INDEX / DIRECTORY / KPMG / ECONOMIC

KPMG ECONOMIC

ECONOMIC AUDIT UPDATED 2026-10-13
Economic Score 9.00 /10 A KPMG - Complicity Index 816
Economic 9.00

Evidence-only forensic audit. Scoring happens downstream - see the main dossier for the composite assessment.

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Research cut-off: 13 October 2026.

2026 (current): KPMG is a global organization of separate legal entities. KPMG International Limited is an English private company limited by guarantee that coordinates the network and does not provide professional services to clients; KPMG states that member firms are generally locally owned and managed and remain responsible for their own obligations.1 KPMG Israel is Somekh Chaikin, which its April 2026 privacy notice identifies as a registered Israeli partnership and KPMG member firm.2 Israeli operational and client findings below are therefore attributed to Somekh Chaikin/KPMG Israel unless a source expressly concerns KPMG International or the wider organization.1, 2

2025–2026 authoritative screening: The 26 September 2025 OHCHR settlement-business database contains the current Annex I list and applies a reasonable-grounds factual-assessment standard; exact-name review did not identify KPMG or Somekh Chaikin.3 The 2025 A/HRC/59/23 report was also reviewed and did not identify KPMG/Somekh Chaikin by name in the retrieved text.4 The 2024 and 2025 Don’t Buy Into Occupation materials and PAX’s June 2024 arms-finance report were reviewed for direct KPMG/Somekh Chaikin naming; no direct target listing was identified.5, 6, 7 These are target-name findings only and do not establish that KPMG has no commercial relationship with companies appearing in those reports.

Israeli nexus and controlling principals

2026 (current): Somekh Chaikin is an Israeli registered partnership, and KPMG Israel lists its Tel Aviv office at KPMG Millennium Tower, 17 Ha’arba’a Street.2, 8 A March 2025 PCAOB order independently identifies Somekh Chaikin as a public accounting firm headquartered in Tel Aviv, as a KPMG International member firm, and states that KPMG Israel was registered with the PCAOB during the period covered by the order.9 KPMG Israel reports about 1,700 multidisciplinary experts and lists branch offices in Tel Aviv, Jerusalem, Beersheba and Haifa.10, 8 KPMG Israel currently states that clients in Israel have trusted the firm for more than 100 years.11

2026 (current): Gad Somekh is Chairman of Somekh Chaikin and active in KPMG’s International Council; Eran Shalev is CEO/Managing Partner of KPMG Israel.12, 13 The reviewed current sources do not disclose a partner-by-partner ownership table or a ≥10% beneficial owner. KPMG states generally that member firms are locally owned and managed, but this is not an ownership register for Somekh Chaikin.1 no public evidence identified in the reviewed sources of Israeli Preferred Technology Enterprise status, Israeli state ownership, or a current material personal/family-office Israeli investment by these principals that could be quantified here.1, 2, 12, 13

Supply Chain & Sourcing Relationships

Direct supplier relationships

2026 review: no public evidence identified that KPMG International or Somekh Chaikin directly sources agricultural products from Mehadrin, Hadiklaim, Galilee Export, Agrexco successors or comparable Israeli produce exporters. The target’s documented Israeli business is professional services including auditing, tax, consulting, technology and government advisory.10, 14, 15

Importer of record

2026 review: no public evidence identified of a KPMG-owned or controlled importer-of-record entity for physical goods originating in Israel or occupied territory. Somekh Chaikin is documented as an Israeli professional-services partnership.2, 9

Seasonal sourcing

2026 review: no public evidence identified of recurring or counter-seasonal Israeli produce procurement by KPMG/Somekh Chaikin.10, 15

Third-party and indirect sourcing

2026 review: no public evidence identified that Israeli-origin agricultural or consumer goods reach KPMG through a retail, private-label, reseller or distribution chain of the type covered by this category.10, 15

Product Origin, Labeling & Regulatory Compliance

Settlement-origin products

2025–2026 review: no public evidence identified that KPMG/Somekh Chaikin sells physical goods labelled Produce of Israel or has received a customs/DEFRA/regulatory finding concerning settlement-origin product labelling. Its documented Israeli operations are professional services.2, 10, 14, 15

Labeling compliance

2025–2026 review: No public enforcement action or compliance finding concerning KPMG/Somekh Chaikin and country-of-origin labelling for settlement-produced goods was identified in the reviewed material.3, 4, 5, 6

Corporate labeling policy

2026 review: No public KPMG Israel policy specifically governing the sourcing or country-of-origin labelling of physical goods from occupied or contested territories was identified.10, 14, 15

