Andersen faces US tax inquiry
Sunday 29 September 2002
Andersen, the accounting firm ravaged by its involvement in numerous US corporate scandals, is facing another investigation – this time by the US tax authority.
The probe focuses on the firm's involvement in promoting tax shelters that have "potentially" hidden up to $1.6bn (£1bn) in revenues.
The Internal Revenue Service (IRS), which is the US version of the Inland Revenue, has filed a petition in the Chicago federal court in an attempt to force Andersen to provide information. The authority is investigating whether the US division of Andersen may be liable for fines, for not complying with the rules governing tax shelters.
The IRS said it had found evidence that Andersen has promoted tax shelter transactions that have "likely improper tax deductions" of between $10m and $1.6bn.
The petition stated that the IRS had served 19 summonses to Andersen in April, requesting information. It said responses to the summonses were inadequate, so it is asking the court to force Andersen to produce the relevant documents.
Andersen collapsed earlier this year following a string of accounting scandals in the US. It had audited the accounts of Enron, WorldCom and Global Crossing and was found guilty by the US Department of Justice of obstructing the Enron investigation.
The accounting firm was broken up and the parts were sold on a country-by-country basis. In the UK, the Andersen practice was sold to Deloitte & Touche. In the US, the practice still exists in fragmented form.
The court petition is part of a wider investigation into tax avoidance shelters.
Andersen has claimed in the American media that it has responded to the court petition by saying that it had given the IRS significant amounts of information, and that it had to protect its clients' confidentiality.
- 2 The man who filmed the Freddie Gray video has been arrested at gunpoint
- 3 How the language you speak changes your view of the world
Oxygen-starved 'dead zones' with no marine life up to 100-miles long discovered in the Atlantic Ocean
The man who filmed the Freddie Gray video has been arrested at gunpoint
Indonesia executions: Death row British grandmother Lindsay Sandiford will refuse to wear a blindfold when she faces firing squad
Russian warships accused of 'chasing away' Swedish vessel to prevent Baltic States from achieving energy independence
How the language you speak changes your view of the world
Over 50,000 families shipped out of London boroughs in the past three years due to welfare cuts and soaring rents
EU asylum policy is 'a direct threat to our civilisation', says Nigel Farage
The Rothschild Libel: Why has it taken 200 years for an anti-Semitic slur that emerged from the Battle of Waterloo to be dismissed?
General Election 2015: SNP and its activists 'openly racist' towards the English, Farage says
General Election 2015: UK will be 'run for the wealthy and powerful' if Tories retain power, Labour warns
Schools forced to act as 'miniature welfare states' with teachers buying underwear and even haircuts for poor pupils
iJobs Money & Business
£16000 - £18500 per annum: Recruitment Genius: This is an excellent opportunit...
£24000 - £28000 per annum: Recruitment Genius: A Senior SEO Executive is requi...
£16000 - £18000 per annum: Recruitment Genius: An Online customer Service Admi...
£18000 - £22000 per annum: Recruitment Genius: This global, industry leading, ...