Who thinks it’s okay to cheat on taxes? Study looks at variables.

Wendy Gelman, instructor, School of Accounting, and Robert McGee, director, Center for Accounting, Auditing, and Tax Studies (CAATS). View complete interview to learn more about the tax evasion analysis.

Would you cheat on your taxes?

Never? Always? Sometimes?

Two members of the School of Accounting in the College of Business Administration conducted an analysis of data on individuals in six Latin American countries and the United States to determine the factors affecting this ethical issue.

“We zeroed in on a portion of a wider study that gathered information on human beliefs and values conducted on 200,000 people in 85 countries,” said Robert McGee, director, Center for Accounting, Auditing, and Tax Studies (CAATS), who collaborated on the research with Wendy Gelman, instructor, School of Accounting. “The relevant question, answered by 8,465 respondents, was would they cheat on taxes if it were possible to do so.”

The ranking of the countries from most to least opposed to tax invasion was Venezuela, Argentina, Puerto Rico, Peru, Chile, the United States, and Mexico. McGee and Gelman’s analysis revealed that:

• People in Venezuela and Argentina most oppose tax evasion. People in Mexico and the United States oppose it least.
• Women oppose tax evasion more than men do.
• People’s opposition to tax evasion increases as they get older.
• Education level does not make a difference regarding opinions about the action.
• People who attend religious services less frequently are more likely to evade taxes than people who attend more frequently.

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“Some people think it is all right not to pay taxes if the government is corrupt, or if it wastes money, or if a family situation requires the money.”

—Robert McGee, director, Center for Accounting, Auditing, and Tax Studies (CAATS), School of Accounting

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Businesses take note: multiple reasons for tax evasion exist.

Although evading taxes seems like a simple question of right versus wrong, individuals have a variety of justifications for their actions, according to McGee.

“Some people think it is all right not to pay taxes if the government is corrupt, or if it wastes money, or if a family situation requires the money,” he said.

The study, “Cheating on Taxes: A Comparative Study of Opinion in Six Latin American Countries and the USA,” will be published in the Akron Tax Law Review. McGee and Gelman have tackled the same subject in two additional studies and in a poll using students in the business school.

“We want to see if we can determine any differences in our students’ attitudes toward tax evasion based on gender, age, education, religious affiliation, and ethnic background,” Gelman said. “This really hits home to us.”

And both caution employers that, while the study does not offer a solution, “the research raises moral questions that business people may ponder,” according to McGee, and “the results of the data might influence their behavior when faced with similar situations,” according to Gelman.

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NSHMBA spotlight shines brilliantly on College of Business Administration.

Joyce J. Elam, executive dean, at the National Society of Hispanic MBAs conference during which the college received the prestigious 2008 Brillante Award for Excellence to an educational institution

Each year, the National Society of Hispanic MBAs (NSHMBA) awards the Brillante Award for Excellence to outstanding corporate and educational leaders that reflect the society’s mission to foster Hispanic leadership through graduate management education and professional development.

The 2008 Brillante Award for an educational institution went to Florida International University’s (FIU) College of Business Administration. The college was recognized at the Brillante Awards Gala, hosted by Deloitte, which capped the NSHMBA 2008 Conference and Career Expo held October 9-11, 2008, in Atlanta, Georgia.

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“Our active support of NSHMBA’s mission to enhance opportunities for Hispanics in the business world comes naturally.”

—Joyce J. Elam, executive dean, College of Business Administration

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“Our active support of NSHMBA’s mission to enhance opportunities for Hispanics in the business world comes naturally,” said Joyce J. Elam, executive dean. “Not only are we number one in the country in granting bachelor’s and master’s degrees to Hispanics according to Hispanic Outlook in Higher Education, but also our students have cultural roots from all across Central America, the Caribbean, South America, and Europe—a diversity that reflects Miami’s unique position as ‘the crossroads of The Americas.’”

