The role of economic experts in judicial settings is crucial for clarifying financial and economic matters that require specialized knowledge. Our involvement ranges from assessing damages to analyzing tax crimes, making us a key element in enabling courts to make fair and well-founded decisions. Below, we outline the main areas of activity and their impact on dispute resolution.
- Calculation of Economic Damages and Losses
One of the most common roles of an economic expert is to calculate the damages and losses suffered by a party due to the actions or breaches of another party. This calculation may include:
- Actual damages: Assessment of the direct costs incurred by the affected party.
- Loss of profits: Estimation of the earnings the affected party failed to obtain.
The goal of this work is to objectively quantify the economic impact caused, providing the judge with a well-supported figure that can be used to determine appropriate compensation.
- Analysis of Economic and Tax Crimes
The field of economic and tax crimes is particularly complex, as it requires a meticulous interpretation of financial transactions, financial statements, and compliance with tax regulations. In this area, as economic experts, we can:
- Detect irregularities in financial transactions, identifying potential fraud.
- Assess the tax compliance of a company or individual, identifying tax evasion or avoidance practices.
The participation of an expert in cases of fraud, money laundering, or tax evasion is essential, as their technical analysis helps clarify whether illicit intentions existed and quantify the damage caused to the treasury or third parties.
- Analysis of Economic, Productive, and Organizational Causes in Workforce Restructuring
In labor proceedings, economic experts play a vital role in providing evidence for the legal grounds to carry out workforce restructuring processes. This analysis helps determine whether a company is truly facing difficulties that justify such measures. The expert’s responsibilities include:
- Analyzing the company’s financial situation, comparing it with previous periods, and assessing the feasibility of maintaining employment positions.
- Reviewing financial statements and economic projections to justify labor adjustments.
These reports become critical in labor disputes, where the objectivity of financial data can tip the balance regarding the validity of dismissals due to economic reasons.
- Forensic Audits in Cases of Fraud and Accounting Manipulation
Forensic expertise has become increasingly essential in cases involving suspected accounting manipulation or financial fraud. Forensic audits enable:
- Identification and documentation of fraudulent activities, such as the concealment of liabilities or overstatement of assets.
- Reconstruction of accounting records to detect suspicious transactions.
This in-depth analysis provides clear evidence of whether a company or individual has manipulated their accounting records, supporting fair judicial decisions and preventing future fraud.
- Valuation of Companies and Assets in Commercial Disputes
In commercial disputes, such as business dissolutions or company sales, asset valuation becomes a central issue. In this context, the economic expert carries out:
- Valuation of companies or specific assets, using recognized methodologies such as discounted cash flows, market multiples, and others.
- Analysis of internal finances and projections to determine fair market value.
The expert’s work assists the parties in reaching equitable and well-founded agreements, avoiding prolonged conflicts that could negatively affect the operation of the involved businesses.
The expert’s experience in presenting and defending their report in court is nearly as important as the report’s preparation itself. During the ratification phase, experts have the opportunity to defend and explain their conclusions before the judge and the involved parties, ensuring that their analysis is fully understood. This process requires a combination of technical and communication skills, as the expert must not only have a strong command of their area of expertise but also the ability to present and defend their findings clearly, concisely, and in a way that is accessible to non-specialists.
In conclusion, the role of the economic expert not only brings clarity to complex situations but also facilitates well-grounded agreements and decisions, strengthening justice and ensuring transparency in every judicial process in which they participate.
At UHY Fay & Co, we have a team of expert specialists in the economic field. Our experience spans all jurisdictions (civil, commercial, labor, criminal, etc.) and all judicial instances.
