Carlton boss Luke Sayers under fire at Senate hearing over PwC selling secret tax advice for profit
Embattled Carlton president Luke Sayers’ explanation about his knowledge of the PwC scandal has been smashed apart in a Senate hearing.
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Embattled Carlton president Luke Sayers’ explanation about his knowledge of the PwC scandal has been smashed apart in a Senate hearing.
Mr Sayers’ actions were put under the microscope in Canberra the morning after the Carlton boss was seen at Crown’s Palladium Room attending the Brownlow Medal.
PwC staff were accused of selling secret government tax advice to its clients for profit while Mr Sayers was the firm’s chief executive, however he was not directly involved.
The high-priced consultant, who is friends with Victorian Premier Daniel Andrews, had claimed he did “not recall” being told by the Australian Taxation Office to read emails about a “breach of confidentiality” at the heart of the scandal.
ATO second commissioner, Jeremy Hirschhorn, who met with Mr Sayers three times over 2019 and 2020, appeared before a Senate committee on Tuesday.
Mr Hirschhorn told parliament that Mr Sayers was warned about the alleged rorts, including the confidentiality breaches.
“I think it is fair to say that within the emails there are multiple references … to confidentiality agreements,” he told parliament.
Senator Barbara Pocock, questioning Mr Hirschhorn during the committee hearing, said it was “absolutely implausible” that Mr Luke Sayers had no knowledge of confidentiality breaches.
Mr Hirschhorn said of Mr Sayers he would have expected “that as a senior leader of a large firm, following those meetings a comprehensive review would have been done, to be blunt, if not when they were originally provided.”
“If I was providing information to a regulator I would have liked to know what I was providing,” Mr Hirschhorn said.
Mr Sayers also discussed PwC’s planned appointment of Tom Seymour as his replacement as chief executive.
Mr Hirschhorn said he thought the questioning was “inappropriate”.
“I am not sure if he was trying to test the waters as to how we would respond to the appointment of Tom Seymour as CEO,” Mr Hirschhorn said.
Mr Seymour had been the head of tax at PwC when secret government advice was sold for profit, which he had been sent details of via email.
He resigned in May and apologised to a Senate hearing over the breaches.
The Australian Federal Police are now investigating the allegations.
This masthead is not suggesting any wrongdoing or that Mr Seymour and Mr Sayers were part of the inquiry, only that the allegations are being investigated.
Mr Sayers, who also counts billionaire Lindsay Fox as a backer, has been under siege since damaging claims about PwC were revealed earlier this year.
However, there have been reports he may seek an extension to his role as Carlton beyond his current term.
Mr Sayers said in a statement in August: “I did not personally review the tens of thousands of documents and emails which PwC provided to the ATO as part of these processes, nor do I recall that being suggested to me by the ATO. I was working through a number of issues with the ATO, but a breach of a confidentiality agreement was not one of them.”
Senator Deborah O’Neill told the senate committee “ethics were jettisoned” when Mr Sayers was chief executive of PwC.
Ms O’Neill said there was “no possibility” that Mr Sayers was not aware of the tax scandal while he was chief executive.
Mr Sayers now runs his own consulting firm, Sayers Group, which won a $682,000 contract to advise how to rebuild the Shane Warne Stand at the MCG.
stephen.drill@news.com.au
Originally published as Carlton boss Luke Sayers under fire at Senate hearing over PwC selling secret tax advice for profit
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