PwC puts 9 partners on indefinite leave and two chairs stand down as firm faces tax leak crisis

The professional services giant has put nine partners on indefinite leave, while two of the group’s top members have stepped down from their jobs.

Embattled professional services giant PricewaterhouseCoopers has put nine partners on indefinite leave, while two of the group’s top members have stepped down from their jobs, as the firm faces public anger for its use of confidential government tax briefings to enrich clients.

It comes as the government continues its review into PwC’s breach of confidentiality to offer its clients strategies to avoid paying tax in Australia, with the Assistant Treasurer Stephen Jones revealing he was planning to give regulators teeth to tackle misconduct in the sector.

PwC revealed on Monday its governance board chair Tracey Kennair and risk committee head Paddy Carney would resign from their roles.

The firm also said nine partners had been directed to stand down from their roles over the tax leak scandal, noting those included had “leadership or governance roles” but did not name them.

PwC chief executive Kristin Stubbins pushed back on attempts to name the staff who received the information, despite calls from Prime Minister Anthony Albanese in parliament.

“There has been an assumption by some that all those whose names have been redacted must necessarily be involved in wrongdoing,” PwC said in a statement

“That is incorrect. Based on our ongoing investigation, we believe that the vast majority of the recipients of these emails are neither responsible for, nor were knowingly involved in, any confidentiality breach.”

PwC CEO Kristin Stubbins.

Two PwC partners, Pete Calleja, who headed up the firm’s financial advisory division, and Sean Gregory, PwC’s chief strategy, risk, and reputation officer, have already resigned and are among the nine on leave.

When The Australian attempted to confirm a list of names a PwC spokesman refused to comment.

Labor Senator Deb O’Neill said the public deserved more than a “curated drip feed” of what PwC was willing to tell them.

Politicians have been seeking to force PwC to reveal the names of staff involved in the leaks.

Greens Senator Barbara Pocock attempted to table a list of 36 names in parliament on Friday in a bid to force the issue.

PwC has created an internal list in a bid to determine the extent to which partners and staff were involved in the sharing of confidential tax information.

PwC’s former chief executive Tom Seymour, who resigned from his role but remains a partner at the firm until he retires in September, is not among those nine stood down.

Mr Seymour had attempted to stave off criticism of the professional services firm, announcing a review into PwC’s leaking of confidential information.

But just days later he resigned, in a move Ms Kennair said was “in the best interests of the firm and our stakeholders”.

Mr Seymour has admitted he was among the partners in the firm who received emails highlighting the marketing approach and financial success of the confidential tax advice.

This comes as parliament prepares to return for a week of hearings set to scrutinise the firm’s actions, amid demands for PwC to reveal the names of 53 partners and staff who were included on emails discussing marketing confidential government tax information.

Peter Collins, former head of international tax for PwC Australia.

On Monday PwC also announced it was taking “further actions to enhance the firm’s governance, accountability and culture”, admitting it had failed in its initial response to revelations its former head of international tax Peter Collins leaked confidential government tax briefings.

The Tax Practitioners Board deregistered Mr Collins for two years after finding he “failed to act with integrity, as required under his professional, ethical, and legal obligations”.

Mr Collins is now subject to an investigation by the Australian Federal Police after the Treasury referred him and PwC.

PwC is running two reviews of the leaks, with corporate veteran Ziggy Switkowski heading up the Australian inquiry, while law firm Linklaters is reviewing the firm’s international exposure.

Mr Albanese said PwC’s actions were “completely unacceptable”.

“All of this should become public at the appropriate time, of course there are investigations under way and I don’t want to say anything to interfere with those processes,” he said.

“Quite clearly, what went on there is completely unacceptable.”

Mr Albanese also said the government would now look at “ethical considerations” over whether PwC would win future contracts from the Commonwealth.

“Any government department undertaking work needs to bear in mind the ethical considerations that come from this PwC behaviour,” he said.

Treasury is running a review into PwC’s use of the confidential tax briefings, as the Commonwealth looks at how to respond to the breaches by the firm.

Mr Jones told The Australian the review was also looking at empowering the Tax Practitioners Board, noting he was considering what changes might need to be put in place to enhance the regulator’s powers and procedures.

“The Tax Practitioners Board will obviously be reflecting upon what’s going on here to ensure they can adequately deal with this sort of behaviour,” he said.

“They need to be a party that is feared by practitioners who might be tempted to do the wrong thing.”

Agriculture Minister Murray Watt last week hinted the review may trim the use of consultants and block the revolving door between the public service and professional services firms.

Originally published as PwC puts 9 partners on indefinite leave and two chairs stand down as firm faces tax leak crisis