Professional Services Monitor: Today

 

April 2, 2007

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

Filed under: Firms,PricewaterhouseCoopers,Tax — 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.

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  1. [...] Ministry has renewed PricewaterhouseCoopers’ license for another five years. In March, PwC was fined in conjunction with its work for Russian company Yukos, and it appeared at the time that the Finance Ministry may not renew the firm’s license. [...]

    Pingback by Professional Services Monitor: Today » PwC Receives Five-Year License Extension in Russia — April 19, 2007 @ 10:07 am

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