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Sarbanes-Oxley News & Developments
PCAOB Is Sniffing Out Abusive Tax SheltersMcDonough warns he will not tolerate marketing abuse of tax shelters.
> > The most powerful person overseeing the accounting industry, PCAOB Chairman William McDonough, warned he will not tolerate the marketing of abusive tax shelters.
Accountants, bankers and lawyers have agressively marketed abusive shelters to taxpayers at a cost of billions of dollars to the U.S. Treasury, says a new report from the Senate Permanent Subcommittee on Investigations. The report found that accountants designed abusive tax schemes, such as phony paper losses or phony charitable donations, and marketed them. McDonough noted that the PCAOB, the accounting industry congressionally created regulator, can bar auditors from advising audit clients on tax shelters if it would lead the auditor to be auditing its own work. The board, however, cannot bar auditors from offering tax shelter advise to non-audit clients.
Source: CFO
Published:2003-11-18
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