KPMG offers deal to tax shelter clients

The majority of investors enticed into KPMG’s tax shelter schemes look set to
accept a new compensation offer.

According to the New York Times, KPMG will pay about $150m (£83m) to
209 eligible investors if the deal is approved next month.

The revised settlement will give each investor an average of more than
$700,000 (£388,000).

A deal offering $195m (£108m) in September collapsed after 64 of the 264
investors chose not to take part, saying the agreement did not offer them enough

The new deal is likely to see 76% of investors taking part, according to
papers filed in the US District Court in Newark, New Jersey this week.

Last August, KPMG paid $456m (£253m) in a deferred- prosecution agreement
with US prosecutors over certain tax shelter schemes.

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