Investment, Capital & Financial Exposure

Direct operating investment and acquired Israeli businesses

August 2025: CTech reported that KPMG acquired the operations of Israeli SAP/AI company Q.V. Technologies; founder Ronen Argov separately stated that Q.V. Technologies had joined KPMG Israel.16, 17 The Jerusalem Post reported that the purchase price was not disclosed and cited an industry estimate of NIS 10–20 million.18 The sources describe an acquisition of Q.V.’s operations but do not disclose an exact equity percentage, so the evidence is insufficient to classify Q.V. as a wholly owned legal subsidiary. Revenue, headcount and a manufacturing footprint were also not disclosed. Q.V. is described as a technology/SAP solutions company; no public defence, IDF or settlement nexus was identified in the reviewed sources.16, 17, 18

2024–2025: Reporting on the Q.V. transaction says it followed KPMG Israel mergers with Carmi Yeda/Karmi Knowledge, an innovative-learning and organizational-development business, and AL Consulting, an organizational consultancy.16, 18 The reviewed sources do not disclose their transaction prices, precise ownership percentages, employee/revenue scale or a defence/settlement nexus.16, 18

R&D and innovation centres

2025: CTech reported that KPMG Israel operated a technology R&D centre staffed by hundreds of experts working in AI, cloud, cybersecurity, data, digital transformation and SAP.16 KPMG Israel’s current technology page separately documents services to technology companies including Israeli tax filings and assistance with Israel Innovation Authority incentives and grants; that service description does not establish that KPMG itself receives an Innovation Authority grant.15

Parent and beneficial ownership flows

2026 (current): KPMG International is not disclosed as a corporate parent owning Somekh Chaikin. KPMG says member firms are separate legal entities and generally locally owned and managed; KPMG International coordinates the network but does not provide client services.1 Somekh Chaikin’s exact internal partner capital percentages were not identified in the reviewed public sources.1, 2

Portfolio and fund exposure

2026 review: no public evidence identified that KPMG International or Somekh Chaikin, as an entity, holds a material disclosed portfolio of Israeli listed equities, Israeli sovereign bonds or an Israel-focused investment fund.1, 2, 4, 5

Financing the State / financial-sector activity

2026 review: Somekh Chaikin is an audit and advisory firm rather than a bank, insurer or asset manager in the reviewed sources.10, 19 no public evidence identified that Somekh Chaikin underwrites Israeli sovereign debt or war bonds, sells Israel Bonds, directly lends to Israeli defence primes, or provides trade-finance facilities to OHCHR-listed companies.10, 19, 3, 7

2025–2026, current client relationships: A 2026 SEC N-PX filing records Bank Hapoalim’s 21 August 2025 shareholder item to reappoint Somekh Chaikin (KPMG) and Ziv Haft (BDO) as joint auditors, documenting Somekh Chaikin’s incumbent audit role in 2025.20 Bank Leumi’s primary 2025 consolidated financial statements, disseminated through the Tel Aviv Stock Exchange, identify Somekh Chaikin/KPMG and Brightman Almagor Zohar/Deloitte as joint independent auditors; the report is dated 2 March 2026 and identifies Israel Eliahu of Somekh Chaikin as an engagement partner.21 OHCHR’s 26 September 2025 database lists Bank Hapoalim Ltd. and Bank Leumi Le-Israel Ltd. in Annex I for activities (e), (f) and (g); OHCHR defines those categories as services/utilities supporting settlements, banking/financial operations helping to develop, expand or maintain settlements, and use of natural resources for business purposes.3 These documents establish KPMG Israel audit relationships with two OHCHR-listed banks; they do not establish that KPMG itself carried out the banks’ listed settlement activities.3, 20, 21

Temporal evidence: The 2025/2026 bank-audit relationships and the 2025 OHCHR listing post-date 19 July 2024 and November 2024, the constructive-notice dates specified in the audit brief.3, 20, 21

Client-level fee disclosure

2025: InterCure’s 2026 Form 20-F identifies Somekh Chaikin as its independent registered public accounting firm and discloses NIS 1.390 million in total 2025 audit, audit-related and tax fees, compared with NIS 1.485 million in 2024.22 This is one client-level disclosure and is not KPMG Israel’s aggregate Israeli revenue.22

Controlling principals

2026 review: Current KPMG biographies document Gad Somekh’s chairmanship/advisory work and Eran Shalev’s CEO/Managing Partner role, but the reviewed current sources do not disclose a material personal or family-office investment by either principal in an Israeli company that can be quantified for this audit.12, 13

