PracticeAuditTNT and auditor clash over figures

TNT and auditor clash over figures

The UK arm of delivery and logistics giant TNT is in dispute with its auditors PricewaterhouseCoopers over a £40m tax bill.

Link: Auditor liability back in bill

The matter, which first came to light in February last year, and is being investigated under the Hansard procedure, led PwC to qualify the company’s 2003 results. Hansard allows companies to settle tax disputes without fear of prosecution.

‘We believe that there is significant uncertainty in respect of the amount of tax relief, which will eventually be agreed,’ the PwC audit qualification statement said. It went on to say that the tax, interest and penalties ‘may exceed the amount in creditors by up to £20m’. In the accounts, TNT states its liabilities amount to £19.9m.

PwC said that its opinion arises from ‘disagreement about the quantum of tax related liabilities’.

The amount of tax due to the Revenue from TNT, a subsidiary of Dutch group TPG, related to the ‘tax treatment of licence fees payable to another company in the TPG group’.

A TPG spokesman confirmed the disagreement with PwC, but urged that ‘it did not stop PwC signing off the group’s accounts’.

The company’s directors were advised in 2004 that a previously released settlement deal may be reopened.

A Revenue spokeswoman said that it was unable to comment on an individual company.

Related Articles

The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

Audit The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

5d Carl Johnson, Stephensons
BDO holds off Big Four to retain top position as AIM auditor

Audit BDO holds off Big Four to retain top position as AIM auditor

6d Alia Shoaib, Reporter
FRC urged to fine Big Four firms penalties over £10m

Audit FRC urged to fine Big Four firms penalties over £10m

3w Alia Shoaib, Reporter
EY to audit Standard Chartered bank

Audit EY to audit Standard Chartered bank

1m Alia Shoaib, Reporter
KPMG replaces PwC as Croda auditor

Accounting Firms KPMG replaces PwC as Croda auditor

2m Emma Smith, Managing Editor
EY fined £1.8m over Tech Data audit

Accounting Standards EY fined £1.8m over Tech Data audit

2m Emma Smith, Managing Editor
Top 50+50: Firms post significant growth in new tax and audit rankings

Audit Top 50+50: Firms post significant growth in new tax and audit rankings

2m Emma Smith, Managing Editor
FRC closes investigation into PwC over Barclays compliance

Accounting Firms FRC closes investigation into PwC over Barclays compliance

2m Alia Shoaib, Reporter