Other 2008 award recipients place the college in very good company and include Rudy Beserra, vice president of Latin affairs for The Coca-Cola Company; Loida Rosario, with DePaul University; Tillie Hidalgo Lima, president and CEO of Best Upon Request Corporate, Inc.; American Express; and the National Hispanic Business Association.

Established in 1989, the Brillante Award remains the most prestigious honor granted by NSHMBA.

“The individuals and organizations awarded the Brillante Award for Excellence are truly dedicated and determined to make a significant impact in the business world and the Hispanic community,” said Lourdes Hassler, NSHMBA CEO.

NSHMBA event provides excellent networking opportunity.

Twenty-four students in the university’s graduate programs made their way to Atlanta to participate in this year’s event.

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“If you are serious about getting a job after graduate school, NSHMBA is the place to go.”

—Emmanuel Roman (BBA ’08), International MBA student

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Current International MBA (IMBA) student Emmanuel Roman (BBA ’08) saw the NSHMBA Conference and Career Expo as an excellent opportunity to connect directly with a diverse group of Fortune 500 companies.

“If you are serious about getting a job after graduate school, NSHMBA is the place to go,” he said. “I talked with recruiters looking for people at every experience level in a variety of fields—from finance to consulting to management.”

For Grace Ugalde, now enrolled in the Evening MBA program, attending NSHMBA provided a strategic step in her plan to move from a smaller company to a global organization.

Her advice to other MBA students?

“Do your research and go prepared to take full advantage of this incredible opportunity to interact directly with top companies,” she said. “It’s a great way to network with corporate recruiters so they can connect your face with your résumé—always a plus in this competitive world.”

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GM executive steers discussion toward the future of the automotive industry.

Troy A. Clark, president of General Motors (GM) North America and GM group vice president, and Joyce J. Elam, executive dean, College of Business Administration. View a video of the lecture.

It’s no exaggeration to say that the future of the American automotive industry hangs in the balance.

No one can predict the future, but Troy A. Clark, president of General Motors (GM) North America and GM group vice president, believes reinventing the automobile—and the business that supports it—is possible.

At a recent Wertheim Lecture attended by faculty, staff, students, alumni, and members of the business community, Clark addressed the audience head on, asking for a show of hands in answer to three provocative questions: How many believe the American automotive industry is suffering from a period of decline? How many believe American automakers are designing more fuel-efficient cars than some of the foreign brands? And how many have concerns about the quality and reliability of American cars?

“GM is determined to change your perceptions,” he said. “Past perceptions are just that—in the past. We are reinventing the automobile today—and our company right along with it.”

Busting myths about GM.

Clark framed his discussion around five prevalent industry myths:

1. GM and domestic car companies lag behind foreign imports in style and design.
2. Domestic quality and reliability don’t match the imports.
3. All GM makes are gas-guzzlers and all GM wants to sell are big trucks and SUVs.
4. GM cannot compete in the world market.
5. GM is not responsive enough and is not a player in the future of the global automotive industry.

He then went on to present compelling arguments and examples that debunked each myth, point by point.

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“Clark presented interesting concepts and was willing to take the discussion to the next level, tackling what are clearly tough challenges for GM and other American automakers.”

—Odalys Girado (BACC ’95), senior business director, Right Hire Staffing Solutions, Inc.

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Odalys Girado (BACC ’95), senior business director with Miami-based Right Hire Staffing Solutions, Inc. View a video with more details about the Wertheim Lecture and the value of the Wertheim Lecture series.

Odalys Girado (BACC ’95), senior business director with Miami-based Right Hire Staffing Solutions, Inc., found the lecture informative and exceptionally relevant to everyone in the audience.

“Clark presented interesting concepts and was willing to take the discussion to the next level, tackling what are clearly tough challenges for GM and other American automakers,” she said.

Lecture series hits on timely topics.

As a member of the Florida International University (FIU) Alumni Association, Girado finds the Wertheim Lecture series valuable for several reasons.

“It educates us on extremely timely topics,” she said. “What’s more, the lecture events provide an excellent opportunity to network with others in the local business community.”

