The FT carries a feature on Simon Collins, the new boss of KPMG in the UK this morning. It's a rambling piece of corporate puffery ending with some of the challenges he might face, including how to handle aggressive tax avoidance. The article notes:
Mr Collins defends the right to mitigate tax liabilities but says some taxpayers have been taking things too far.
Tax advisers need their own moral compass, he says. But what does that mean in practice?
“A test I often use is: would my kids be proud of me?” he suggests.
If he buys them a new Porsche or pony I'm sure they'd be proud of him whatever he does.
As failed moral compasses go that has to be about the most spectacular. Using an audience whose objectivity will always be in doubt and whose affection you are easily able to buy as a test of right and wrong indicates a simple belief in asking the wrong question of the wrong people and in the power of the market to deliver any opinion that is desired if enough cash is thrown at those offering the opinion.
No wonder KPMG is and will remain in trouble. Blind self interest and the perpetuation of privilege is very obviously at the very heart of its ethos.
NB: I trained at KPMG
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Excellent comments Mr Murphy.
“Big 4” and “moral compass” are contradictions in terms …
Maybe he’s not so far off the mark. Just need to add in ‘assuming that they and their peers are of an age to understand the issues when Daddy’s name gets plastered all over the media and blogosphere’.
So Collins takes guidance on his approach to tax policy from his children; that explains a lot. Whilst I am sure they are good natured little darlings, I do question if their understanding of the UK’s tax code, and the moral and social implications of egregious tax avoidance, is sufficiently comprehensive to direct opprobrium at Daddy when he’s being a meanie.