Settlement nexus

2025–2026 review: No direct KPMG/Somekh Chaikin office, facility, procurement contract, sourcing operation or identified service location in a West Bank settlement, East Jerusalem settlement or Golan settlement was found in the reviewed sources.8, 3, 4, 5, 6 The documented relationship to settlement-listed entities is the audit work for Bank Hapoalim and Bank Leumi; no inference is made that the location or subject matter of KPMG’s audit work itself was in a settlement.3, 20, 21

Operational Presence & Market Activity

Physical footprint

2026 (current): KPMG Israel reports approximately 1,700 experts.10 Its accessibility page lists four branch offices: Tel Aviv at 17 Ha’arba’a Street, Jerusalem at 8 Hartoum, Beersheba at 31 Shazar Boulevard and Haifa at 7 Nachum Het.8 A March 2025 PCAOB order independently describes Somekh Chaikin as headquartered in Tel Aviv.9

Employment and tax/regulatory registration

2026 (current): The KPMG Israel site reports about 1,700 experts.10 KPMG Israel’s April 2026 privacy notice identifies Somekh Chaikin as a registered Israeli partnership and describes compliance with Israeli privacy legislation.2 The PCAOB’s March 2025 order states that KPMG Israel was registered with the Board during the period covered by its 2021–2023 findings; the accessible replacement source does not establish the firm’s exact current PCAOB status in October 2026.9 No aggregate Israeli income-tax payment figure was identified.2, 10

Government activity

2026 (current): KPMG Israel says its government team works with governmental bodies and government offices and delivers services through framework tenders in planning/policy, technology, digital solutions, budgeting and finance.14

24 September 2026: An Israeli Accountant General procurement page for regulatory-policy consulting lists Somekh Chaikin, tax number 540002383, among several suppliers for an engagement running 16 September 2026 to 31 March 2027.23 The page displays NIS 65 million on each supplier entry; because the same sum is repeated across multiple suppliers, the record does not establish NIS 65 million as KPMG’s individual fee.23

23 September 2026: A Welfare Ministry record describes a no-additional-cost extension with KPMG/Somekh Chaikin for data infrastructure and projects intended to improve welfare-sector regulation under central tender 02/2018 and displays NIS 830,539.24 The page displays a start date of 15 October 2026 and an end date of 14 September 2026, an internal inconsistency left unresolved here.24

19 May 2026: A Justice Ministry procurement record lists Somekh Chaikin in an extension with MNS and EY to use an existing balance with zero additional budget, covering 6 May 2026 to 5 May 2027.25

2022–2023: A Central Bureau of Statistics procurement record dated 21 September 2022 extended work with Somekh Chaikin to complete stages of an internal-audit risk survey, with a displayed value of NIS 127,682 and engagement dates 12 September 2022 to 10 September 2023.26

Market positioning

2021–2026 evidence: KPMG Israel reports approximately 1,700 experts and says its finance clientele includes major banks, credit-card companies and investment houses.10, 19 Its government practice describes work across Israeli government offices.14 The March 2025 PCAOB order states that during the 2021–2023 period covered by the order, KPMG Israel reported annually serving as principal auditor for between 12 and 20 issuer clients.9 No verifier-accessible source was identified during this repair supporting the previously cited Duns 100 claim that KPMG ranked fourth with 107 listed-company audit clients in 2026, so that claim is not retained.

Corporate Structure & Foundational Ties

Founding and incorporation history

2026 (current statement): KPMG Israel says its approach has been trusted by clients across industries and communities in Israel for more than 100 years.11 Somekh Chaikin is currently identified by KPMG as an Israeli registered partnership.2 No exact legal formation or original-incorporation date was established from the verifier-accessible sources retained in this audit.2, 11

Headquarters and domicile

2026 (current): Somekh Chaikin is an Israeli registered partnership and KPMG lists its Tel Aviv office at KPMG Millennium Tower, 17 Ha’arba’a Street.2, 8 The PCAOB’s March 2025 order independently describes Somekh Chaikin as headquartered in Tel Aviv and as a member firm of the KPMG International Limited network.9 KPMG International Limited is an English private company limited by guarantee and coordinating entity, rather than the corporate owner/operator of the Israeli member firm.1, 2

State and institutional linkages

2022–2027 documented periods: Public procurement records establish advisory/consulting engagements with Israeli government bodies including the Ministry of Finance/Accountant General, Ministry of Welfare, Ministry of Justice and Central Bureau of Statistics.23, 24, 25, 26 no public evidence identified in the reviewed sources of Israeli state equity ownership in Somekh Chaikin, a government-appointed KPMG Israel board member, or designation of KPMG Israel itself as critical national infrastructure.1, 2, 14

Structural governance features

2026 (current): no public evidence identified of a state golden share, founder share or charter restriction tying Somekh Chaikin to Israeli state policy.1, 2 KPMG’s global rules nevertheless establish network governance: member firms agree to common values, quality standards and KPMG International policies while remaining separate legal entities responsible for their own obligations.1

