Tax planning is a key tool that allows businesses and individuals to optimize their tax burden within the framework of legality. Beyond regulatory compliance, this process offers a series of strategic benefits that strengthen finances and ensure efficient use of resources. In an environment where tax regulations are constantly changing, having an appropriate tax strategy is not just an advantage but a necessity.

What is Tax Planning?

Tax planning is the set of strategies and measures designed to reduce tax liability by taking advantage of the fiscal benefits provided by law. This involves identifying opportunities such as deductions, exemptions, and tax credits, as well as structuring financial and accounting operations to optimize tax impact.

Main Benefits of Tax Planning

1. Reduction of Tax Costs: One of the greatest benefits of tax planning is the ability to lower the amount of taxes to be paid without stepping outside the legal framework. This allows for the release of resources that can be used in other strategic areas of the business.

2. Prevention of Legal Risks: Properly complying with tax regulations helps avoid penalties, fines, or legal proceedings. A well-designed tax strategy reduces the risk of errors and ensures peace of mind during audits or inspections.

3. Optimization of Liquidity: Strategically planning tax payments helps improve corporate cash flow management, ensuring resources are available when they are most needed.

4. Utilization of Tax Incentives: Many tax laws offer benefits such as tax credits or specific deductions. Tax planning identifies and maximizes these opportunities to gain the greatest advantage possible.

5. Better Financial Decision-Making: By anticipating the tax implications of business decisions, companies can plan their investments and operations more confidently, aligning them with their strategic objectives.

How Can HLB El Salvador Help You?

At HLB El Salvador, we design customized tax strategies to ensure that your company meets its tax obligations while maximizing the benefits offered by current regulations. Our services include:

• Detailed Tax Analysis: Identification of tax-saving opportunities.
• Customized Strategies: Development of a tax plan tailored to your needs.
• Ongoing Advisory Services: Resolution of doubts and updates on tax regulations.

Tax planning is not a luxury; it is an essential strategy for any company seeking to optimize its tax burden and strengthen its financial position. At HLB El Salvador, our team of experts is ready to help you achieve your tax goals efficiently and securely.

Contact us to design the ideal tax strategy for your business.

📧 info@hlb.com.sv | ☎️ (503) 2133-3999 | www.hlb.com.sv

Global business leaders are potentially facing an execution challenge in order to ensure future success in the coming decade. That is one of the key findings from HLB’s Inaugural Survey of Business Leaders: The Execution Challenge for the New Decade. To gain insights in the concerns and priorities of business leaders in 2020, HLB surveyed 368 clients and relations in C-suite positions across 5 continents. 

While business leaders are aware of the characteristics of business models most likely to be successful in the future, when asked what they are doing to grow in the next 12 months and what areas of the business they want to strengthen, business leaders seemed more concerned with the day-to-day.

Commenting on the findings, Marco Donzelli, HLB’s Global CEO, says: “In times of profound continued uncertainty, it comes as no surprise that business leaders are cautious about what is ahead. This new decade will see further accelerated change in terms of technology, business models and growth markets. But it will be those leaders that innovate and adapt quickly that will reap the most rewards.”

The economy is rocky, but we’ll be fine

It comes as no surprise is that economic uncertainty is a top concern for business leaders, with 46% predicting global economic growth to decline in 2020. In addition to being troubled by the state of the economy, half of respondents cite geopolitical uncertainty as a worry. However, when it comes to their own businesses, 87% of respondents have confidence (58% somewhat confident, 29% very confident) in their ability to grow revenue over the next twelve months. The confidence could be in response to the fact that while business leaders are concerned about geopolitical uncertainty, 48% believe that market upheaval will create new opportunities. Business leaders are relying on key countries to drive their growth forward with the USA, Germany and China ranked among the most important (41%, 23% and 17% respectively).

New business models for a new decade

There appears to be a degree of consensus of what winning business models look like – with progressive leaders setting their sights on more mobile, flexible and cloud-enabled business models better suited to today’s business environment. However, much of the activity business leaders are planning over the next twelve months is incremental, with 59% focused on boosting operational effectiveness. Our survey discovered that leaders are primarily focused on improving existing processes and focusing inward than preparing for the challenges of the 2020’s.

