Monday already? Guess we should see what’s going on in the world.
Can someone help me come up with a Vault-Tec joke for this story? Because I know it’s right there.
"As it stands today, Deloitte is not known as a shipbuilder, nor is it clear it could meaningfully contribute to the construction of submarines."https://t.co/5uB3rr3nFr
— Going Concern (@going_concern) September 14, 2024
Speaking of Deloitte, the UK business is finally entering the modern age and extending equal family leave to dads:
Deloitte is to equalise its maternity and paternity leave allowance in a move that it hopes will help to boost the number of women in its senior ranks.
From the start of next year, new fathers who work at the accounting and consulting group will get 26 weeks of fully paid leave, the same as new mothers. At present fathers can take only four weeks off with full pay after the birth of their child.
“The evidence is clear about the impact of unequal parental leave on working mothers’ career progression,” Jackie Henry, Deloitte’s managing partner for people and purpose, said. “We know that key moment of the birth of a child sets expectations and an allocation of responsibilities for the future, and traditionally that has fallen to the mother.”
Anyone else kinda shocked this wasn’t the policy already? Get with the times, Deloitte.
Financial Review puts a former EY partner’s business on blast, much to his chagrin:
A former EY partner who allegedly took $700,000 in secret commissions while setting up illegal tax schemes for wealthy clients can be named as Peter White, after he lost a long court battle to keep his identity a secret.
The Commissioner of Taxation is suing Mr White in the Federal Court, alleging he promoted three illegal tax schemes to seven clients in the five years to April 2021, according to a claim lodged in August last year.
Mr White fought for more than a year to stop The Australian Financial Review naming him. He lost two attempts to keep his name suppressed but appealed both times. Last week, he gave up his right to a third bid and suppression was lifted on Monday morning.
The former big four firm partner identified companies that had significant tax losses, then ran his client’s profits through those companies to wipe out large chunks of tax payable, the Tax Office alleges. The structure is called a tax access loss scheme. Mr White is fighting the case.
LOL @ this Bigfoot in the wild pic they included in the article.
And another piece: EY partner sued by ATO was Bill Papas’ former adviser
White was ousted from EY in 2022.
PwC China sent a memo to its people after the news broke last week they’d be receiving the worst fine a Big 4 firm has ever gotten in China:
PwC is making “tangible investments” to ensure the Big Four firm has high quality and sustainable business in China, it said in a memo to staff after Chinese regulators on Friday hit the company’s mainland unit with a record penalty.
“We want to recognise that this has been an extremely challenging period for all of you,” said the PwC internal memo issued late on Friday after the regulatory penalty announcement, and reviewed by Reuters.
“The PwC network has also shown continued support for our China firm throughout this period … They are making tangible investments to ensure we have long term, high quality and sustainable business in China,” it said.
“I know that the coming weeks will not be easy as we put in place a detailed remediation plan and begin to position the business for future success,” the firm’s new China territory head, Hemione Hudson, said in the memo.
And in a related story, more clients started bailing after the fine came down on Friday:
PricewaterhouseCoopers lost five fund clients in a day, mainland media outlet The Paper reported, after Chinese regulators hit its mainland unit with a six-month suspension and a record fine over the firm’s audit of failed property developer China Evergrande.
“Such a severe penalty will have a major impact on the confidence of PwC’s remaining domestic clients,” said Pingyang Gao, an accounting and law professor at HKU Business School. “It is very likely that there will be a mass exodus. So it will likely spell doom for PwC’s business in China.”
Earlier:
- Layoff Watch ’24: Things Aren’t Looking Good at PwC China [UPDATED]
- China Puts PwC in the Punishment Corner For Six Months and Confiscates ‘Illegal Gains’
Private equity across the pond is hoping to unload an accounting business for $660 million:
The private equity owner of Evelyn Partners is preparing to split up the wealth manager by selling off its professional services arm, as it looks to cash in on a wave of investor interest in the sector.
Permira, the buyout giant, is hoping to fetch more than £500 million by selling the division, which includes the business once known as Smith & Williamson. It provides professional services including accounting and tax advice.
Permira is rumored to be one of the suitors interested in purchasing a stake in Grant Thornton’s UK operations.
The Times teased this in July:
The private equity owner of Evelyn Partners, one of Britain’s largest wealth management companies, is exploring options to sell down its £1.5 billion stake.
Permira is sounding out advisers to sell its majority stake in the business, whose activities also cover professional services from auditing and tax advice to insolvency, as it looks to cash in on a wave of investor interest in the sector.
A deal could take the form of an outright sale or a break-up, with Evelyn’s accountancy business likely to appeal to other private equity buyers given the current strong interest in the sector.
KPMG is moving to a smaller office in San Francisco. The Chronicle writes:
Accounting giant KPMG has committed to a new, 100,000-square-foot office in San Francisco once its current lease for its longtime home on Second Street expires.
The New York-based company announced Friday that it will relocate to 505 Howard St., a 10-story building in the South Financial District known as Foundry Square III, in September 2026. A spokesperson described its new lease as “long-term.”
The deal comes after KPMG in March moved to extend its lease at its current office at 55 Second St., which it has occupied since 2003, on a short-term basis of less than three years. Its future home is located two blocks south, near Salesforce Park.
“Our planned move not only reaffirms our longstanding commitment to the city of San Francisco but also demonstrates our dedication to investing in both our people and capabilities to deliver the most innovative solutions to our clients,” said KPMG’s Chris Cimino, a managing partner in San Francisco, in a statement. “This new building, including nearly 100,000 square feet of space for our teams, will provide a superior in-office experience and foster collaboration and creativity.”
The new office will be almost 40,000 square feet smaller than the one on Second St.
FTX founder Sam Bankman-Fried, who was sentenced to 25 years in prison and ordered to forfeit $11 billion on March 28 of this year, is appealing. Well, his lawyers are:
The lawyers filed papers with the 2nd U.S. Circuit Court of Appeals asking a three-judge panel to reverse Bankman-Fried’s conviction and assign the case to a new judge for a retrial, saying the trial judge “imposed a draconian quarter-century sentence on this first-time, non-violent offender” after they contend he hurried the jury into reaching a one-day verdict to cap off a complex four-week trial.
“Sam Bankman-Fried was never presumed innocent. He was presumed guilty — before he was even charged. He was presumed guilty by the media. He was presumed guilty by the FTX debtor estate and its lawyers. He was presumed guilty by federal prosecutors eager for quick headlines. And he was presumed guilty by the judge who presided over his trial,” the lawyers wrote.
Hartford Business spoke a few bigwigs at Connecticut firms to hear how smaller firms can keep their souls amidst the current wave of private equity investment and merger mania. This is to Drew Andrews, managing partner and CEO of Whittlesey in Hartford:
Firms must embrace new technology that will increase efficiency and workflow, he said, including automation and artificial intelligence, which is already being used in the industry.
“We have to automate processes and stay ahead of technological advancements,” Andrews said. “I’m not just looking at what’s coming down the line next year, I’m looking at 10 years down the road. The firms that don’t modernize will become obsolete.”
Firms would be wise to seek the input of more junior employees on technological advancements.
“The younger generation often has valuable insights into using technology more effectively,” Andrews said.
And that’s the news! Email, text, or tweet if you come across an interesting story or just want to chat. My virtual inbox is always open…because someone keeps forgetting to close the door and any old riff-raff can just wander in.