PracticeAuditKPMG US to pay hefty fines

KPMG US to pay hefty fines

US firm pays thousands in fines to regulator over dubious tax shelter schemes

KPMG US’s tax shelter case has seen the firm receive
penalties
on 96 violations
.

The firm must pay $1000 per violation – the maximum fine under Texas state
law. The firm also had to pay $3842 in administrative costs.

KPMG America’s license suspension has also been stayed in Austin Texas by the
State Board of Public Accountancy after the firm made admissions in a deferred
prosecution agreement with the US Department of Justice two years ago, relating
to tax shelters it designed, implemented and marketed between 1996 and 2002.

Under the agreement, KPMG admitted that former partners and employees
prepared fraudulent tax returns for clients; drafted false statements to support
tax shelters; issued opinions that were false; concealed tax shelters and
information about them from the tax authorities.

The firm also admitted failing to locate and produce crucial documents sought
by the tax authority and misrepresented to the firm’s role concerning the tax
shelters, to the Internal Revenue Service.

The board approved a consent order to suspend the licence but the stay order
now means the firm will be placed on probation for the next three years.

Further reading:

Former KPMG accountant pleads guilty

US regulator critical of E&Y, KPMG
audit work

KPMG
on Texas Probation for Tax Shelters

Related Articles

PwC replaces EY as Dominos auditor

Audit PwC replaces EY as Dominos auditor

2h Alia Shoaib, Reporter
The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

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

6d 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

7d 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