Big Four tax work under threat
International law firms are setting their sights on taking tax work away from the Big Four as the US prepares to finalise rules on auditor independence.
The law firms are apparently going after tax shelter work, by telling their clients that they will have to drop their accountants for such work when the new rules come into place.
A tax lawyer at Allen & Overy told the FT that ‘in many ways, lawyers have greater expertise because many tax strategies in today’s world need skills that are lawyers skills’.
The Securities & Exchange Commission will begin work on finalising auditor independence rules tomorrow, and it is widely tipped that restrictions will be placed on firms doing tax planning for their audit clients, to avoid a conflict of interest.