Government has never tried to recover legal costs from promoters of tax avoidance schemes and continues to award them taxpayer funded contracts

Despite the evidence of fraudulent schemes, no major accountancy firm has ever been disciplined by any professional accountancy body

Professor Prem Sikka writes that Her Majesty’s Revenue and Customs (HMRC) is investigating some 41,000 tax avoidance schemes, but there is still no investigation of the industry that designs and markets aggressive tax avoidance schemes . . .

Now the public accounts committee (PAC) chair Margaret Hodge has PwC, Ernst & Young, KPMG and Deloitte in her sights. The PAC should investigate the role of these firms in organised tax avoidance. An earlier internal HMRC study estimated that these four firms “were behind almost half of all known avoidance schemes” . . .

Despite the evidence, no accountancy firm has ever been disciplined by any professional accountancy body and despite spending millions of pounds to quash predatory schemes, the UK Treasury has never sought to recover the legal costs from the promoters of the schemes. Instead, the big accountancy firms continue to receive taxpayer funded contracts . . .

No government will be able to effectively tackle tax avoidance without shackling the designers and enablers.

Read the whole article here: http://www.guardian.co.uk/commentisfree/2012/dec/08/predatory-practices-accountancy-firms

 

Posted on December 10, 2012, in Banking and finance, Democracy undermined, Government, Parliamentary failure and tagged , , , , , , , , , . Bookmark the permalink. Leave a comment.

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