KPMG has settled it case violation tax case in Texas. It was fined the maximum allowed under state law, $1,000 per offence and ordered to pay costs of $3,842. It is also on probation for the next three years during which is must keep its nose clean or see its practicing license revoked. From WebCPA:
Under the agreement, KPMG admitted that through the actions of former partners and employees it prepared fraudulent tax returns for clients; drafted false statements to support the tax shelters; issued opinions that were false; concealed the tax shelters and the facts regarding them from the Internal Revenue Service; failed to locate and produce documents sought by the IRS, and misrepresented to the IRS KPMGâ€™s role in creating the tax shelters.
It doesn’t matter which way KPMG attempts to spin this or divert attention away, the extent and number of admitted offences spells out one thing: systematic law breaking that continued after the original offences were committed.
I know there is a large majority of professionals who see tax avoidance as a business cost. But when set out in these stark terms, it is hard to understand how advisors can justify that position when they must know they’re attempting to manipulate the law for advantage. I can’t understand that logic.