Difference between revisions of "Deloitte"
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Just four accounting firms – [[PricewaterhouseCoopers]], [[KPMG]], [[Deloitte & Touche]] and [[Ernst & Young]] – audit 97 per cent of FTSE 350 companies<ref>Prem Sikka, [http://www.guardian.co.uk/commentisfree/2008/dec/14/credit-crunch-auditing Called to account], ''The Guardian'', 14 December 2008 </ref> and 99 per cent of the FTSE 100. | Just four accounting firms – [[PricewaterhouseCoopers]], [[KPMG]], [[Deloitte & Touche]] and [[Ernst & Young]] – audit 97 per cent of FTSE 350 companies<ref>Prem Sikka, [http://www.guardian.co.uk/commentisfree/2008/dec/14/credit-crunch-auditing Called to account], ''The Guardian'', 14 December 2008 </ref> and 99 per cent of the FTSE 100. | ||
| − | Deloitte's clients include firms facing intense public backlash over tax avoidance allegations, such as [[Vodafone]] and [[Starbucks]]. | + | Deloitte's clients include firms facing intense public backlash and scrutiny over tax avoidance allegations, such as [[Vodafone]] and [[Starbucks]]. |
==Controversies and conflicts of interest== | ==Controversies and conflicts of interest== | ||
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A spokesman for Deloitte told the Guardian: | A spokesman for Deloitte told the Guardian: | ||
| − | :Dave Hartnett will work as a consultant to Deloitte advising foreign governments and tax administrations, primarily in the developing world. He has significant experience in advising such countries on the development of effective tax regimes, necessary to ensure their continued economic growth. He will not work with UK companies or with HMRC. | + | :Dave Hartnett will work as a consultant to Deloitte advising foreign governments and tax administrations, primarily in the developing world. He has significant experience in advising such countries on the development of effective tax regimes, necessary to ensure their continued economic growth. He will not work with UK companies or with HMRC. <ref> Simon Neville, [http://www.guardian.co.uk/business/2013/may/27/deloitte-appoints-dave-hartnett-tax Deloitte appoints official criticised over 'sweetheart' tax deals], ''The Guardian'', 27 May 2013 21.16 BST </ref> |
==People== | ==People== | ||
Revision as of 07:23, 17 June 2013
Deloitte Touche Tohmatsu International - Deloitte - is an organisation of member firms around the world in accounting and financial and risk consultancy. Member firms offer services in audit, tax, consulting and financial advisory. Member firms focus on client service through a global strategy executed locally in nearly 140 countries.[1] The parent group is Deloitte Touche Tohmatsu.
Just four accounting firms – PricewaterhouseCoopers, KPMG, Deloitte & Touche and Ernst & Young – audit 97 per cent of FTSE 350 companies[2] and 99 per cent of the FTSE 100.
Deloitte's clients include firms facing intense public backlash and scrutiny over tax avoidance allegations, such as Vodafone and Starbucks.
Controversies and conflicts of interest
According to Andrew Simms of the New Economics Foundation, "Conflicts of interest are built into the very DNA of the big professional services firms. These companies are working with firms that need to be regulated and the government bodies that are regulating".
Tax avoidance
The Big Four accountancy firms were behind almost half of all known [tax] avoidance schemes, the Revenue (HMRC) said in 2006.[3]
Secondments to the Treasury
In 2013 a report by the influential UK Commons public accounts committee found that the Big Four were using knowledge gained from staff seconded to the Treasury "to help wealthy clients avoid paying UK taxes". The firms, it said, went on to "advise multinationals and individuals on how to exploit loopholes around legislation they had helped to write".
PAC committee chair Margaret Hodge said the accountancy firms' actions represented a "ridiculous conflict of interest". She called for the Treasury to stop accepting their staff to draw up new tax laws. "The large accountancy firms are in a powerful position in the tax world and have an unhealthily cosy relationship with government," she said. [4]
Donations in kind
In the three years to July 2012 Deloitte gave £435,034 in staff costs and consultancy services to the Conservative Party and £13,500 to Labour, according to the Bureau of Investigative Journalism. Deloitte said:
- It is Deloitte’s policy not to give cash contributions to any political party or other groups with a political agenda. However, we do seek to develop and maintain constructive and balanced relationships with each of the main political parties and may make available staff and adviser resources, and technical and factual information on occasion. [5]
Former tax top dog through the revolving door
In late May 2013 it emerged that the Advisory Committee on Business Appointments (Acoba) and David Cameron had approved Deloitte's appointment of Dave Hartnett, the former head of UK's tax office HRMC in a one day a week consultancy position. Hartnett had come pressure over his 'sweetheart deals' with Vodafone which saw the firm pay only £1.25billion of an estimated £6billion due (a figure disputed by Vodafone).
A spokesman for Deloitte told the Guardian:
- Dave Hartnett will work as a consultant to Deloitte advising foreign governments and tax administrations, primarily in the developing world. He has significant experience in advising such countries on the development of effective tax regimes, necessary to ensure their continued economic growth. He will not work with UK companies or with HMRC. [6]
People
- Bill Dodwell - head of tax policy at Deloitte - gave evidence before the public accounts committee in 2013 [7]
- Dave Hartnett - former HMRC head of tax, now Deloitte consultant
Notable former employees
- Chloe Smith, UK Cabinet Office minister 2012-
Affiliations
Policy planning, think tanks, trade associations
- John Maxey and Paul Megson of Deloitte are members of the British Private Equity and Venture Capital Association Taxation Committee, which works to influence government policy on tax.
- In 2008, Deloitte & Touche is listed as a member of the American Benefits Council.[8]
- Institute of European Affairs, member
Lobbyists
- Westbourne Communications - as at November 2012
- APCO Worldwide [9]
Contacts
London offices:
2 New Street Square
London EC4A 3BZ
Athene Place, 66 Shoe Lane
London EC4A 3BQ
Hill House, 1 Little New Street
London EC4A 3TR
Stonecutter Court, 1 Stonecutter Street
London EC4A 4TR
website: http://www.deloitte.com
References
- ↑ Deliotte Touche About Deliotte Touche accessed 31.01.07
- ↑ Prem Sikka, Called to account, The Guardian, 14 December 2008
- ↑ Gilt-edged profits for profession's 'big four', Guardian, 7 February 2009
- ↑ Rajeev Syal, Simon Bowers and Patrick Wintour, [Accountancy firms 'use knowledge of Treasury to help rich avoid tax' – MPs] The Guardian, Friday 26 April 2013, acc 12 June 2013
- ↑ Maeve McClenaghan, |How ‘big four’ get inside track by loaning staff to government, Bureau of Investigative Journalism, July 10th, 2012
- ↑ Simon Neville, Deloitte appoints official criticised over 'sweetheart' tax deals, The Guardian, 27 May 2013 21.16 BST
- ↑ Rajeev Syal, Simon Bowers and Patrick Wintour, Accountancy firms 'use knowledge of Treasury to help rich avoid tax' – MPs, The Guardian, 26 April 2013, acc same day
- ↑ American Benefits Council Memberships Accessed 26th February 2008
- ↑ APPC Register Entry for 1 December 2010 to 28 February 2011
