TaxAdministrationEx-KPMG defendants walk away from tax-shelter case

Ex-KPMG defendants walk away from tax-shelter case

Setbacks have forced US prosecutors to pass in a criminal tax-shelter case once labelled the biggest in history

A series of setbacks have effectively left US Federal prosecutors with no
choice but to drop their last chance to revive criminal tax-shelter proceedings,
once labelled as the biggest in history, against 13 of the 19 original
defendants.

Most of those charged were from
KPMG, including a former
vice chairman of the firm, who were indicted in 2006 on charges of conspiracy,
tax evasion and fraud in relation to the most aggressive tax shelters sold to
wealthy Americans over the late 1990s through early 2000, according to reports
in The New York Times. They will walk away from the case unpunished.

Two defendants have already pleaded guilty and the four remaining are now
standing trial in Federal District Court in Manhattan in a case which has been
reduced to a shadow of its former self.

In 2006, Judge Lewis Kaplan of Federal District Court in Manhattan threw out
charges against the 13 defendants, on the grounds that prosecutors had violated
their constitutional rights by pressuring KPMG to stop paying their legal fees.
The dismissal was upheld in August by an appeals court.

Further reading:

Court upholds dismissal of KPMG partner charges

Read
The New York Times story

Related Articles

LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

1d Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

2w Emma Smith, Managing Editor
HMRC issues updated Trusts Registration Service guidance

Administration HMRC issues updated Trusts Registration Service guidance

2w Emma Smith, Managing Editor
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

2m Emma Rawson, ATT Technical Officer
‘Improve rather than lose’ disincorporation relief, tax body urges

Administration ‘Improve rather than lose’ disincorporation relief, tax body urges

3m Austin Clark, Reporter
Are you ready for the Trusts Registration Service?

Administration Are you ready for the Trusts Registration Service?

3m Helen Thornley, ATT Technical Officer
Advisers bullish despite Brexit concerns

Accounting Standards Advisers bullish despite Brexit concerns

1y Fraser Simpson, Reporter
Brexit: Five questions accountants should be asking

Accounting Firms Brexit: Five questions accountants should be asking

1y Fraser Simpson, Reporter