Accounting Big 4 ‘a threat to democracy’ as they help companies avoid tax

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From the Daily Mail this morning:

The Big Four accountancy firms are the greatest threat to democracy on the planet because of their activities in helping companies avoid tax, according to a leading campaigner.

Richard Murphy of Tax Research UK said PwC KPMG, Deloitte and Ernst & Young are a menace to the democratic process due to their schemes to help large companies such as Vodafone, Apple and Amazon to deprive government coffers.

‘The biggest threat to global democracy is not North Korea, it is the Big Four accountancy firms. The threat is that they undermine the revenues that elected governments expect to receive,' he said.

‘If you undermine government revenues, then you deny them the chance to fulfil their democratic mandate and the electorate gets fed up. It is fair to say that many FTSE 100 companies use Luxembourg for group financing. I wish I could tell you how much revenue is lost to the UK exchequer as a result. Work based on IMF data suggests there are more flows through Luxembourg than any other financial centre in the world.'

Yes, I did say that. And I think it's true.

If you want the one consistent thread that holds tax abuse, tax havens and the companies that dominate the globalised world who seek to avoid their tax obligations  then it's the Big 4.

And the result of their actions is that they endorse tax abuse - and the consequences of that are now apparent as state after state faces deficits with the cost being loaded on the poorest in society.

And yes - that is accountant's fault. Democracy is now at risk. And they have played a big part in that by proactively seeking to undermine it.

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