KPMG admits misconduct in BNY Mellon reports
KPMG and the firm’s partner, Richard Hinton, admitted to misconduct over the audit work the firm carried out for BNY Mellon, the United Kingdom’s Financial Reporting Council (FRC) said this month. A probe into the 2011 reports on client assets held by the bank and its London branch revealed that the firm and Hinton failed to give adequate consideration on whether the records of custody relationships maintained by BNY Mellon were compliant with certain rules, the FRC said. The accounting watchdog issued new guidance for client assets reports in 2011. “We accept and regret that our work did not fully reflect all aspects of this new guidance,” KPMG said in an email to Reuters. A disciplinary tribunal will be convened to decide what sanctions should be imposed.
Hotpot chain shares soar in Hong Kong debut
Hotpot restaurant chain Haidilao saw its shares climb as much as 10 percent in early trading as it made its debut on the Hong Kong stock exchange on 26 September. Shares opened at HK$18.80, up from an initial public offering price of HK$17.80 – the top end of its target range – and reached HK$19.64 at one point. Haidilao's stock closed at HK$17.82 per share. Haidilao owns more than 300 restaurants in Mainland China as well as branches in Japan, Singapore, South Korea and the United States. It is known for its Sichuan-style hotpot and for offering board games and manicures to customers waiting to get a seat.
Apple pays Ireland more than €14 billion taxes
Ireland’s government has collected €14.3 billion in back taxes and interest from Apple, which it will hold in an escrow fund pending the company’s appeal against a European Union tax ruling, media reported this month. The European Commission ruled in August 2016 that Apple had received unfair tax incentives from the Irish government, allowing the company to pay a maximum tax rate of 1 percent instead of the usual corporation tax rate of 12.5 per- cent. The tech giant and Dublin are appealing against the ruling, saying the tax treatment was in line with Irish and EU law.
Hong Kong banks share customer details in global anti-tax evasion scheme
More than 1,700 financial institutions in Hong Kong have submitted account details to local authorities of customers who are tax residents of 75 jurisdictions in a bid to clamp down on tax evasion, the South China Morning Post reported this month. The city will send information annually to local tax authorities in 50 of the jurisdictions, with which it has agreements. The first exchange is set to take place end of this month. Mabel Chan, immediate past president of the Institute, urged financial account holders in the city who are tax residents elsewhere to seek advice from professional consultants on their liabili- ties, reported the SCMP. “This [would be especially important] for those from jurisdic- tions implementing worldwide tax, such as China,” Chan said.