Exclusive: E&Y loses UK head of tax to PwC

PwC has pulled off a recruitment coup by poaching Ernst & Young’s UK head of tax, Paul Davies, to become a partner at the UK’s biggest firm.

This is the second departure of a senior figure from Ernst & Young in as many weeks. Last week Jock Lennox, the man who lost out to Mark Otty in the race to lead Ernst & Young in 2005, announced he is to retire early from the firm next year.

The move will be viewed as a blow to E&Y as it works on bedding down its new EMEIA structure, announced in April of this year, which brought the management of 87 national firms into single unit headed by former UK and northern Europe leader Mark Otty.

Davies made clear his reasons for leaving E&Y to join PwC saying, ‘I have made this decision because I want to work with the leading tax practice in the UK and globally. I believe that the strength and depth of the PwC tax practice’s expertise is a real differentiator in serving clients consistently across the world.’

Ian Powell, PwC’s UK chairman, said: ‘This appointment is part of an ongoing programme within PwC to ensure we have the best people for the long-term success of our business and our clients.’

E&Y this week said the move was not an issue they would comment on.

Davies was UK head of tax at E&Y from July 2006 until this month. He will take up his role at PwC in May next year.

Under the EMEIA restructuring of E&Y Stephan Kuhn, who was tax leader for Central Europe became leader of tax for the new grouping.

PwC's UK tax practice currently takes revenues of £667m while E&Y's £335 in its last set of results.