The company will be placed on parole and not in court for being under the conditions of a deferred prosecution agreement. The agreement also decides on an independent investigation by the US tax authorities. KPMG agreed yesterday to pay $456 million (£255 million) to settle allegations that it has encouraged illegal tax havens and avoided potentially devastating lawsuits. KPMG`s U.S. operations must pay $456 million (€373 million) in fines and fines, cease certain tax work and allow an external consultant to monitor its behavior. The Deferred Prosecution Agreement, approved by KPMG`s U.S. Board of Directors, stipulates that the Registry assumes responsibility for violations resulting from the actions of certain tax partners and employees between 1996 and 2002. A factual statement annexed to the agreement states that the illegal conduct of KPMG`s partners included making false and fraudulent tax returns for clients and concealing tax evasion plans from the tax evasion system. On July 17, 2007, Judge Kaplan dismissed the charge against 13 former KPMG employees and ruled that he had no alternative because the government had heavily armed KPMG to not pay the defendants` attorneys` fees and violate their rights.
 “This indictment accuses serious crimes. They should have been tried on the merits as for any defendant,” Kaplan wrote. John Larson and Robert Pfaff, the other two ex-partners who are still charged, left KPMG eight years before the criminal complaint was filed and initially did not attempt to get the audit firm to pay their legal bills. (WASHINGTON, D.C.) Earlier in the day, the U.S. Department of Justice announced that audit firm KPMG had admitted to criminal misconduct that cost the U.S. more than $2.5 billion in taxes. KPMG concocted Tax Shelter`s transactions and filed false and fraudulent tax returns, claiming false tax losses. In a deferred lawsuit agreement, KPMG will pay $456 million in fines, refunds and penalties and agree to several restrictions on future operations. .