Readiness to adapt and thrive in turbulent times

Turbulence in the economic and global trade environment requires business leaders to adapt to new realities and be quicker to respond. Our respondents are strengthening different aspects of their business in order to boost agility. 42% of leaders are looking to strengthen their ability to innovate with 31% seeking to improve their digital capabilities. While these are priorities, the improvements they plan to implement will take place incrementally – no doubt in part due to the uncertainty of doing business in an ever changing and unpredictable global environment.  

Harnessing technologies to succeed in the 2020s

Business leaders are now well aware of the role of new technology in transforming the way firms do business. Technologies once viewed as disruptive have become important drivers of success. Business leaders regard the Cloud (48%) and AI (49%) as the technologies most important to ensure future success. Technology will be a huge driver in overcoming cross-border business challenges, with 56% of leaders planning to deploy its use in the next 12 months.

The Execution Challenge

The results of our survey found that the ability to adapt will be key to future success in the coming decade. However, our experts’ question whether business leaders are focusing on the right areas in order to secure a competitive advantage in the 2020s. Firms may be too focused on internal and incremental operational improvements and cost reduction, as opposed to strengthening consumer insights. There is a risk that businesses will be left behind by the pace of change, as technological progress accelerates. Continuous innovation, informed by finely-tuned customer insight, will be critical to ensure competitiveness and profitability in the 2020s. 

About HLB

HLB International is a global network of independent advisory and accounting firms. Formed in 1969, we service clients through our member firms in 153 countries, with 27,485 partners and staff in 745 offices worldwide.

Learn more about us and tell us what matters to you by visiting www.hlb.global

HLB refers to the HLB International network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.hlb.global/legal for further details.

 About our research

Between September and November 2019, HLB has collected 368 survey responses from business leaders across 55 countries and a range of industry backgrounds. Responses were collected via an online survey tool or telephone interview. The research sample was selected and controlled via HLB firms their CRM data.

A copy of the full report can be found on www.hlb.global/surveyofbusinessleaders Note that not all figures in this report sum up to 100% as a result of rounding percentages, excluding neutral responses or when respondents could choose more than one answer. The base for all figures is 368 (all respondents) unless otherwise indicated.

Read more:

HLB Global Annual Review 2019

The European Union (EU) on Tuesday reintroduced Panama to its blacklist for not complying with global criteria for fiscal transparency, a setback for the Central American country in its goal of erasing its image of tax haven.

In addition to Panama, the EU finance ministers also blacklisted the British overseas territory of the Cayman Islands, a decision interpreted as a “warning” to the post-British United Kingdom.

“These countries or territories have not complied, within the agreed period, with the fiscal reforms to which they had committed themselves before the EU,” the EU Council said in a statement, which also added to Palau and Seychelles.

In December 2017, the EU adopted its first list of paradises in response to scandals such as the Panama Papers, which revealed the creation of opaque societies to supposedly evade taxes worldwide.

Panama represents the most emblematic case. In December 2017, the EU included it in its first “blacklist” and, after commitments by the Panamanian government, moved it to the “gray list”, which came out in March 2019. Now he returns to the blacklist for not having achieved “at least” the “largely conforming” rating of the Global Forum on Fiscal Transparency of the Organization for Economic Cooperation and Development.

The decision represents a jug of cold water for the Panamanian government of Laurentino Cortizo, who since his coming to power in July tries to change the image of his country and appointed even at the end of 2019 a chief prosecutor expert in financial crimes.

Cayman Islands

Cayman Islands on Tuesday became the first British overseas territory to go to the blacklist, “a warning for the United Kingdom” in the post-relations relationship with the EU, according to the conservative MEP Markus Ferber.

Europeans fear that the United Kingdom will lower EU tax rules to gain a competitive economic advantage over the block. Negotiations on the future relationship between the two should begin in March and end by the end of 2020. Specifically, the EU Council, which represents the countries of the bloc, criticizes this British territory “for not having appropriate measures in relation to the economic substance in the field of collective investment vehicles”.

