Finance

KPMG sued for more than £6m by property company

KPMG has reportedly been sued for more than £6m by property company Mount Anvil, which said it was hit with a large tax bill after the Big Four firm gave it negligent advice.

Homebuilder Mount Anvil said an HMRC probe into one of its subsidiaries uncovered £3.9m extra tax liabilities in 2017, The Financial Times reported, citing documents filed at the High Court.

KPMG and Mount Anvil were contacted for comment.

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KPMG prepared tax returns for the property company and its subsidiaries for the five financial years to 2016.

Mount Anvil launched the High Court claim against KPMG in March, according to court filings.

The company is claiming for £3.9m in additional tax liability it said it incurred because of KPMG’s negligence, and additional borrowing costs of £1.8m for which it also blamed the firm. In addition, it is claiming a further £290,000 which it paid to KPMG for dealing with HMRC, plus £40,000 paid to audit firm RSM for dealing with tax officials about potential penalties for filing incorrect tax returns, the report said.

Mount Anvil ultimately did not face additional charges from the taxman.

The case is the latest legal wrangle for KPMG which is also facing a potential lawsuit from the UK government agency unwinding outsourcer Carillion’s affairs.

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The results of a probe from the Financial Reporting Council into KPMG’s work for Carillion before its 2018 collapse are also expected shortly.

It is also being investigated for its audits of engine maker Rolls-Royce and Bargain Booze-owner Conviviality.

To contact the author of this story with feedback or news, email James Booth

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