The lecture took place on October 1, 2008, in the college’s Ocean Bank Auditorium. The Herbert A. Wertheim Lecture Series has brought distinguished speakers and experts in business leadership and entrepreneurship to campus since 1993.

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New initiatives increase career-readiness of undergraduates to benefit employers worldwide.

Jerry Haar, associate dean for international affairs and projects, and professor, Department of Management and International Business. View video interviews with the three professors to learn more about these innovative offerings.

“In a highly competitive global environment, all students need a competitive edge in the international marketplace,” said Jerry Haar, associate dean for international affairs and projects, and professor, Department of Management and International Business.

“We know that our marketing graduates face fierce competition for jobs—as well as having a wide variety of career options that may make it challenging for them to focus their job-search efforts,” said Kimberly Taylor, associate professor, and Macy’s Retailing Professor in the Marketing Department.

With these realities in mind, the College of Business Administration has launched programs to help ensure that employers get new employees with an added level of job preparedness, and to ease the process for students trying to find a job. It’s part of an ongoing commitment in the college to add opportunities—as well as the academic background—that give the graduates a path to success.

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“In a highly competitive global environment, all students need a competitive edge in the international marketplace.”

—Jerry Haar, associate dean for international affairs and projects, and professor, Department of Management and International Business

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Existing graduate Dual Degree Program provides model for new undergraduate offering.

Kimberly Taylor

The college has partner relationships with more than thirty institutions globally in a Dual Degree Network, which enables graduate students to complete an MBA from their home university and a Master of International Business (MIB) from Florida International University (FIU) in less time than it would take to complete the degrees sequentially.

In the new program for undergraduates, students will receive a Bachelor of Business Administration (BBA) from FIU and a second one from their home institution.

“Though requirements will differ based on the student’s home university, all students will complete at least the last thirty credit hours in residence in Miami, allowing them to experience the campus and the city, both strongly international,” Haar said.

Three marketing certificates tap into three demonstrably strong area markets.

Tiger Li

The college has offered a retail marketing and management certificate for years, recently adding one in export-import management, which Tiger Li, associate professor, manages, and in the spring, 2009, semester will offer one in sales and customer relationship management (CRM).

“We created the options based on an analysis of areas in demand in South Florida to ensure that we preparing the students to contribute to markets that we already know are strong,” Taylor said.

Each certificate includes six courses and is open to currently enrolled business students or people who already have a business degree and want to add a specialization.

Learn more.

To find out more about the Dual Degree program for undergraduates, contact Haar at Jerry.Haar@business.fiu.edu. To learn more about the marketing certificates, contact Taylor at Kimberly.Taylor@business.fiu.edu.

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Be an accountant with a badge: IRS Special Agent Experience shows students how.

Students got to discover firsthand what it’s like to be an IRS special agent during an event that brought the IRS special agent team to campus for a day’s worth of activities. Watch the video to learn more about this hands-on event.

On October 23, 2008, members of the Internal Revenue Service (IRS) Criminal Investigations (CI) unit descended on the College of Business Administration. Fortunately, they arrived not to investigate tax crimes but to host a “Special Agent Experience” day for interested accounting majors.

According to Tessie Brunken, student services assistant director for the college’s School of Accounting, the IRS conducts these combined learning-and-recruitment events at college campuses across the United States to provide students with a chance to experience a day in the life of an IRS special agent.

“We were excited to welcome the IRS special agent team to South Florida and to our campus for the first time,” she said. “Twenty-two students participated in the daylong activities, gaining insight into new ways to put their accounting degrees to work in the areas of forensic accounting and fraud investigation.”

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“The students followed the steps taken to solve a tax crime—from mock interviews to surveillance to appearing before a magistrate to secure a search warrant.”

—Antonio Gomez (MACC ’02), IRS special agent

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Students choose from four case scenarios.

IRS agent prepares student special agents to make a bust.