With the inclusion of Cayman Islands and Panama, as well as Palau and Seychelles, the black list of non-cooperative jurisdictions, which already had American Samoa, Fiji, Guam, Oman, Samoa, Trinidad and Tobago, the US Virgin Islands and Vanuatu , rises to 12. Oenegé Oxfam congratulated the inclusion of Panama, Seychelles and Cayman Islands on the blacklist, but regretted that the EU “free” “more harmful tax havens” such as Bahamas or that it still does not include block jurisdictions.

The Europeans in fact decided to withdraw 16 countries or territories from their “gray list” of commitment monitoring, including the Caribbean Antigua and Barbuda, Bahamas, Barbados, Curacao and Saint Kitts and Nevis, as well as Belize.

The EU granted an extension to 12 of those present on the gray list, especially Turkey, an important economic and migration control partner, which it gave until the end of the year for the exchange of fiscal information with the countries of the bloc.

The sanctions provided for non-cooperating countries are limited to the eventual freezing of European funds, but the EU calls on the different countries in the block to adopt national measures by January 2021 to press.

“The credibility of the blacklist must be strengthened to seriously fight against tax evasion,” said environmental MP Damien Carême, advocating a “more independent and transparent process, with really dissuasive sanctions.”

In October 2015, as part of the final BEPS package, the OECD published reports on Action 4 (Limit Basic Erosion Involving Interest Deductions and Other Financial Payments) and Actions 8-10 (Alignment of the Results of transfer pricing with value creation). These reports entrusted follow-up work on aspects of transfer pricing of financial transactions.

These reports entrusted follow-up work on aspects of transfer pricing of financial transactions.

The report published today is significant because it is the first time that the OECD Transfer Fixing Guidelines include guidance on aspects of transfer pricing of financial transactions, which will contribute to consistency in the interpretation of the duration of the principle arm and help avoid transfer pricing disputes and double taxation.

The 2015 BEPS Action Plan reports on Action 4 related to the limitation of the erosion of the base that implies interest deductions and other financial payments; and actions 8-10 on the alignment of transfer pricing results with the creation of value and mandatory follow-up work on transfer pricing aspects of financial transactions.

In particular, Action 4 of The BEPS Action Plan called for the development of: “… transfer pricing guide … with respect to the price of financial transactions of related parties, including financial and performance guarantees, derivatives ( including internal derivatives used in internal banks), and captives and other insurance arrangements. “

Under these mandates, the Fiscal Affairs Committee produced a draft consensus not agreed on financial transactions in July 2018. The draft debate aimed to clarify the application of the principles included in the 2017 edition of the Transfer Pricing Guidelines of the OECD.

In particular, the delineation analysis required in Chapter I, to financial transactions and also provided guidance with specific issues related to the pricing of loans, cash funds, financial guarantees and captive insurance.

The guide contained in this report takes into account comments received in response to the public.

This guide is important because it is the first time that the guidelines are updated to include guidance on transfer pricing aspects of financial transactions that should contribute to consistency in the application of transfer pricing and thus help avoid price disputes.

Transfer and double taxes. Sections A through E of this report will be included in the Guidelines as Chapter X. The guidance in Section F of this report will be added to Section D.1.2.1 in Chapter I of the Guidelines, immediately after paragraph 1106.

In addition, this report describes the transfer pricing aspects of financial transactions, including a series of examples to illustrate the principles discussed. Section B provides guidance on the application of the principles contained in Section D.1 of Chapter I of the Guidelines for financial transactions.

In particular, Section B.1 of this report explains how the precise delineation analysis of Chapter I applies to the capital structure of an MNE within an MNE group and also clarifies that the guidance included in that section does not prevent countries implement approaches to address capital structure and interest deduction under their national legislation.

Section B.2, on the other hand, describes the economically relevant characteristics that inform the analysis of the terms and conditions of financial transactions. Sections C, D and E of this report address specific issues related to the price of financial transactions, for example, treasury functions, intra-group loans, cash pooling, coverage, guarantees and captive insurance.

The analysis elaborates both the precise delimitation and the price of the controlled financial transactions. Finally, Section F provides guidance on how to determine a risk-free rate of return and an adjusted rate for return risk.

HLB El Salvador will be your strategic partner for tax advice on transfer pricing and related transactions.

