BusinessScale of Tesco’s accounting scandal ‘set to be exposed’Cash hit? The SFO could decide to fine TescoChris Radburn/PASimon Neville25 January 2016The scale of Tesco’s accountancy scandal is expected to be laid out this week as the supermarket watchdog reports its findings, according to a senior city analyst.Mike Dennis, retail analyst at Cantor Fitzgerald, said the Serious Fraud office and the Grocery Code Adjudicator is set to announce this week whether charges and fines could be imposed on the supermarket.He also suggested the amount of cash Tesco was, potentially illegally, demanding from suppliers to boost profits could be far higher than initially revealed by the supermarket, leading to the SFO imposing heavy fines.Australian investigators recently fined and restricted supermarket Coles for demanding payments from suppliers to boost profits, in similar fashion to Tesco, and the SFO could impose similar sanctions.Read MoreTesco recalls dog food after plastic found in cansGordon Ramsay: I’ve never seen it so bad for restaurants as it is nowWH Smith hire turnaround veteran with package that could be worth £25mSponsoredRediscover your adventurous side on an exotic getawayDennis suggested Tesco’s “back margin” — cash given from suppliers for preferential treatment in store layouts and promotions — could be as much as £2.4 billion, accounting for 30% of Tesco’s total cash profit.Tesco, the GCA and the SFO declined to comment.MORE ABOUTTescoSerious Fraud OfficeGroceries Code Adjudicator
