I note this in the Irish Times this afternoon:
Disputes between the big accountancy companies and and tax authorities are common enough. But the decision by HM Revenue and Customs to visit the Belfast offices of KPMG on Wednesday and arrest four senior partners there for questioning on suspected tax evasion is a most unusual development and one which creates a serious issue for the firm and, of course, for the individuals themselves.
The HM Revenue and Customs has picked high-profile targets. The four arrested included KPMG Belfast's chairman, Jon D'Arcy and the head of its tax practice and a high profile figure in the North's corporation tax debate, Eamonn Donaghy. Also questioned were Paul Hollway, who heads KPMG's corporate finance business in Ireland and a fourth senior partner, Arthur O'Brien.
The Revenue authorities visited the KPMG officers to arrest the four for questioning. KPMG said in a statement that there was no indication that the investigation related to the business of the company or its dealings with clients.
I can say, quite sincerely, that I hope that is true.
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Interesting indeed given the seemingly unstoppable spin re the Corporation Tax reduction for Northern Ireland fronted by one of the individuals arrested by HMRC. A heavily indebted property company run by the same men also gets a mention in media reports…how long before the NI property Portfolio of NAMA, the Irish Government ‘Bad Bank’ sold to American Venture Capital company Cerberus under circumstances currently under investigation, pops up in this context?
Keep up the good work.
KPMG have been heavily behind this whole scheme from the beginning
And it will be a disaster
Let’s hope it’s HMRC catching up with the IRS ten years on …
https://www.irs.gov/uac/KPMG-to-Pay-$456-Million-for-Criminal-Violations
The notion that KPMG UK is whiter than KPMG US is as fanciful as the notion that said KPMG UK partners are whiter in KPMG business than in their non-KPMG business 🙂
This is surely the opposite of good PR and must seriously damage their credibility in terms of the core service provided to their clients.
One difficulty is that large multinationals often believe they’re above the law and usually have the most slippery lawyers.
Here is more information on the ethical and cultural problems which lie at the very heart of this giant firm, through a forensic analysis of their audit of HBOS and the conflicts of interest, contradictions, and audit failure. https://www.academia.edu/17958528/THE_CHEMISTRY_OF_AUDIT_FAILURE_-_A_Case_Study_of_HBOS_audit_by_KPMG
There needs to be a dramatic change of leadership and culture at the very heart of the firm, at a minimum. How much longer can this go on?
Thanks Atul
And I agree re leadership
I understand it’s in relation to their personal tax affairs rather than client work. They were all shareholders of a property company and we’re trying to offset the company losses against their self employed income
Bad Pr though clearly!
And you believe KPMG don’t sell dodgy loss schemes to their clients? Go read HMRC v Drummond.
The BBC was reporting the company’s losses over 4 years ago. http://www.bbc.co.uk/news/uk-northern-ireland-13015949
It is not clear where the “suspected tax evasion” angle comes from, though.
Reports suggest questions have been raised on the use of losses
KPMG
Keeping
Profits
Moving
Globally
🙂