Read more:

Guía de OCDE sobre Operaciones Financieras

As of today, February 7, 2020, due to the amendment to Legislative Decree No. 542, Article 100 of the Municipal Code there will be changes in the registration of documents, below we detail it:

FOR USERS OF THE ROOT AND MORTGAGE PROPERTY REGISTRY:

The presentation of the ORIGINAL MUNICIPAL SOLVENCY of the property to which they refer will be required for the registration of documents of transfer of Domain or lien.

Such solvency must be in force at the time of presentation of the legal instrument in the registry.

FOR THE USERS OF THE TRADE REGISTRATION:

It will be a requirement for the registration of the Deeds of Constitution of Mercantile Societies, to present the SOLVENCY OF MUNICIPAL TAXES OF EACH PARTNER THAT CONSTITUTES IT, according to the address of each partner, as it has been consigned in the corresponding deed.

For the registration of the Deeds of Modification of the Social Pact and Dissolution Agreements, it will be a requirement to present the SOLVENCY OF MUNICIPAL TAXES OF THE COMPANY THAT IS MODIFIED OR DISSOLVED, according to the address established in its social pact. This solvency may be original or a copy certified by a Notary, and be valid at the time of presentation of the legal instrument in the respective registry.

What does the new decade have in store for you and your business? The 2010s were a period of political and economic upheaval. Business has been troubled by unforeseen geopolitical, social and trade developments, and unsettled by rapid technological change. Will the 2020s bring more of the same? Or are boom times on the way?

As a new decade dawns, we sought out insight into how business leaders see the future through HLB’s Inaugural Survey of Business Leaders.

We’ve asked 368 business leaders in five continents about their concerns and their priorities for the coming 12 months. What issues will define the coming year? What new business opportunities excite them? And what will their priorities be in 2020?

Their answers are illuminating, and surprising.

Business thrives on certainty, and given the upheavals of recent years, it’s no surprise that leaders are looking ahead to the new decade with trepidation – at least, when it comes to the economy.

However, when it comes to discussing prospects for their own firms, business leaders are remarkably upbeat. While only 16% of leaders feel that global economic growth rates are likely to increase in 2020, 87% have confidence (58% somewhat confident, 29% very confident) in their ability to grow their businesses in the next 12 months.

Are business leaders right to be so blasé?

Leaders acknowledge that businesses will have to adopt more flexible models if they are to succeed in the 2020s. There’s a consensus among business leaders that companies will have to change – and change radically – if they are to keep pace with technological progress.

Despite this, our survey reveals that business leaders are in no rush to update existing operational models. In fact, when asked their priority for the year ahead, more leaders choose ‘operational effectiveness’ than any other option.

Changes to business models will be driven primarily by advances in technology. Though business leaders recognise the revolutionary implications of new technology, ‘digital capabilities’ ranks only third – behind ‘innovation’ and ‘operational effectiveness’ – in leaders’ priorities. Given the extraordinary potential of these technologies, should business leaders be doing more to ensure they are not caught out? And why the lack of urgency?

Do business leaders underestimate the extent to which their own firms will have to change in order to keep pace?

To get the full picture, join HLB for the global launch of its inaugural survey of business leaders, The Execution Challenge for the Next Decade on 16 January 2020.

Clic here: https://www.hlb.global/sign-up-live-stream/

Through a Special Law to Facilitate Access to Credit, parliamentarians seek to reduce barriers to processing a bank loan for productive activities.  

This Wednesday, the deputies that make up the Financial Commission continued with the study of the different files that contain initiatives to create the Special Law to Facilitate Access to Credit, which seeks to facilitate the formal financing of all the productive sectors of the country, from the decrease of the requirements established by the banking entities.

The purpose of this regulation is to reduce some requirements to facilitate access to credit in the banking sector, as well as to establish the conditions for the granting of credits and financing for productive and commercial activities, taking into account that the requirements of the regulation are not an obstacle for access to credit.

These provisions should be considered in the policies of financial institutions, regardless of whether or not they are subject to the regulation issued by the BCR.

