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KPMG - Isle of Man tax scandal

Tax dodging and privatization win-win for KPMG

For KPMG, helping the wealthy dodge taxes and pushing privatization are a big win-win. Success in one area generates lucre in the other.

While best known for accounting, KPMG has diversified into other areas, including advising governments and corporations on privatizing public services.

In 2015, investigative journalists at CBC revealed that wealthy individuals were paying almost no tax, thanks to a sleazy tax haven scheme set up by KPMG. But that’s only half the story.

When KPMG is successful at helping the wealthy dodge taxes, government revenues drop. It becomes harder for governments to fund public services.

And when the privatization industry suggests governments address their revenue shortage by privatizing public services, KPMG gets more contracts!

But what about the facts showing privatization actually costs more? KPMG simply produces some “facts” of its own. The firm’s value-for-money reports can be counted on to show privatization is cheaper -- even for privatization schemes like the Ontario P3s that turned out to cost $8 billion more than staying public, according to the provincial Auditor General.

NUPGE’s privatization playbook made the link between cutting taxes and privatization. Now KPMG is showing that, regardless of what position it’s playing, it’s always offensive.