US probes KPMG tax shelters

Link: KPMG tax shelter generated $1bn in benefits

It will focus on shelters sold to individuals and companies. KPMG said that it would ‘cooperate fully’ with the investigation.

The Justice Department is examining whether or not the schemes offered amounted to tax evasion, reported the Financial Times.

US lawmakers are looking into how tax products were marketed aggressively to limit liabilities.

They are clamping down on tax shelter schemes they believe are illegal.

The Internal Revenue Service is also investigating how accountancy firms sold tax shelters over the past two years.

KPMG is just the latest of the Big Four to face queries over its tax work. Ernst & Young, Deloitte and PricewaterhouseCoopers have all faced criticism from the US authorities over tax work in recent months.

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