The president of that legislative body, Francisco Merino (PCN), indicated the importance of having a regulatory body that allows to combat informal financing: “There is an immense majority of Salvadorans who fail to access productive credit because they do not meet the parameters that establishes banking, even if they present payment guarantees. Indirectly they are being forced to go to the black market”.

In this regard, the approach of Deputy Francis Zablah (GANA) agrees, who believes that through formal banking, usury practices could be combated: “Usury is more in the informal sector and the money laundering law should be revised, Because these people evade taxes. But this is because people do not have access to loans with banks, and meeting the requirements they ask for is impossible”.

While it is necessary to have such a body of law, Deputy Rodolfo Martínez (FMLN), said that some requirements that are already contemplated in the Banking Law cannot be eliminated, because otherwise tax evasion and evasion would be encouraged. : The intention to eliminate some requirements is good, however, we must be careful to avoid that we are indirectly promoting elution”.

On another issue, parliamentarians endorsed the quarterly report corresponding to the months of August, September and October of this year, which will be put to the plenary vote in the plenary on Thursday, November 28.

Likewise, they agreed to continue in the next days with the study of the different initiatives of the Special Law to Facilitate Access to Credit and the proposals for amendments to the Law Against Usury.

The fifth generation of mobile communications is the first in history that breaks into much of the world simultaneously and with a variety of devices on the market, which will allow a vertiginous penetration for which, however, there is still no clear one business model. 

This was revealed on Tuesday in the first forum organized by the 5G National Observatory (which coincides with its first anniversary), closed by the acting Minister of Economy and Business, Nadia Calviño, and about a technology that allows communications with Gigantic bandwidth and minute latencies.

The Vice President of Qualcomm Technology in Europe, Dino Flore, explained that the key to this technology is that it will allow “everything and everyone to be intelligently interconnected”, because objects can make intelligent decisions thanks to their connection to the cloud, artificial intelligence and massive data management.

While 4G started in a few countries, 5G is making its way in many places simultaneously and “the good news – according to Flore – is that Europe is at the center of everything”, although among the pioneers South Korea stands out, where 13% Traffic is already on this new technology and mobile prices are already comparable with those of the previous generation. Although the most “remarkable”, in his opinion, is that while in other technological transitions the standards and networks first arrived and finally the terminals, this time there are already more than 150 devices on the market or in development, which will help to its rapid penetration.

It will also help the generalization of unlimited data rates, such as those offered by Vodafone in Spain, where in less than half a year it has been made with 1.3 million customers, said the leader of the world leader in 5G chips. The Secretary of State for Digital Advance, Francisco Polo, has agreed that Spain can be one of the winning countries of the fourth industrial revolution, “which will catalyze 5G, something that will depend on the talent you can believe and retain and the how digitalization is “governed”.

Federico Ruiz, responsible for the National Observatory of 5G, stressed that this revolution will take place in a “very mature” sector in which it will compete with “very aggressive rates”, which is very attractive for the consumer, but complicated to face for The suppliers have agreed to highlight several industry representatives.

Thus, the general director of Telecommunications and Information Technology, Roberto Sánchez, has argued that the full deployment of 5G networks will require “an investment capacity that is not in the hands of operators.”

The head of Innovation and Digital Transformation of GSMA, Javier Albares, has added that the deployment of a true 5G network in Europe will cost around 500,000 million euros, double the investment capacity of European operators. “There is a gap of 250,000 million and we have to start talking about this,” he warned. “If the future is a future of unlimited data, great coverage and low price, we all understand that it is a fairly difficult model to attract investors.”

 

Years ago it was mandatory for companies to have two advisors. However, today things have evolved.

The taxpayers or “taxpayers”, as they are kindly called by the authorities of the Public Treasury, make up a heterogeneous universe that goes from wage earners, through informal merchants, to a restless class of citizens called “businessmen” ” Contrary to what is commonly believed, more than 80% of the income of the public estate rests on the latter, which they pay in the form of taxes, fees and special contributions.

Think of a tax burden, whatever it is, and it is certain that an entrepreneur is out there, somewhere, working more than a third of your effective time, trying to generate enough income to be able to pay it. And is that the Treasury does not joke when wanting to collect “what corresponds”.

