KPMG under fire over tax shelter scheme

The product, know as 'Blips' did not satisfy tax rules, according to Mark Watson, a former partner in the firm's Washington office. He claimed there was no economic substance behind their complex transactions, the Financial Times reported.

The accusations were made to a congressional panel yesterday, which was told that Blips generated over £1bn (£591m) in unlawful tax benefits for KPMG clients in less than a year.