Tax shelter defendants win subpoena battle
KPMG unsuccessful in preventing access to documents
Former KPMG partners charged in an alleged fraudulent tax-shelter scheme will
be able to get access to documents related to the firm’s policies on providing
its employees legal fees.
The request was granted by federal judge Lewis A. Kaplan in Manhattan who
said he was not persuaded by a letter from KPMG asking him to hold off on
issuing the subpoena.
The judge initially approved the issuance of a subpoena in an order last
week, but the former KPMG partners then asked that additional documents be
included in their subpoena request.
Sixteen former KPMG tax partners and two other individuals are charged with
conspiracy and tax evasion over a scheme which allegedly allowed wealthy people
to avoid paying $2.5bn (£1.4bn) in taxes to the Internal Revenue Service.
The case is expected to go to trial in September.