The employer always keeps in mind that his partnership with the tax administration goes more or less like this: if you start a business and have profits, once you have deducted wages, effort, risks, the development of skills on competition and the sweat of work honest (called “costs and expenses” accounting; well, why not say it, including in the subtraction of profits those derived from the payment of “extra lege taxes” charged by criminal organizations to enter their territories), of the remaining profit (“net income”), the treasury passes us the hat to request its 30% participation.

What does a tax advisor do?

Things get worse when the innocent taxpayer does not have a tax advisor. On this point, we must first answer the simplest of the questions: what does a tax advisor do? It may be worth explaining first what it is not. The tax advisor is not a teacher on how to avoid taxes.

It is not an agent of the “nostra” thing that colludes with “malandrines”, disguised as businessmen to defraud public finances. Despite the bad reputation – good or badly deserved – on the part of the union, a tax advisor develops within the companies a role that goes far beyond seeing how he does to serve his client with the biggest spoon, to the detriment of the collective It would be worth noting that the cartoony vision that makes the businessman look so petty capitalist, like Rico McPato, does not happen to be that: a cartoon that is rarely fulfilled in reality.

On the backs of the thousands of entrepreneurs, small medium and large, who make up the national productive shed, rest the economic functionality of the State, the payment of its capital investments that translate into hospitals, schools, central power generators, airports and ports; as well as supporting your current expenses, such as the payment of a nurse, a doctor, a teacher and a police officer. It would not hurt that when you see a businessman you extend your helping hand and say: “Thank you for everything.”

So the role of the tax advisor is much less obscure than that apocalyptic vision of evading taxes. Typically, our function is much more proactive. The tax advisor, no matter how good, cannot fall asleep on his laurels, we have to be constantly studying the different modifications to the tax laws, which our dear deputies apparently do not like to let rest.

The tax advisor must transfer his knowledge about the multiple legal reforms, in a timely manner, to his clients, in order to avoid that these, imbued as they are in their businesses, do not commit errors of interpretation that can lead to an incorrect application of the legislation in force, which ends up causing worries, which result in applications of fines, complementary taxes and interest.

The idea is not to pay less

And it is that a single fine that we avoid, with an advice provided on time, more than pays, and far above, the fees that we could have billed. On the other hand, a tax advisor who boasts of being one, studies the sentences issued by the Court of Appeals for Internal and Customs Taxes; as well as by the Chamber, Chambers and Courts of Administrative Litigation, which establish “new criteria currents”, which, in turn, set the pattern of taxpayers’ fiscal behavior.

There are cases in which a known and applied criterion on time provides taxpayers with a clear guide on the erroneous application of a tax rule, which can be translated into a tax saved, for being “overpaying” a tax burden due to a bad rule interpreted; or, on the contrary, the need to make a necessary fiscal correction is revealed, by being wrongly applying a rule that can result in an illegitimately lower payment of a tax. In case it is not known, let it be known: tax adjustments can be up or down.

The central idea of ​​a tax advice is not to pay “less” taxes. In innumerable occasions, a tax advisor can advise in the sense that more should be paid. The tax advisor is married to ethics and the correct application of tax rules, and not to the widespread idea that it is used to carry bags of money in a chartered Cessna for the Bahamas. The cost of not having a tax advisor that illustrates the accounting team of a taxpayer (or the taxpayer himself, in case of not having one), can be very high.

I have known many companies that have gone bankrupt because of an incorrect application of tax regulations, which, like a snowball, have generated monumental amounts of complementary taxes, fines and interest; and why not say it, many times, jail sentences, which have been a negative derivative of not having the right vision about that intricate world shaped by tax laws. The temptation of entrepreneurs is to cut costs. Understandable But the next time you decide to save on something, other than dispensing with your tax advisor.

Teaching about digital, technological or computer law, as it is called in different latitudes, in the 90s was something that was expected to come, but it was not taught in law schools. However, today, law schools have seen the need to teach more about it, and are worrying to show the world about this not new legal branch, if not a necessary subject in the legal science student’s portfolio.

