Price Waterhouse banned from Indian Audits

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Source: 12 January 2018

“PwC’s Indian unit has been banned from auditing listed companies for two years, over one of the country’s biggest corporate scandals.

Price Waterhouse was auditor for Satyam computers when company owner Ramalinga Raju admitted to inflating earnings.

The ban by Indian market regulator the Securities and Exchange Board (Sebi) will come into effect on 31 March.

Price Waterhouse has said that it will appeal the decision in court.”

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PwC found negligent by US judge over Colonial Bank’s $2bn fraud

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Source: accountancy 2 January 2018

PwC auditors were negligent as they failed to detect over $2bn fraud at Alabama’s Colonial Bank which led to its collapse in 2009, according to a US federal judge.

The Federal Deposit Insurance Corporation (FDIC) incurred a cost of $2.8bn after Colonial’s collapse and brought a professional negligence claim against PwC.

US district judge Barbara Jacobs Rothstein said that as auditor of parent company Colonial BancGroup, PwC failed to perform adequate checks and could have done more to prevent the bank’s collapse. The firm failed to respond to red flags and the judge will now consider whether PwC should be liable for damages.

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LuxLeaks tax justice heroes convicted again

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Source: tax 15th March 2017

“The #LuxLeaks whistleblowers appeal verdict is in and once again it demonstrates what an upside down world we’re living in, when whistleblowers on the frontline of tax justice find themselves convicted for a second time for exposing information that was so clearly in the public interest.

Disclosure of such information can be decisive for driving political change, and this is exactly why tax deals in Luxembourg were brokered behind closed doors.

Now it’s time to swing the spotlight onto accountancy firm PwC not only for the disgraceful way they treated these whistleblowers, but to hold them to account for their role the whistleblowers exposed in siphoning off tax revenue from so many EU member states.”

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PwC comments on North Sea decommissioning liability support

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Alan McCrae, PwC’s UK head of energy tax, comments on the UK Government’s focus on breaking down decommissioning barriers in today’s Budget:

“Unquantified decommissioning liabilities, along with lack of clarity over forward oil prices, have had a major impact on deal flows across the North Sea in recent years. If we are to maximise the lifespan of the basin, it’s vital that these barriers are unblocked, enabling assets to move to companies that are likely to invest in the medium to longer term – before they find alternative uses for their capital elsewhere.

“Against this backdrop, we welcome the Chancellor’s focus on late-life assets and the potential for buyers of assets to access decommissioning tax refunds which would otherwise not be accessed on an asset deal. This is a complex issue and I’d encourage industry and wider stakeholders to actively participate in the process over the coming weeks and months in the hope that an agreement can be quickly reached on the way forward.”


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Source: ICIJ 13 May 2016

Prosecutors requested jail and financial penalties for whistleblowers and a journalist who helped reveal industrial-scale tax avoidance schemes in the heart of Europe, as the widely-watched trial that follows the so-called LuxLeaks investigation ended on May 10.

State prosecutor David Lentz, who acknowledged that the LuxLeaks revelations unveiled “certain dubious practices,” also requested an unspecified fine against French journalist Edouard Perrin, who first revealed the documents.

A lawyer representing the Perrin said, “my client has done only done one thing – reveal the truth” ….. “to condemn him would be immoral and contrary to our rights.”

The court’s decision is expected in June.

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