Russia expands lawsuit against PwC over Yukos involvement

PwC Russisa... back in court

The Russian federal tax service expanded a case against PricewaterhouseCoopers last Friday, calling for the auditor and prosecutors to produce documents, showing PwC advised the now bankrupt oil company Yukos to avoid taxes.

PwC and the Russian prosecutor general's office were subpoenaed during a hearing at Moscow's ninth arbitration appeal court of PwC's appeal against a ruling earlier this year, which found PricewaterhouseCoopers Audit, PwC's Russia branch, had colluded to sign “false” audits.

Judges at the hearing granted a tax service request that PwC provide information about what it called the firm's help to Yukos on registering firms abroad, creating trust agreements and “option” schemes to control foreign firms and the “siphoning of assets out of Russia via oil trading firms”, according to news agency Interfax.

PwC is the biggest auditor in Russia, employing more than 1500 people and auditing firms such as Gazprom, Alfa Group and the Central Bank.

Further Reading:

New hearings for PwC Russia

PwC gets boost over Yukos audit work