ASIC uncertain whether KPMG’s Shipton tax advice covered options
The Australian Securities and Investments Commission (ASIC) has told a Parliamentary Committee that it does not know whether executive options formed any part of the tax advice provided by KPMG and initially paid for by the regulator, prompting ASIC chairman, James Shipton to stand aside.
While an independent investigation was still underway into the circumstances around the payment of Shipton’s $118,000 tax advice bill, ASIC had told a Parliamentary Committee that it was only the advice that was paid for.
“ASIC did pay KPMG for taxation advice and assistance relating to the taxation of Mr Shipton’s personal financial circumstances upon his relocation from the US to Australia,” the regulator told the House of Representatives Standing Committee on Economics.
“ASIC is not aware of the precise nature of Mr Shipton’s personal financial circumstances, including whether executive options are a component of those circumstances.”
In answer to another committee question on notice, it said that ASIC did not pay any costs other than the costs of tax advice and assistance for Shipton.
“No penalty notices or costs unrelated to tax advice and assistance were paid by ASIC. The Auditor-General’s letter to the Treasurer dated 22 October, 2020 (attached to the Treasurer’s media release of the same date), refers to KPMG invoices describing ‘assistance in respect of resolution of Massachusetts State tax notices and penalties due to late filing of 2017 Massachusetts state tax return’,” ASIC said.
“The assistance described above was advice about penalties and assistance in relation to the penalties related to the filing of the relevant tax return.”
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