He’s an accountant isn’t he?

It’s important to remember that no entity has to report country-by-country reporting data unless its turnover exceeds €750 million.

And how many UK partnerships have turnover exceeding that sum? I can think of four. Let’s call then PWC, Deloitte, EY and KPMG.

What are HMRC saying? Surely they are not doubting the accountancy professions brightest and best on the issue of transfer pricing, are they?

Whatever next?

Wiki tells me that Deloitte, at least, is a private limited company, limited by guarantee.

11 thoughts on “He’s an accountant isn’t he?”

  1. Deloitte Limited is a wholly-owned subsidiary of Deloitte LLP.
    Rely on Companies House – it is better than wiki

  2. Come on now Tim, Ritchie is indeed an accountant. It’s the only claim he has ever made that stands up to scrutiny.

  3. at least one of the Big4 is a loose association of individual country-level partnerships that use the same brand but are owned by the local partners. Not many of the group companies will have turnover at that level (UK, US, some of the larger countries). The complete absence of any reporting from the smaller partnerships will drive Ritchie’s ill-informed tinfoil-hat conspiracy lunacy into “extra grouting” mode

  4. although €750m will probably catch a number of the second-tier firms like Grant Thornton while missing the Big4 – truly Ritchie is the neutron bomb of policy-making; kills the small fry while leaving the big edifices standing

  5. PwC will report most of their uk revenue as being in the uk (apart from their equity stake in the middle east). The rest of the global firm are individual country partnerships who will similarly report all their revenue in their respective countries the same as they do now and publish on the web. There is literally no point in this as PwC already effectively discloses country by country revenue via the individual partnerships accounts on the web

  6. From Deloitte’s (Ritchie’s old firm, I believe) website:

    “Deloitte” is the brand under which tens of thousands of dedicated professionals in independent firms throughout the world collaborate to provide audit, consulting, financial advisory, risk management, tax, and related services to select clients. These firms are members of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”). Each DTTL member firm provides services in particular geographic areas and is subject to the laws and professional regulations of the particular country or countries in which it operates.

    Each DTTL member firm is structured in accordance with national laws, regulations, customary practice, and other factors, and may secure the provision of professional services in its territory through subsidiaries, affiliates, and other related entities. Not every DTTL member firm provides all services, and certain services may not be available to attest clients under the rules and regulations of public accounting.

    DTTL and each DTTL member firm are legally separate and independent entities, which cannot obligate each other. DTTL and each DTTL member firm are liable only for their own acts and omissions, and not those of each other. DTTL (also referred to as “Deloitte Global”) does not provide services to clients.

    As always, Ritchie is unencumbered by fact.

  7. He knows he is wrong.
    I know from experience of working at 2 of the big 4 that you cannot get through the first week at these places without being beaten round the head with a cluebat until you can say off by heart: “each member firm is a separate and independent legal entity”.
    It is inconceivable that an alum does not know this. He is playing to his gallery.

  8. @Gary – it’s completely conceivable that he doesn’t know that, or that he’s convinced himself from first principles that what he once knew must be wrong because it contradicts his Weltanschauung

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