The big IT
consultancies are ripping
off British taxpayers through over inflated PFI contracts, we have a Treasury under the
guidance of Gordon Brown that has borrowed
over £100 billion more than it promised, government debt is at a staggering £1.34
trillion, three times the Chancellor’s official figures, by taking into
account the PFI, the public-sector
pension deficit and Network Rail debts, while the Big Four Accountancy firms
are potentially advising the PFI firms to stash all that taxpayer revenue in tax
A report in today’s
says that The Big Four accountancy firms have been criticised for
“legitimising” the use of offshore tax havens and for not taking a
strong enough lead in international tax compliance. The claims are made in a
new report by the Tax Justice Network.
extensive presence in tax havens of the Big Four accountancy firms in itself
serves to legitimise the offshore world, which is vital in capital
flight,” said Richard Murphy of the Network, a group of accountants and
economists concerned at the escalating wealth held in offshore locations.
While there are
around 72 offshore havens, only 45 of these are significant and active. The
reports says KPMG works in 41 of these, PriceWaterhouseCoopers appears to have
a presence in 38, the same number as Ernest & Young, and Deloittes are
present in 33 tax havens.
What is Gordon
Brown doing to ensure that these tax loopholes are closed off to all of the PFI contractors?.
It is a high
certainty that most of the PFI companies will have their accounts audited by one of
the Big Four accountancy groups, and lets not forget that it was these accounting
firms that did the accounts for companies like Enron and MCI.
KPMG stated that HMRC,
the UK tax authority, has said: 'Across the whole range of
taxpayers, taxes and circumstances, tax intermediaries help their clients to
avoid errors and deter them from engaging in unlawful actions. So tax intermediaries
are not part of the problem, they are part of the solution.'
represents itself to be an international business but is in fact a Swiss
'cooperative' of individual member firms but no one knows how they are linked.
This is unacceptable under all current governance standards,” said Mr
KPMG has been linked
to the Smith Institute, the Treasury and British and German governments in the
making of regional economic policy at a meeting in London on 27th November
We think that its
time for HMRC to look carefully at these companies who are earning billions of
pounds from the government and their auditors to ensure that the correct levels
of tax are coming back into the Treasury.
As the report
says “There is little doubt that the largest firms of accountants and
lawyers working in the offshore world do their best to steer clear of illegal
practices,” But it observes: “It is not by chance that almost any
story of international crime or corruption has an offshore element to it.”