PracticeAccounting FirmsEnron tax schemes slammed

Enron tax schemes slammed

The dodgy tax dealings of collapsed energy trader, Enron, have come under increasing scrutiny from bankruptcy examiner, Neal Batson.

Link: US regulators to rule on financial entities

A report filed with the US Bankruptcy Court yesterday, which was seen by the Washington Post, stated: ‘Enron records show that…undisclosed tax deals added more than $1bn in ‘paper’ profits to Enron’s financial statements between 1996 and the company’s bankruptcy filing in December 2001, helping it boost its stock price.’

But Robert J Herman, speaking last year, insisted the company did not break any tax laws, but merely used them. ‘That is what lawyers and accountants do,’ he said.

If Batson does manage to prove that tax laws were indeed broken it would open the door to the possibility of suing financial advisors and lawyers who worked with Enron on the schemes.

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