Strategies for Change

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Case Study – Ethics are moral principles or beliefs about what is right or wrong and guide individuals in their dealings with other, within groups (stakeholders), and provide a basis for deciding whether a particular decision or behavior is right or proper. Go online to this site and report on one case of corporate fraud the government reported. Then write at least 350 words on the case and the ethics violations you see took place within the company you chose: http://www.irs.gov/uac/Compliance-&-Enforcement-News On their website, The Washington Ethical Society (2013) defines ethics as “the elements essential to human well-being and proposes principles to be used as guidelines for generating an ethical culture”. They go on to say…show more content…
The ethics violations in this case are many, the creation of bogus tax shelters and the fraudulent filing of tax returns being the obvious. Additionally, the case outlines that KPMG’s personnel “took specific steps to conceal the existence of the shelters from the IRS” (IR-2005-83, 2013). Later in the case, it points out that KPMG was warned by its own tax experts and others that the tax shelters were questionable, but the top leadership at KPMG did not heed these warnings. In other words, KPMG not only knowingly participated in defrauding the IRS and reducing the overall tax income of our federal government, money which could have been used for any number of services to the people of the United States, they took steps to cover up their wrong-doing and disregarded the warnings from experts. As a result of the investigation and eventual agreement between KPMG and the IRS, KPMG’s tax practice was restricted and they were to pay $456 million in fines. This case is a clear example of ethics violations as it relates to tax avoidance and abuse of the law. As IRS commissioner, Mark Everson, states in the case “We simply can’t tolerate abuse of the law and professional obligations by tax practitioners”. He goes
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