19 PwC tax partners have resigned following the resignation of the PwC tax head Dinesh Kanabar on Saturday December 26. Among the people who quit today are H Kotak, G Mistry and R Dhume – all of whom have joined KPMG. All the resigning partners were originally from RSM.
There is a lot of speculation about the reasons for the resignation of PwC partners.
Gautam Bannerjee, the new PwC chairman, while addressing employees earlier today, said: “… it is the personal aspirations of one or two partners that has resulted in these resignations. .”
One has to remember that almost all of the 19 partners were from RSM… a Rs 100 crore plus tax firm that merged into PwC three years ago.
Dinesh Kanabar’s exit will be a big blow for PwC and a big boost for KPMG… we learn that Dinesh Kanabar will be made deputy CEO at KPMG.the other top partners who have quit like Hiten Kotak, Puneet Shah and Sachin Menon, too, are likely to get good positions at KPMG.
As for PwC, they were in damage control mode the whole day..their response has been quick by announcing the names of the new tax leaders.
Ketan Dalal, one of the few RSM partners to stay back, and Shyamal Mukherjee, a senior at PwC, have been made joint head of tax practice. PwC is
likely to announce a big retention bonus for employees in its effort to prevent them from joining KPMG.