 2018 to when there were two separate legislative proposals for taxing digital business in the EU – the Digital Services Tax (DST). The proposed digital services tax (DST) figured currently at 3% is to be implemented by member states by January 1st, 2020. One of the main aims of the proposal is to protect the development of small business. Limiting this digital tax to companies with global revenues of €750 million and EU revenues of €50 million consolidating that aim. The ECON (EU’s parliament economic and monetary affairs) committee has weighed in on the issue and gave recommendations to how the Commission should amend the tax proposal. The stand-out amendment being the increase in excise tax from 3% to 5%. This revised DST (digital services tax) would level the playing field between digital and traditional business. Bricks-and-mortar businesses pay an estimate of 20.9%, increasing the digital services tax to 5% creates an imputed corporate tax rate of 20% in contrast to the 13% envisaged by the Commission. The proposed taxation of digital business includes firms in advertising sales, intermediary activities and user-generated content. ECON is suggesting to broaden the scope of what types of companies will be tax liable. Businesses that supply content via digital interfaces and sales of goods/services via e-commerce platforms should be in the proposal. At the Economic and Financial Affairs Council (ECOFIN) meeting on the 6th of November, proposals were discussed. Ireland, Sweden, and Denmark were all critical of the measure during the meeting. Although there has been progress on definitions, tax collection, and administrative cooperation, two key issues found with the proposal include the scope of taxable services covered by the proposed regime and the duration the new tax would be in operation. All member states are in agreement that once a comprehensive solution to taxing the digital economy has been found at an international level, DST should cease. The next meeting about the digital tax will be held on the 4th of December, in the meantime, there is technical work required on the proposal given identified technical issues with the details of the plans. EU Vice-President Valdis Dombrovskis: “ Reaching [a] deal as soon as possible is important for two reasons. First, our taxation system needs to be updated to reflect [the] economic realities of the 21st century. Our economies are increasingly digital and this trend is here to stay. ” Sources: tax-news.com , taxjournal.com . #2018 #BusinessinEU #Economic #TAX

Alan’s appointment to the UHY board of directors reflects his longstanding experience in the auditing & accounting profession and follows on from his previous role as president of CPA Ireland. UHY, the international accounting and consultancy network, has appointed the Managing Director of Irish member firm UHY Farrelly Dawe White Ltd., Alan Farrelly, to the board of directors of UHY. Alan began his career when he started Farrelly Dawe White in 1989 after being active in the industry since 1981.  As well as being a well-respected accountant, auditor and business advisor, Alan also has extensive experience in corporate finance, insolvency, mergers & acquisitions and transactional services. He was the chairman of the UHY Membership Training Working Group for three years and has represented the brand at numerous conferences. During his more than 37 years’ experience in the industry, Alan has been president of CPA Ireland, chairman of the Leinster Society CPA Ireland and the Joint Accountancy Conference Ireland. He still sits on the disciplinary committee of CPA Ireland. Alan comments: “It’s a great honour that fellow members of UHY International have elected me to this position.” One of Alan’s key priorities during his time as a board director is to maintain the position of UHY as one of the global leaders of the accountancy world. “I believe in representing all members by being open and approachable. I understand that the Accountancy profession is in the ‘grip of change’ and so I will strive to keep UHY at the forefront of the profession.” Technological revolutions like cloud computing, artificial intelligence, and data analytics are at the core of innovative new accounting practices. UHY knows the potential these technologies have for the profession, especially in terms of efficiency. Alan comments: “The ever-changing accounting environment is now being driven by AI, cloud accounting and data analytics. This represents a huge opportunity for the accounting profession but will require an element of upskilling. These changes will ultimately lead to an advisory based profession that will drive better management information for client businesses.” New UHY president, Rick David: “With a more globalised and connected world than ever, the industry has to ‘think local, go global.’ The UHY network is a key vehicle to help us build relationships with clients and serve them by tapping into that wider bank of expertise across the world.” A ten-member board of directors develops, implements and supervises UHY’s strategic activities and governs daily management activities at a global scale. Alan joins the board of directors consisting of individuals from the US, Mexico, Spain, UK, Argentina, Australia and China.  Alan takes the place of Muriel Nouchy from UHY GVA in Paris. “After getting a vote of confidence from UHY members to become a board director, I’m looking forward to the challenge of maintaining and developing high-level brand performance globally.” #2018 #HR #UHYFDWTeam