KPMG
KPMG is one of the largest professional services firms in the world and one of the Big Four accountancy firms.
Just four accounting firms – PricewaterhouseCoopers, KPMG, Deloitte & Touche and Ernst & Young – audit 97% of FTSE 350 companies.[1] "Although their might is being challenged by mid-tier firms such as Grant Thornton.[2]
The four were behind almost half of all known avoidance schemes, the Revenue (HMRC) said in 2006.[3]
KPMG in the UK
KPMG in the UK has over 10,000 partners and staff working in 22 offices and is part of a strong global network of member firms.[4]
Tax avoidance
Prem Sikka, Professor of Accounting at the University of Essex writes:
- "With the aid of accountancy firms, numerous corporate transactions are manufactured for the purpose of avoiding taxes. KPMG has admitted selling "unlawful" tax avoidance schemes that effectively deprived US public funds of billions of dollars. The firm has been fined nearly $500m as a result. Several of its ex-partners face the prospect of criminal prosecutions.
- "The same firms also peddle a range of avoidance schemes in the UK, which are estimated to cost the state £100bn each year in possible tax revenues. KPMG developed a VAT avoidance scheme for a company operating 127 amusement arcades in the UK... The scheme increased the firm's earnings by about £4.2m - about the amount needed to provide 2,500 NHS hip replacements. The ensuing court hearing learned that, in common with its US practices, KPMG cold-called the amusement arcade operator to sell the scheme. The firm produced a 16-page booklet that listed 83 detailed steps necessary to make it work. The firm suspected that Customs might regard the scheme as "unacceptable tax avoidance", but nevertheless sold it. Following a UK court defeat, KPMG and its client took the case to the European court of justice. A preliminary decision by the EU advocate-general has declared the scheme to be "unacceptable"."[5]
More on KPMG and tax avoidance:
Sheltering cash: the intricate schemes drawn up by KPMG.[6]
The Tax Gap, series of articles on tax avoidance, The Guardian, 2009.[7]
Awards
In 2011 it won The Society of Trust and Estate Practitioners (STEP) award for Accountancy Team of the Year. [8]
People
- Jane McCormick, Head of Corporate Tax, KPMG. McCormick is a member of the Treasury's Tax Professionals Forum.[9]
- Paul Harrison, Tax Partner and Head of Tax investigations [10]
- Jacqui Smith, former Labour Home Secretary became a consultant in June 2011 [11]
Contact
Main London offices:
8 Salisbury Square
London, EC4Y 8BB
15 Canada Square
London, E14 5GL
References
- ↑ Prem Sikka, Called to account, Guardian, 14 December 2008
- ↑ Prem Sikka, Raw dealing, Guardian, 30 May 2007
- ↑ Gilt-edged profits for profession's 'big four', Guardian, 7 February 2009
- ↑ KPMG websiteWho We Are, UK, accessed April 2010,
- ↑ Prem Sikka, Accountants: a threat to democracy, Guardian, 5 September 2005
- ↑ The Tax Gap, Sheltering cash: the intricate schemes drawn up by KPMG, Guardian, 7 February 2009
- ↑ The Tax Gap, Guardian, 2009
- ↑ STEP Private Client Awards: Winners for 2011/12, acc 26 Sept 2011
- ↑ HM Treasury, Tax Professionals Forum, accessed April 2011
- ↑ UK / Swiss tax agreement – “Tax evaders need to wake up and smell the coffee” says KPMG, news release KPMG, acc 27 Sept 2011
- ↑ , Geoffrey Levy, Tony's cronies and snouts in the trough: How one-time Labour bigwigs are raking it in thanks to the private sector, 10 June 2011, acc 28 Sept 2011
