EY and KPMG have gained over half of PwC’s departing corporate clients in China, according to a Reuters report from yesterday, August 15.
Reuters found that over 40 Chinese firms either dropped PwC as their auditor or cancelled plans to hire the firm in recent months.
Chinese regulators have asked several state-owned PwC clients to drop the auditor since at least April, it has been reported.
Reuters found EY had gained at least 12 clients from PwC.
This reportedly includes state-backed financial institutions China Life, PICC and China Cinda Asset Management.
Meanwhile, KPMG has reportedly taken on at least 12 companies from PwC.
The news comes after liquidators from Chinese property firm Evergrande Group are understood to have launched court proceedings against PwC earlier this month.
Chinese authorities have been investigating PwC’s auditing work for Evergrande since earlier this year.
Evergrande was accused by China’s securities regulator in March of overstating its mainland revenues by $78 billion.
MHA censured by UK regulator over client breaches
UK tax advisory firm MHA was publicly censured by the Financial Conduct Authority yesterday, August 15, over rule breaches committed by itself and firms it audited.
According to the FCA’s notice, MHA had failed to prepare four client assets reports between 2015 and 2019.
“The FCA relies on the accuracy of these client assets reports to monitor whether firms are complying with its rules, so it is important that auditors ensure their reporting is accurate,” the UK watchdog said.
MHA further failed to report 25 breaches committed by the firms it audited. These ranged from documentation issues to firms’ assets being held alongside client assets.
“In a first of its kind, this censure underscores the important role that auditors play in providing accurate reports on whether firms are complying with our rules,” said Therese Chambers, joint executive director of enforcement and market oversight at the FCA.
PwC Australia to invest $7.6m to boost AI capability
PwC Australia will invest A$11.5 million (US$7.6 million) over the next year to bolster its AI capabilities, it announced on Monday, August 12.
The firm will launch an AI centre of excellence to help Australian businesses navigate the complexity of AI at scale and compete on the global stage, it has said.
PwC Australia claimed the investment will help create over 30 jobs.
New roles, according to the firm, will span AI business analysis, software engineering, machine learning, data science, transformation, upskilling, change management, AI model validation and risk management.
The AI centre of excellence represents the next phase of the firm’s commitment to AI transformation and trust, PwC Australia CEO Kevin Burrowes said.
Canada publishes draft legislation on global minimum tax
Canada has published draft legislation to impose a global minimum tax on companies whose parent entities aren’t subject to the tax abroad.
The draft legislation was published on Monday, August 12.
It includes a provision to implement the undertaxed profits rule, which will allow Canada to increase taxes on a multinational if its overseas entities pay less than the 15% global minimum tax rate proposed by the OECD’s pillar two rules.
Multinational companies are now subject to pillar two after the landmark reform went live on January 1.
UK national firm appoints ex-EY corporate tax expert
UK multidisciplinary firm Azets has boosted its Scottish corporate tax capabilities with the hire of George Roberts as a partner in Glasgow.
Roberts, who was previously a transactional tax partner at EY, announced the move on LinkedIn on Wednesday, August 14.
The experienced Roberts also spent 13 years as a senior manager for M&A tax at fellow ‘big four’ firm KPMG between 1996 and 2009.
“After four and a half years working with a great team in the funds transaction tax business at EY, I am excited to start a new chapter with Azets,” Roberts said.
Azets has 75 offices across the UK and over 3,800 employees.
ITR benefits
ITR publishes a range of pieces every week on all the most pressing tax matters, covering direct tax, indirect tax, transfer pricing and more.
We offer insights that will give our readers a competitive edge through exclusive interviews, breaking news, analysis, and expert commentary.
Readers can expect all of the above and plenty more. Don’t miss out on the key developments. Sign up for a free trial to ITR.