But what about the lawyer who is not millennial, much less centennials ?, or does not belong to any generation, which is not yet born. We are terrified to think how to face the changes? How should we face our role? To do this, I must begin by saying that the Fourth Industrial Revolution, or Industry 4.0, as it is also called, is putting us face to face with all the sciences and in itself with the whole world, and legal sciences were not going to be the exception, since it is in constant transformation. Advocacy does not escape it, we must evolve and adapt to new realities; with the dynamics that this new stage entails in which our lives pass and the daily work of those who profess this career.

That is why the legal coroner cannot live behind the backs of technology, because it has been shaping a new modality of relations between citizens, companies and institutions through the evolution of recent times. And who plays a more than important role in this technological revolution is the innovation that has allowed this evolution to continue without problems. New technologies have helped professionals to challenge the limits of time and space to meet the needs of the sector.

The lawyer begins his training with a saying: “Lawyer who does not study, is every day less lawyer.” Eduardo Couture, author of the well-known “Decalogue of the lawyer”, was not wrong to say so. Therefore, it is appropriate to say that the lawyer who does not apply science becomes less and less a lawyer. We are obliged to continue studying throughout life, so as not to get stuck and be agents of change.

Law adaptable to the future

The role of the legal coroner was not going to stop either. Faced with the 4th Industrial Revolution that beset us, the lawyer must be prepared to understand that if the law does not adapt to the future, the future can eat it. In the past, as in the present, we live surrounded by legal situations, and in the future, although we do not know, they will continue to exist. In this new era, the Law cannot wait for modifications from now on, in all areas.

The lawyer of the present has to know how to apply a digital contract or face the “know how” of the internet of things. It must, therefore, know about the successive tract in computer matters, how the consumer reacts to a mass act through electronic commerce, react to a computer crime, as well as apply Habeas Data. The lawyer must prepare to learn about the Block Chain and change its traditional way of working to programs that allow it to handle information at the distance of a click.

Our role and attitude towards the digital age is decisive, we must be very attentive when understanding legal informatics to take the necessary measures and gradually leave the paper culture. Everything is as we say, a matter of order. I am excited to think that the “digital lawyer”, as many authors call the lawyer of the future, can come to present his customary allegations in front of an online court. In fact, El Salvador is already making and modifying laws to adapt them to the computer world.

Teaching about digital, technological or computer law, as it is called in different latitudes, in the 90s was something that was expected to come, but it was not taught in law schools. However, today, law schools have seen the need to teach more about it, and are worrying to show the world about this not new legal branch, if not a necessary subject in the legal science student’s portfolio.

But what about the lawyer who is not millennial, much less centennials ?, or does not belong to any generation, which is not yet born. We are terrified to think how to face the changes? How should we face our role? To do this, I must begin by saying that the Fourth Industrial Revolution, or Industry 4.0, as it is also called, is putting us face to face with all the sciences and in itself with the whole world, and legal sciences were not going to be the exception, since it is in constant transformation. Advocacy does not escape it, we must evolve and adapt to new realities; with the dynamics that this new stage entails in which our lives pass and the daily work of those who profess this career.

That is why the legal coroner cannot live behind the backs of technology, because it has been shaping a new modality of relations between citizens, companies and institutions through the evolution of recent times. And who plays a more than important role in this technological revolution is the innovation that has allowed this evolution to continue without problems. New technologies have helped professionals to challenge the limits of time and space to meet the needs of the sector.

The lawyer begins his training with a saying: “Lawyer who does not study, is every day less lawyer.” Eduardo Couture, author of the well-known “Decalogue of the lawyer”, was not wrong to say so. Therefore, it is appropriate to say that the lawyer who does not apply science becomes less and less a lawyer. We are obliged to continue studying throughout life, so as not to get stuck and be agents of change.

Law adaptable to the future

The role of the legal coroner was not going to stop either. Faced with the 4th Industrial Revolution that beset us, the lawyer must be prepared to understand that if the law does not adapt to the future, the future can eat it. In the past, as in the present, we live surrounded by legal situations, and in the future, although we do not know, they will continue to exist. In this new era, the Law cannot wait for modifications from now on, in all areas.

