KPMG receives complaints over Isle of Man controversy

KPMG receives complaints over Isle of Man controversy

The Big Four firm's Canadian arm is accused of setting up offshore tax structures in the Isle of Man

KPMG’S Canadian arm is the subject of two complaints from one of the country’s largest financial worker’s unions, with the group claiming that the Big Four firm set up offshore tax structures in the Isle of Man to help wealthy Canadians avoid paying taxes.

The Association of Canadian Financial Officers, which represents more than 4,500 government financial officers in the country, has lodged two formal complaints of professional misconduct against the Big Four firm, urging the Chartered Professional Accountants to “measure KPMG’s behaviour against the profession’s code of conduct”.

The complaints surround KPMG’s alleged involvement in sheltering funds of wealthy Canadian clients using a company based in the British Crown dependency.

“We believe that providing this type of service is contrary to the profession’s reputation for competence and integrity,” highlighted the complaint.

“These actions go well beyond the establishment of individual reputations; it affects the public perception of the chartered professional accountancy profession as a whole.”

A spokesperson for KPMG responded to the complaints, labelling them as “defamatory”.

“All tax planning undertaken by KPMG has always and continues to meet the requirements of all Canadian and provincial tax laws.

“We know that any review will conclusively demonstrate that KPMG’s people acted with the highest integrity and respect for the law at all times. To suggest anything else is defamatory,” continued the spokesperson.

This development comes just days after five additional named women joined the ongoing $350m (£243m) class action gender discrimination lawsuit against the accountancy firm.

The use of offshore tax havens has come under scrutiny in recent times, particularly through the emergence of the Panama Papers.

Related Articles

PwC to net £50m from Carillion insolvency

Accounting Firms PwC to net £50m from Carillion insolvency

6m Alia Shoaib, Reporter
What does the future hold for listed accountancy firms?

Accounting Firms What does the future hold for listed accountancy firms?

9m Fergus Payne, Lewis Silkin
David Sproul, Senior Partner and Chief Executive, Deloitte

Accounting Firms David Sproul, Senior Partner and Chief Executive, Deloitte

10m Lucy Skoulding, Reporter
Financial Power List 2018: 1-5 revealed

Accounting Firms Financial Power List 2018: 1-5 revealed

10m Lucy Skoulding, Reporter
LLPs in Top 50+50: Will LLPs continue to be the preferred set-up?

Accounting Firms LLPs in Top 50+50: Will LLPs continue to be the preferred set-up?

1y Fergus Payne, Lewis Silkin
KPMG replaces PwC as Croda auditor

Accounting Firms KPMG replaces PwC as Croda auditor

1y Emma Smith, Managing Editor
Top 50+50: Firms fall short on diversity

Accounting Firms Top 50+50: Firms fall short on diversity

1y Alia Shoaib, Reporter
FRC closes KPMG HBOS audit investigation, Treasury Committee expects ‘full explanation’

Accounting Firms FRC closes KPMG HBOS audit investigation, Treasury Committee expects ‘full explanation’

1y Emma Smith, Managing Editor