Profit Repatriation & Economic Contribution

Revenue attribution

2026 review: No public aggregate figure for KPMG Israel/Somekh Chaikin revenue attributable to Israel was identified in the reviewed sources.2, 10 InterCure’s NIS 1.390 million 2025 fee disclosure provides a verifiable client-level example but cannot be extrapolated to firm revenue.22

Profit flows

2026 review: no public evidence identified quantifying profit repatriation from Somekh Chaikin to KPMG International or another foreign parent.1, 2 KPMG’s legal-structure disclosure says KPMG International is a coordinating entity and member firms are separate and generally locally owned and managed; it does not disclose how Somekh Chaikin distributes partner profits or pays network charges.1

Economic ecosystem role

2021–2027 evidence: KPMG Israel reports about 1,700 experts; its government and financial-services pages describe work across government offices and major financial institutions.10, 14, 19 The PCAOB reported that during 2021–2023 KPMG Israel said it annually served as principal auditor for between 12 and 20 issuer clients.9 Current procurement records confirm Israeli government consulting relationships extending into 2027.23, 24, 25

Footnotes

  1. https://kpmg.com/xx/en/about/governance.html ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8 ↩9 ↩10 ↩11 ↩12 ↩13

  2. https://kpmg.com/il/en/misc/privacy.html ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8 ↩9 ↩10 ↩11 ↩12 ↩13 ↩14 ↩15 ↩16 ↩17 ↩18

  3. https://documents.un.org/api/symbol/access?l=en&s=A%2FHRC%2F60%2F19&t=pdf ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8

  4. https://www.un.org/unispal/document/a-hrc-59-23-from-economy-of-occupation-to-economy-of-genocide-report-special-rapporteur-francesca-albanese-palestine-2025/ ↩ ↩2 ↩3 ↩4

  5. https://paxforpeace.nl/publications/dont-buy-into-occupation-2025/ ↩ ↩2 ↩3 ↩4

  6. https://paxforpeace.nl/publications/dont-buy-into-occupation/ ↩ ↩2 ↩3

  7. https://paxforpeace.nl/publications/the-companies-arming-israel-and-their-financiers/ ↩ ↩2

  8. https://kpmg.com/il/en/misc/accessibility.html ↩ ↩2 ↩3 ↩4 ↩5

  9. https://assets.pcaobus.org/pcaob-dev/docs/default-source/enforcement/decisions/documents/105-2025-011---kpmg-israel.pdf ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7

  10. https://kpmg.com/il/en/about.html ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8 ↩9 ↩10 ↩11 ↩12 ↩13 ↩14

  11. https://kpmg.com/il/en/insights/make-the-difference.html ↩ ↩2 ↩3

  12. https://kpmg.com/il/en/contacts/s/gad-somekh.html ↩ ↩2 ↩3

  13. https://kpmg.com/il/en/contacts/s/eran-shalev.html ↩ ↩2 ↩3

  14. https://kpmg.com/il/en/industries/government.html ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7

  15. https://kpmg.com/il/en/industries/technology.html ↩ ↩2 ↩3 ↩4 ↩5 ↩6

  16. https://www.calcalistech.com/ctechnews/article/bjoooe8dge ↩ ↩2 ↩3 ↩4 ↩5

  17. https://www.linkedin.com/pulse/sixteen-years-one-journey-new-beginning-kpmg-israel-ronen-argov-rfxte ↩ ↩2

  18. https://www.jpost.com/business-and-innovation/article-864029 ↩ ↩2 ↩3 ↩4

  19. https://kpmg.com/il/en/industries/financial-services.html ↩ ↩2 ↩3 ↩4

  20. https://www.sec.gov/Archives/edgar/data/2008516/000110465926103020/xslNPX-INFO-TABLE_X01/proxytable.xml ↩ ↩2 ↩3 ↩4

  21. https://mayafiles.tase.co.il/rpdf/1725001-1726000/P1725859-00.pdf ↩ ↩2 ↩3 ↩4

  22. https://www.sec.gov/Archives/edgar/data/1857030/000149315226020743/form20-f.htm ↩ ↩2 ↩3

  23. https://www.mr.gov.il/ilgstorefront/en/p/4000622226 ↩ ↩2 ↩3 ↩4

  24. https://www.mr.gov.il/ilgstorefront/he/p/4000622175 ↩ ↩2 ↩3 ↩4

  25. https://mr.gov.il/ilgstorefront/ar/p/4000617263 ↩ ↩2 ↩3

  26. https://mr.gov.il/ilgstorefront/he/p/4000558368 ↩ ↩2