Greed driven goblins

It is nice to see that places like PwC are avoiding prison time whilst other people without an accountancy degree do not. This all started when I saw the article (at https://www.bbc.co.uk/news/business-66016270) called ‘PwC Australia sells division for 50p after tax leak scandal’ here we are told “The accounting giant has also announced the appointment of a new chief executive in the country. The move will allow the firm “to move forward with predictability and focus,” PwC Australia said in a statement.” Which reads like a little party line. We aren’t given the more realistic “In this day and age, we tried different approaches to cater to our overly rich clients and corporations to cater to their need for greed so that we can enjoy slices of Greed filled Lasagna as well. As we need our ground forces, we have decided on switching out our Chief Executive whose bonus will sustain him for the next decade.” So is my view flawed? Consider The Financial Times (at https://www.ft.com/content/97dcb050-49df-11e7-919a-1e14ce4af89b) alas behind a paywall, which gives us ‘PwC escapes censure over Tesco accounting scandal’, other sources gives us “Tesco has been found to have overstated it profits by £263m after revenue recognition irregularities were spotted in its half-year results, with regulators including the Financial Conduct Authority (FCA) set to decide on a suitable punishment.” The reason for this is that the Tesco Scandal (the accounting one) was in 2014, in almost 10 years they (and the courts) never learned and never achieved (nearly) anything. That conclusion comes from the fact that you do not become Chief Executive overnight and Tesco was 8 years ago. This is not some case of being creative, this is bending black letter law to the maximum effect. It is about what a company can get away with and that is a failure on a few levels. 

So when we see “The ex-partner, who was advising the Australian government, had shared drafts of corporate tax avoidance laws with colleagues, who used it to pitch to potential clients. The leaks occurred between 2014 and 2017.” We will be given a new stage. You see, for three years PwC enjoyed a stage where they could go beyond simple advantage for THEIR customers all whilst courting the government for having a ground zero in corporation tax avoidance laws. This is not a small problem. With “Earlier this month, PwC Australia said it had identified 76 current and former partners linked to the scandal and handed their names to Australian lawmakers.” As I personally see it this is not small small group, it is a large cluster of people connected to the PwC and I am willing to bet the house that the size of this group allowed certain people to remain insulated from the fallout. I agree it is speculative, but in light of of the activities by PwC since 2008 I feel that I might be spot on. We see a whole barrage of articles by Accountancy firms making accusations, but we see an amazing lack of action. As such the ‘punishment’ of “sell its government business for A$1 (50p) after a scandal over the misuse of confidential government tax plans” reads like a bloody joke. It leaves the orchestrators free form prosecution, it leaves them with their income, their bonus and a rich life to come. It is perhaps the clearest piece of evidence that in this day and age Crime Pays, even more than an honest day work.

Enjoy paying most of your coin to afford a cup of coffee today.