The lawyer for KPMG said the Big Four firm would fight efforts to force it
pay the legal fees of former partners involved in the US tax shelter case.
The 16 partners, who are accused of setting up illegal tax shelters for
wealthy investors, have launched a lawsuit aimed at forcing the firm (and their
former employer) to pay their legal fees.
But Robert Bennett, KPMG’s lawyer, told a hearing in federal court in
Manhattan, that the firm planned to oppose the lawsuit filed earlier this week.
Reuters reported Bennett as saying that KPMG ‘has no legal obligation to pay
these fees’ nor does the firm have any intention of paying them.
Prosecutors have charged the former KPMG tax partners and two other
individuals with conspiracy and tax evasion, alleging they participated in a
scheme that allowed wealthy people to avoid paying billions of dollars in taxes
to the Internal Revenue Service.
The case is expected to go to trial in September.
HMRC breaches client confidentiality; and partner profits fall at EY. These stories and more discussed in Friday Afternoon Live
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