Irish Tax Inquiry Clears Bank Auditors
PricewaterhouseCoopers and Ernst & Young,
the auditors of two Irish banks forced to pay a tax bill totaling IR£111
million (£87 million sterling) earlier this year for managing bogus
non-resident accounts, have been found innocent of professional misconduct
accusations in the matter by a special investigation. According to Accountancy Age the investigation
was conducted by Prof Ian Percy, former chairman of Scotland's Accounts
Commission, at the orders of the Irish Institute. The article said that a parliamentary committee
had originally conducted an investigation that concluded that PwC as auditors
for Allied Irish Banks failed to provide in the accounts for a potential
DIRT liability on the basis that the bank had agreed an amnesty with the
Revenue Commissioners. But the parliamentary committee insisted that no
such amnesty existed and the bank agreed to a IR£90m (£70
million sterling) tax settlement. E&Y were auditors to the then state-owned
ACC Bank, which agreed to a IR£21 million (£16.5 million)
tax settlement. However, Professor Percy has come to the
conclusion that there was no basis on which any accountant could be prosecuted
for any wrong doing. Deputy prime minister Mary Harney said the report
revealed 'serious weaknesses in the reporting standards of the time' and
confirmed that a new Irish Auditing and Accounting Supervisory Authority,
would be awarded statutory status later this month. .
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