The Department of justice has launched a criminal investigation into illegal tax shelter services previously offered by former partners of accounting firm KPMG LLP.
KPMG LLP issued a statement today that claims full responsibility for all unlawful actions taken by former partners of the firm. The Department of Justice is going after KPMG for obstruction of justice and selling abusive tax shelters.
“KPMG takes full responsibility for the unlawful conduct by former KPMG partners during that period, and we deeply regret that it occurred,” the firm stated.
KPMG said that it has taken actions to ensure that this type of conduct doesn’t happen again including not offering the services in question, and making sure the people responsible for the illegal actions were removed from the firm.
The firm has also made structural, cultural, and governance changes in order to preserve ethics. KPMG says it has undertaken significant change in its business practices.
“We remain in discussions with the Department of Justice and continue to cooperate fully in its investigation,” said KPMG. “KPMG looks forward to a resolution that recognizes the significant reforms the firm has already made in response to this matter while appropriately sanctioning the firm for this wrongdoing. We take this matter very seriously and seek to resolve it fairly and expeditiously.”
The last time a criminal indictment was brought against a major accounting firm was that of Arthur Andersen. This led to the fall of the firm, but its conviction was recently reversed.
Chris is a staff writer for Murdok. Visit Murdok for the latest ebusiness news.
