E&Y defends tax consultants in Transocean tax fraud case

Posted By: Religare
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E&Y defends tax consultants in Transocean tax fraud case
Auditing firm Ernst & Young has defended both its tax consultants accused in the Norwegian tax evasion case where the company was charged with gross tax fraud and breaches of accounting law in connection with the sale of 12 rigs to Cayman Islands-registered companies by its Norwegian subsidiaries against rig giant Transocean.

Two tax consultants from the Norwegian branch of auditor Ernst & Young are accused of gross negligence having aided and abetted the company Transocean in providing incorrect or incomplete information to the tax authorities in the period from 2000 to 2002.

E&Y has maintained that the employees have followed the rules and regulations to the books and have done nothing wrong.

Houston-based Transocean's own estimates indicate that it may have to fork out $560 million plus interest in a worst-case scenario.

Two days ago, Norway's financial crimes unit had filed charges of tax evasion against rig giant Transocean after an exhaustive six-year investigation.

However, the drilling contractor Transocean had announced that the company would continue to co-operate with authorities following a court ruling on documents seized from lawyers during a tax investigation of its former Norwegian unit.

Read more about: tax, fraud, norwegian
Story first published: Friday, June 24, 2011, 13:31 [IST]
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