PwC chief steps down as tax leak scandal shreds company’s reputation

PwC Australia boss Tom Seymour has stepped down from his position as the fallout from the tax leak scandal continues to weigh on the firm.

The firm on Monday said that Seymour’s departure as CEO had come after discussions with the PwC Australia Board of Partners.

PwC Australia chief executive Tom Seymour.Credit: Michael Quelch

“We agreed with Tom that this is in the best interests of the firm and our stakeholders,” PwC said in a statement.

“In the coming months a new CEO will be elected by the partners.”

PwC has appointed its assurance leader, Kristin Stubbins, to serve as acting CEO. Seymour will remain with the firm.

PwC has been under fire after it emerged in January that a former partner, Peter Collins, had been banned by the Tax Practitioners Board for leaking confidential government tax plans – which included new rules to stop multinationals avoiding tax – to other staff and partners at the firm.

Public documents that were revealed at a parliamentary inquiry last week have added to the pressure on the firm, as these included internal emails sent by Collins, and last week Seymour admitted he was one of the partners who had received the information.

The information spearheaded a push for new business for PwC.

Seymour said last week the emails did not contain breaches of confidentiality, but they did demonstrate a “cultural problem at the time”.

PwC has previously announced an internal review into the affair, and chair of the board of partners Tracey Kennair, said on Monday the firm needed to rebuild trust.

“The independent review previously announced, in addition to the changes already made, will help us meet this objective,” she said.

Stubbins, the acting CEO, said: “I am honoured to take on this role at a critical time for our firm and our 10,000 people. We are committed to learning from our mistakes, listening to our stakeholders and enhancing our culture to build stronger trust and transparency.”

The scandal has angered the federal government, which is a key client of PwC, with Treasurer Jim Chalmers saying in January he was “absolutely furious” about the affair. Last week, Chalmers said the federal government was prepared to take further action against PwC, if necessary.

“I’ve indicated to the Treasury and to the regulators if there are more steps that are necessary, I’m prepared to take them,” Chalmers said at a press conference last Thursday.

“I consider what happened there to be completely inappropriate. I’ve said that publicly, I’ve said that privately to the company as well.”

With Colin Kruger

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