After a brief introduction to the IRS and the CI unit led by IRS Special Agent Joseph Perera (MACC ’04, BACC ’00, BS ’95), the students divided into four teams focused on solving different tax-related crimes: embezzlement in a casino business, fraudulent bookkeeping in a bar, tax improprieties in a tax preparer’s office, and tax identify fraud carried out via the post office.

“The students followed the steps taken to solve a tax crime—from mock interviews to surveillance to appearing before a magistrate to secure a search warrant,” said IRS Special Agent Antonio Gomez (MACC ’02), who led one of the teams through the role-playing exercise. “Others from the IRS CI team played character parts, including suspects and judges. After we set the guidelines and explained the processes, the students began their investigative work.”

Experience opens door to new career opportunities for accounting majors.

“As a graduate of the college’s Master of Accounting (MACC) program, I know it’s a rigorous curriculum that produces the kind of high-caliber students we would like to recruit for our team,” Perera said.

He describes the ideal candidate as one with a four-year business degree that includes a minimum of fifteen accounting credits plus nine credits in other areas, such as business law, tax, finance, and economics.

“We are very pleased with the outcome of this first ‘Special Agent Experience’ and hope to host a similar event again,” Brunken said. “It gives students a chance to take what they’ve learned in the classroom and apply it in a real-world scenario. Also, it opens their eyes to a broader understanding of the opportunities their degree affords them.”

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Accounting expert offers ways to turn struggling dairy industry into cash cow.

David Lavin, former associate professor, School of Accounting, gets hands-on experience during Farmer-to-Farmer dairy assignment. View video detailing Lavin’s experience and recommendations.

Facing depressed prices over the last three years, the dairy farm business in Honduras finds itself imperiled.

“Unless they determine an alternative that could be profitable enough for them to remain in the dairy business, farmers may have to abandon the market in a few years,” said Carmen Algeciras (MIB ’03, BA ’01), former director, John Ogonowski Farmer-to-Farmer (FTF) program, funded by the U.S. Agency for International Development (USAID). “Cost of production is high, but not easily determined, mostly because these dairy farmers do not keep records.”

To help reverse the threat, FTF found an ideal volunteer to evaluate current practices and devise recommendations for improved record keeping and cost analysis: David Lavin, former associate professor, School of Accounting, College of Business Administration, with practitioner accounting experience and competent Spanish.

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“To maximize milk production, dairy farmers feed their cows a concentrate that increases output but is the costliest part of their operation.”

—David Lavin, former associate professor, School of Accounting

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Lavin concentrates on concentrate.

“To maximize milk production, dairy farmers feed their cows a concentrate that increases output but is the costliest part of their operation,” Lavin said. “Without detailed records, they can’t determine the point at which they can maximize production while minimizing costs, and they can’t compare their efforts to models from other countries, such as Israel,” where he once spent a day at a dairy kibbutz.

During his two-week assignment, which coincided with a diesel fuel shortage that restricted his travel, Lavin focused on farms within easy reach of his base in San Pedro Sula. Serendipitously, its Universidad Nacional Autonoma de Honduras en el Valle de Sula may play a future role, thanks to his outreach.

Identifying ways to involve local experts and universities is a trademark of the FTF program, ensuring the sustainability of the initial efforts. Lavin recommended that under a professor’s guidance, university students in various majors, including accounting and agronomy, work with some of the farmers to measure each cow’s concentrate intake and milk output.

“I arranged for the chair of the department of accounting to attend a meeting with the owners of the farms and the technicians of the Federacion Nacional de Agricultores y Ganaderas de Honduras (FENAGH),” he said, noting the challenge of delivering his talk in Spanish. “Both sides expressed keen interest in such a project.”

Among several additional ideas, he proposed establishing a fund from which farmers could borrow to improve their farms.

“The increase in production repays the fund,” he said. “Because the demand for milk currently exceeds supply, if Sula, the company that purchases the milk, adopted this program, they would also receive the increased production from the farmers, whose profits would increase—a winning situation for all.”

