Professional Services Monitor: Today

 

January 28, 2008

Russian Court Upholds PwC/Yukos Ruling

Filed under: Uncategorized — psmtoday @ 3:32 pm

The Wall Street Journal reports this evening that a Russian appellate court has upheld a ruling by a lower court.

A Russian court upheld a ruling that PricewaterhouseCoopers LLP essentially was a participant in massive tax evasion by former oil giant OAO Yukos.

The ruling ratchets up pressure on the auditor as the Kremlin gears up for more charges in the politically tinged Yukos case.

On Monday, Russia’s Ninth Arbitration Appellate Court abruptly ended consideration of Pricewaterhouse’s appeal of a lower-court ruling. The original ruling found that Pricewaterhouse’s contract with Yukos should be voided because it involved criminal wrongdoing.

The article also say that is still unclear what impact this will have on PwC’s Russian firm business. PwC says that it is looking for other avenues for appeal.

April 2, 2007

PwC’s Russian Firm Fined by Moscow Court Over Yukos Taxes

Filed under: Uncategorized — psmtoday @ 2:24 pm

Practice Problem or Political Problem?

MosNews.com reports that the Moscow Arbitration Court found that PwC violated professional standards in auditing Yukos and must pay a $480,000 fine.

According to the Kommersant, the full text of the court decision, prepared March 27, harshly criticizes PricewaterhouseCoopers for its participation in illegal tax evasion activities and accuses the company of siding with Yukos officials to “intentionally deceive shareholders by providing them with unreliable information.”
PricewaterhouseCoopers’ press service issued a statement at the time, saying that the audits were conducted “in full conformity with professional standards and current legislation.” The company said the court ruling was unsubstantiated and based on a fundamentally different understanding of an auditor’s role and functions.

PwC’s current Russian’s audit license expires May 20, and the adverse ruling in the Yukos tax case may provide the Russian Finance Ministry grounds for not renewing the firm’s license.

PwC audits several other large Russian companies, including Gazprom, Tatneft and Sberbank.

November 21, 2006

ARGI Releases 2006 Tax Services Survey

Filed under: Uncategorized — psmtoday @ 6:10 pm

For the third consecutive year, the Ames Research Group has completed a comprehensive survey of tax service market share and trends. After covering the Fortune 1000 in 2004 and 2005, the 2006 Big Four Tax Services Research Survey draws on interviews from more than 300 tax directors and other executives from among 1,000 middle-market US companies. The survey determines which firms are providing tax services to each company. Furthermore, these tax executives also offered their assessment of leading firms‚ brand strength, and the key issues facing the tax services industry.
Ernst & Young was the single or co-leader in four of seven tax service lines studied, with Deloitte leading one service line. These results match not only trends ARGI found in tax services among Fortune 1000 companies, but E&Y and Deloitte’s strong results in tax also seem consistent with their performance in audit services as shown in ARGI’s Big Four Quarterly Competitive Summary.
With this third survey, Ames Research Group has now completed more than 700 interviews with tax directors at the largest 2,000 US companies.

The full press release is available for download as a PDF.