Friday, February 27, 2026

Microsoft's AI chief predicts accountancy automation in two years [GLOBAL]

Mustafa Suleyman claims AI will reach human-level performance in accounting roles within 24 months. Vendors accelerating: Xero launched GenAI for reconciliations, Intuit released Assist, Sage pushes real-time data, Wolters Kluwer extracts tax data from unstructured sources. Profession sceptical. Users rejecting integrations when costs passed to smaller platforms. Xero's API changes could cost providers £17,000 annually. Critics argue most 'AI' is rebranded automation. Data security and regulatory compliance still barriers. UK Making Tax Digital for Income Tax launches April 2026, affecting 1 million sole traders. Full automation requires solving data quality, compliance, judgement calls.

Source: AccountingWEB

PwC eliminates entire US talent acquisition team [US]

PwC has cut its entire US talent acquisition department, including leadership, recruiters, campus staff, and nearshore teams. The firm cited reliance on contractors and third-party labour for the next two years. This follows a May 2025 layoff of 1,500 US roles and global cuts of 5,600 positions in FY2025. US revenue growth fell from 10.7% in 2023 to 3.4% in 2024. Global revenue rose just 2.9% to $56.9bn, down from 9.9% growth in FY2023. PwC is investing $1.5bn in AI whilst shrinking its recruitment pipeline.

Source: Going Concern

Wednesday, February 25, 2026

[US] Trump's Lawyers Locked In On $170bn Tariff Refunds

Supreme Court struck down Trump tariffs 20 February 2026. Justice Department previously assured courts refunds were guaranteed if plaintiffs won. Government now boxed in by its own written commitments to the Court of International Trade. Over $170 billion in disputed duties collected. About 1,500 companies filed suit. CFOs must act immediately: monitor liquidation deadlines, compile documentation, reassess ASC 450 contingencies and ASC 740 tax positions. Refund timeline remains uncertain. Multi-year litigation likely despite DOJ's prior assurances limiting government's negotiating room.

Source: CPA Practice Advisor

Tuesday, February 24, 2026

Grattan pushes CGT discount halve for stamp duty kill [AU]

Grattan Institute argues halving the CGT discount from 50% to 25% over five years would generate $6.5 billion annually to fund stamp duty abolition. The top 20% of earners capture 89% of CGT discount benefits, averaging $86,000 annually versus $5,000 for the bottom 60%. Stamp duty removal would improve labour mobility and housing turnover. Senate inquiry reports 17 March. Labor reportedly considering CGT changes for May budget. Critics warn reduced discount could trigger investor sell-offs and rental market disruption, potentially cutting construction by 10,000 homes by 2030.

Source: Accountants Daily

[US] CPA Pipeline Crisis: 653,408 Licensed, Massive Shortage Looms

Licensed CPAs fell to 653,408 as of August 2025, down from 1.93 million in 2019. Accounting graduates dropped to 47,000 in 2023, a 30% decline from 2014-15 peak. BLS projects 136,400 annual openings through next decade. Baby boomer retirements, CPA exam bottlenecks (42-63% pass rates), and automation eroding entry-level roles drive exodus. AICPA Pipeline Pledge shows early stabilisation: accounting enrolments up 12% in 2024-25. Still insufficient. CPA hiring now takes 73 days, 41% longer than average. Over 720 companies cited insufficient accounting staff in filings. States testing licensing reforms show modest gains of 4-8 days.

Source: CPA Journal

Saturday, February 21, 2026

US Supreme Court Blocks Trump Tariffs, Kicks to Congress [US]

US Supreme Court ruled 6-3 on 20 February 2026 that President Trump's global tariffs exceeded his authority under the International Emergency Economic Powers Act. Decision returns tariff policy to Congress, where Republicans hold razor-thin majorities and Democrats oppose broad duties. House passed legislation ending Canada tariffs this month. White House signalled it will pursue alternative legal tools, including Section 232 national security authority or Section 301 investigations, though both require lengthy processes. CFOs should model import cost scenarios with and without duties. ASC 330 tariff treatment complicates inventory valuation; ASC 350 goodwill assessments may require adjustment if margin compression persists.

Source: CPA Practice Advisor

Friday, February 20, 2026

Supreme Court tariff ruling due 20-25 February [US]

Decision window narrows after 100+ day wait on Trump's worldwide tariffs imposed under IEEPA. $130 billion collected to date. Lower courts ruled unlawful but stayed pending review. Companies filing protective suits at Court of International Trade to preserve refund rights. Average effective tariff rate: 16.9% (highest since 1932). Federal Reserve analysis: nearly 90% burden on US firms and consumers, averaging $1,751 per household annually. Three outcomes possible: tariffs struck but no retroactive refunds, delayed implementation for Congressional action, or refunds with unspecified timing. Administration has Section 122 fallback (15% for 150 days). Finance teams should review tariff schedules, document filings, and prepare contingency scenarios including ASC 330 inventory adjustments.

Source: CPA Practice Advisor

Thursday, February 19, 2026

[UK] MTD ITSA Live 6 April 2026. Software Deadline Urgent.

HMRC confirms Making Tax Digital for Income Tax Self Assessment mandatory from 6 April 2026 for sole traders and landlords earning over £50,000. 864,000 taxpayers must source MTD-compatible software, test systems, and train clients within seven weeks. Quarterly digital record submissions replace annual filing from day one. New points-based penalty system launches simultaneously: two missed deadlines (annual) or four (quarterly) trigger £200 penalties. PAYE tax codes updated for 2026-27. Phase 2 lowers threshold to £30,000 in April 2027. Nearly 20% of HMRC software interfaces remain untested. Action now: identify affected clients, implement software, brief on obligations.

Source: AccountingWEB

94% of US Finance Teams Understaffed for Priority Work [US]

Robert Half's February 2026 survey of 2,000 US hiring managers found only 6% of finance leaders have adequate staff for priority projects. Sixty-two per cent report skills gaps worsened year-on-year. AI-generated applications complicate hiring. Sixty per cent plan permanent hires in H1 2026. Fifty-five per cent will increase contract hiring. Fifty-seven per cent prioritise upskilling existing staff. Twenty-six per cent outsourcing compliance work. Despite shortages, 83% of managers remain confident about 2026 growth. Interim professionals and fractional CFOs filling gaps where full-time hires aren't feasible.

Source: CPA Practice Advisor

Italian Tax Police Raid KPMG Over Amazon PE Probe [IT]

Guardia di Finanza searched Amazon's Milan headquarters and KPMG offices on 12 February 2026, investigating whether Amazon maintained an undisclosed permanent establishment in Italy from 2019 to 2024. Seven Amazon managers' homes were also searched. KPMG provided tax opinions on the actions being investigated but is not itself under investigation. Amazon already paid €510 million in December 2025 to settle a separate dispute covering 2019 to 2021. Italian prosecutors are running two additional investigations into Amazon covering later periods and customs fraud involving Chinese imports.

Source: Going Concern