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Alumna Profile: Amy Wagner (MBA ’89, BA ’87)

Alumna Profile: Amy Wagner (MBA ’89, BA ’87)
Senior Vice President, Investor Relations and Global Communications
Burger King Holdings, Inc.

View full interview with Amy Wagner (MBA ’89, BA ’87).

As part of the third freshman class at Florida International University (FIU), Amy Wagner (MBA ’89, BA ’87), senior vice president, investor relations and global communications, Burger King Holdings, Inc., remembers when the campus included five buildings. But the opportunities were always there for growth.

Attending a new university and starting its first sorority prepared her to take on the challenge two-and-a-half years ago when she joined Burger King’s executive team to help take the company public—another chance to “be part of something brand new and see it grow over time.”

Having discovered as an undergraduate focusing on public affairs that “finance was my internal calling,” she advises others to “always keep your eyes open.”

Being open to something new was true for her when she was asked to add public relations to her responsibilities at Burger King, an unexpected offer.

“You never know where life will take you,” she said. “Take advantage of the opportunities. You may surprise yourself.”

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Silver Pride induction brings alumni back to campus.

Alumnus Donald Connor and his wife Olga point out their star on the Wall of Stars during a tour of the new College of Business Administration building complex.

On November 8, 2008, 38 alumni representing the classes of 1972-1983 were inducted into the Silver Pride. More than 100 Florida International University (FIU) alumni celebrated their 25th year of graduating at the new Stadium Club. The festivities began with brunch and a welcome from FIU President Mitch Maidique. He spoke about the changes and additions to the university over the past 25 years. Business school alumni toured University Park and then joined Executive Dean Joyce J. Elam for a tour of the new College of Business Administration complex.

“It is wonderful to have our alumni come back to University Park to see how much the college has grown, not only via buildings and students but also through the addition of programs and increased international recognition,” said Michelle Joubert, assistant director of advancement and alumni relations. “Alumni who toured the building said that they would love to come back to take classes in our state-of-the-art classrooms.”

The day ended with a tailgate party and a victorious FIU football game.

College of Business Administration alumni pose after a tour of the new College of Business Administration building complex.

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Entrepreneurship Hall of Fame to celebrate its ten-year anniversary.

Mark your calendar for the ten-year celebration of Florida International University’s (FIU) Entrepreneurship Hall of Fame.
Fontainebleau Hotel on Miami Beach
Saturday, May 16, 2009
Attire: black tie
6:30 p.m.: sponsor reception
7:00 p.m.: guest reception and silent auction
8:00–11:00 p.m.: dinner, program, and dancing

Together with its title sponsor, SunTrust Bank, Miami, the College of Business Administration will mark the tenth anniversary of the Entrepreneurship Hall of Fame by hosting an international masquerade ball and auction. Ten years of honorees will be celebrated, budding entrepreneurs will be recognized, and the college’s own executive dean, Joyce J. Elam, will be inducted as the South Florida Entrepreneur of the Year. Please join us for this very special anniversary event.

If you are interested in sponsoring the event or would like to purchase a table call Monique Catoggio at 305.348.4227 or e-mail monique.catoggio@business.fiu.edu.

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Support your alma mater!

Manuel Dieguez

Richard M. Hodgetts

The College of Business Administration is raising money to endow the following scholarships:

Manuel Dieguez Student Support Endowment

The School of Accounting has established the Manuel Dieguez Student Support Endowment Fund in honor of his 32 years of service. As a CPA himself, Manuel Dieguez has been committed to assuring that students have the tools to enter the profession. We are celebrating his teaching legacy by creating a scholarship endowment for accounting students. If his tutelage or advice has touched your life, please make a donation today. Any amount is welcome.

Richard M. Hodgetts Memorial Scholarship

Join us in honoring the memory of Richard M. Hodgetts, an accomplished Florida International University professor and prolific author who taught for more than 25 years in South Florida, including in the college’s Department of Management and International Business. Throughout his career he won many awards and touched the lives of many students. The scholarship will benefit juniors and seniors in the Department of Management and International Business. Make a pledge today!

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