Tax dodgers Boston Consulting Group and McKinsey Australia have declined to appear before the Senate inquiry into consultants (the PwC tax leaks inquiry). What’s the scam?
The scam they should both be held in Contempt of Parliament. The two American consultancy groups earn hundreds of millions from consulting to Australian governments but, when it’s their turn to be accountable, shirk it.
The most recently filed financial statements for McKinsey Pacific Rim (filed late) show bonuses of $148m, revenues of $439m and a tax “benefit” of $9m. To be fair they booked a tax expense of $18m in the previous year which was a big year at $478m in revenue but it looks like both firms require a good-hard-consulting from the Australian Tax Office.
Boston has already been investigated by the ATO and forced to pay back $36m and both companies charge out heavily for consulting to themselves. This is probably seconding experts from other regions for a job but the remuneration stuff in the financials looks to have a distinctly piquant aroma about it.
Bad Manager: is Boston Consulting really consulting consultants?
Michael West established Michael West Media in 2016 to focus on journalism of high public interest, particularly the rising power of corporations over democracy. West was formerly a journalist and editor with Fairfax newspapers, a columnist for News Corp and even, once, a stockbroker.