Tax Shelters Created by KPMG - Research Paper Example

The case study of Xerox Corpn is taken to highlight the attitude KPMG took in order not to lose one of their clients and were party to incorrect accounting records, which ended in the payments of heavy sums to the IRS towards penalty and accrued taxes. Two mandatory Memorandums that is the Mcnulty memorandum and the Thomson Memorandum have been taken up. The various Tax Saving Schemes like BLIPS, Son of Boss and SC2 are also taken up for detailed study during the course of this study. KPMG is one of the largest auditing firms in the world, and this company is undertaking operations in almost 148 countries all over the world.

It is providing services mostly in the fields of financial and management audit, tax consulting and a myriad of other consultancy services. The name of the company ‘KPMG’, itself expresses its multi-dimensional origin. It was initially in the early part of 1917 that Piet Klyveld proposed to start an audit firm in Amsterdam. During the year 1870, Mr. William Barclay Peat became the Proprietor of an Accounting firm situated in London, which was named William Barclay Peat & Co. In the year 1877, Thomson McLintock opened an accounting firm in Glasgow.

Similarly, a famous American auditor Mr. James Marwick opened an audit firm in New York. In the year 1911, there was an amalgamation of the two firms, M/s. William Barclay Peat & Co. and Marwick Mitchell &Co., and they named the new company - Peat Marwick International (PMI). In 1979, Thomson Mc Lintock formed a company known as KMG (Klynveld Main Geordeler). But it was only in the year 1987, that one of the largest accounting firms in the world, KPMG emerged from the mergers of Thomson McLintock, KMG and Peat Marwick.

After the emergence of KPMG, they never looked back; and they became the leading audit firms providing accounts, audit, and other tax consultation services. KPMG is working for providing good service for their knowledge. These types of working nature provide a clear position in the business world. KPMG realizes that it is their responsibility to help Companies achieve business success. The company builds confidence in their clients and it is this confidence that makes the organizations maintain a good relationship with their investors.

KPMG has designed many tax shelter packages for various industries and they also provide consultation services for these Companies. KPMG maintains good relations with their clients and member firms. KPMG is mainly dealing with tax shelter, and also that it is an enormous body which is providing sufficient help or support to its client members in the matters relevant to the finance sector. KPMG is providing a major portion of its supportive help to the tax shelter industry. KPMG, which signed an agreement, for accepting its role in the tax shelter industry, and the KPMG may also ignore the criminal tax shelter concept.

KPMG employees are very conscious and they are not at all reluctant in respect of their working matters. It is very essential to eliminate an offensive kind of tax shelter. KPMG is the major tax support service providers in the US, by meeting several financial requirements, especially investment matters.