KPMG, Leeds United and offshore

Posted on

KPMG are in a spot of bother again. As has been mentioned here before, they proved compliantly gullible when appointed as administrators of Leeds United, put into liquidation at the behest of its chairman, Ken Bates and with the apparent willing cooperation of its mysterious offshore creditors, only for Bates to buy it straight back with the support of those self same creditors.

Now the Revenue have rightly challenged the deal, which was clearly abusive. So KPMG have had to buy the club back from Bates to put it up for sale again, with Bates being the likely buyer again. Which will then give HMRC the only option of liquidating the whole thing.

Three things are important:

1) HMRC have acted properly;

2) KPMG have acted appallingly;

3) There's yet more more evidence that offshore causes nothing but harm.

When will KPMG learn? Perhaps they never will. They remain the biggest offshore operator of the Big 4, after all.