Forensic Accountant considers marijuana audits at international meeting in New York

Roger Isaacs, a Forensic Partner at South West Accountancy firm Milsted Langdon, has recently returned from the U.S. where attended the North American Regional Conference of the global MGI Worldwide accountancy network of which he is currently the Chair.

Roger joined fellow accountants and advisers at the prestigious The New York Marriott Marquis Hotel on Times Square.

Roger chaired a meeting of the network’s International Committee which has representatives from Africa, the Middle East, Asia, Australasia and South America as well as from Europe and the UK.  He then opened the conference proper with a presentation given by him and MGI’s Chief Executive Officer, Clive Bennett.

The two-day event was a fantastic opportunity for Roger to chat to accountants from dozens of U.S. states and other nations and discuss how best they could work together to help their clients with their increasingly international businesses.

Speaking about his attendance at the event, Roger said: “The North America Region Meeting was a big success and our members were able to discuss a number of important topics, while also enjoying all that the Big Apple has to offer.

“One of the most interesting topics under debate was the challenges faced by firms undertaking audit and tax compliance work for cannabis producers.  Several states have now legalised cannabis for health or recreational use but it remains illegal elsewhere in the USA.

“This gives rise to a number of anomalies including the fact that federal law requires cannabis firms to be audited despite the fact that their activities are illegal from a federal perspective.  Another challenge for the industry is that few banks will accept the proceeds from cannabis sales.  This means that companies selling cannabis tend to hold vast sums of cash.

“Surprisingly there are even special rules that apply to the way in which federal taxes are calculated in relation to businesses which are carrying out activities that are deemed to be illegal.

“We regularly work with our partners in the U.S. on trans-Atlantic matters, so events like this help us to cement relationships and gain new insights. This was particularly useful in the context of the fact that although cannabis remains illegal in the UK there has been a huge growth in the legitimate sale of cannabidiol and. related products.

“Thanks to the knowledge we have gained at the conference, Milsted Langdon is ideally placed to advise firms in the UK or UK subsidiaries of overseas groups in the sector on the complexities that arise from operating in this highly regulated sector

By working with firms in other jurisdictions and with the leading UK cannabis law firm, Mackrell Turner Garrett, we are able to offer clients genuinely joined up specialist advice.”

In his official role as Chairman of MGI, Roger has attended numerous events during the last 12 months, giving him a unique insight into the world of global finance and business.

MGI Worldwide is a Top 20 international network of audit, tax, accounting & consulting firms and is made up of more than 5,230 professionals located in 92 different nations.

To find out more about MGI, please visit www.mgiworld.com

Posted in Forensic, Press Releases.