KPMG partners in Belfast on administrative leave

KPMG has placed the four men on administrative leave – the company said that it has not received “any indication that this investigation relates to the business of KPMG or the business of our clients”.

A property investment vehicle established by four KPMG partners who are under investigation by HM Revenue & Customs in Northern Ireland is now believed to be part of the inquiry.

Around 50 officers from HMRC in Northern Ireland are understood to have powers of arrest, but these can only be used for suspected HMRC-related offences, principally around tax evasion, fuel-laundering and internal governance.

According to a BBC report in 2011, the firm suffered major losses due to the property crash. Donaghy is the head of KPMG’s tax practice in Belfast.

In a statement the firm said: “Pending further information and enquiry, we can confirm that four partners in our Belfast office are on administrative leave”. It is not clear whether the HMRC investigation relates to the company. The move is to allow the province to compete more effectively with the Irish Republic, which has been successful in attracting multinational corporations with its low tax rates.

Meanwhile three of the men – D’Arcy, Donaghy and O’Brien – were due to attend the accountancy profession’s biggest dinner of the year in Belfast City Hall on Thursday evening.

HMRC confirmed the arrest of four individuals in Belfast, but said it could not comment further.