The lawyer of the present has to know how to apply a digital contract or face the “know how” of the internet of things. It must, therefore, know about the successive tract in computer matters, how the consumer reacts to a mass act through electronic commerce, react to a computer crime, as well as apply Habeas Data. The lawyer must prepare to learn about the Block Chain and change its traditional way of working to programs that allow it to handle information at the distance of a click.

Our role and attitude towards the digital age is decisive, we must be very attentive when understanding legal informatics to take the necessary measures and gradually leave the paper culture. Everything is as we say, a matter of order. I am excited to think that the “digital lawyer”, as many authors call the lawyer of the future, can come to present his customary allegations in front of an online court. In fact, El Salvador is already making and modifying laws to adapt them to the computer world.

When there are times of recession in the economies, globally, that ends up affecting companies. Difficult situations such as unemployment, high levels of indebtedness, low salaries, an environment of corruption or situations of economic crisis in general, are conducive for some people to choose to obtain economic benefits through illicit acts, leaving aside moral, ethical and ethical values. professionals to achieve them.

Different forms of fraud constitute a phenomenon that affects companies of any nature or size, whether public or private. It causes heavy economic losses, which can cause serious financial and labor problems. Therefore, it is of great importance to identify those areas of the company that are most susceptible to this type of fraud, and place the appropriate keys or internal control systems that allow them to minimize and prevent these events from occurring.

The forensic audit arises from the need of entities for specialized investigation and detection of crimes inside, in addition to serving as control and prevention. Even in judicial proceedings, it allows judges to have more auxiliary elements that help their judgment to impart justice, as it provides a clearer picture of the facts. Although conducting a forensic audit may seem in the eyes of businessmen as “one more expense out of pocket”, if we see it from a preventive point of view it can bring many more benefits and savings, if applied to the areas of greatest risk.

As a preventive tool

Although many see the forensic audit as a work to prevent and study acts of corruption, since most of the results are directed to the courts of justice (especially criminal), it should be noted that the forensic audit can be oriented to the investigation of malicious acts at the financial level of a company, the government or any organization that manages resources.

However, forensic auditing is much more comprehensive and useful as a specialized tool to detect and prevent financial crimes, such as fraud, corruption, money laundering, among others. The forensic audit, as a preventive tool, helps to recognize the areas that are most at risk of suffering some type of property crime, because although there are internal controls, these can be violated by the members of the organization (human factor), who take advantage and take advantage of the weaknesses and weaknesses of such controls.

It is necessary to be periodically evaluating the intervention of the human factor in the established procedures and controls, to combat the new fraud mechanisms within the entity. It is also convenient to establish a code of conduct among internal collaborators to strengthen the identity and philosophy of the company, and create a moral commitment. The preventive forensic audit also provides advice so that the same institution can detect and face some type of non-lawful act. For this, the implementation and strengthening of internal operational, administrative, fiscal and accounting controls in all organizations is necessary.

Currently the way in which business is done has changed thanks to technology. The way in which brands relate to consumers, purchasing dynamics, how to serve customers and production processes throughout the entire value chain of companies are now more effective.   

Artificial intelligence

One of the most important advances for digital advertising is having the ability to create personalized campaigns with which you can generate more interaction with users.

Virtual and augmented reality

This is one of the most effective strategies for brands is to resort to good storytelling, since this way you can create much more immersive and emotionally strong experiences.  

Data governance tools

Data governance refers to control in the entry of valid data according to established standards and criteria, to manage, improve and leverage information.

Chatbots

Although in recent years we have met chatbots, these artificial intelligence tools for social networks and platforms aimed at customer service, will soon be something much more common, becoming an integrated element within the video formats. You can take advantage of them to systematize recurring processes.  

Voice interaction

Voice communication is the favorite of users. Some brands like Uber have already dabbled on this digital path that manages to generate greater engagement with their users, and therefore achieve more sales. Predictive and predictive analysis tools Predictive analysis consists of analyzing the data of historical sets to predict and predict future results, in addition to preparing for future actions. 

Predictive and predictive analysis tools

Predictive analysis consists of analyzing the data of historical sets to predict and predict future results, in addition to preparing for future actions. Prescriptive tools can be used to test alternative solutions and select the one that gives you the best performance. Using predictive analysis, companies can prescribe the right management remedy to improve results.