Leading tax authority branded the big four accounting firms as aggressive, unethical. They are accused of “perpetrating the greatest tax crimes in history”.
George Rozvany, who has been working in the corporate tax industry claims that the four giant firms who audit the books of nearly the entire major companies of the world. The four giant firms established aggressive tax minimization schemes. Such actions led to appliance of at least $US1 trillion in tax revenue which was lost worldwide. While Australian economy lost $50 billion.
Mr Rozvany claims that this figure is much higher than he expected. He said that many account firms are good at international tax avoidance.
Mr Rozvany also claims that there is no control over the sham transfer pricing arrangements.
The expert explained that the greatest concern is transfer pricing behavior, the expert says. It became possible because a transfer pricing expert can very easily dress up a sham transaction as real commercial transaction.
Among such commercial transactions there are service arrangements, intellectual property transfers. Patents or use of patents can be called property transactions as well. Commercial transactions include perceived transfer of goods, sham loans between related parties.
But such actions lead to price which increases over providing all these services. So the incomes are shift to jurisdiction of a lower tax.