PwC’s top rivals review possible links as parliament prepares to resume hearings

PwC’s rivals have concluded their investigations into potential links from staff at the firms to the tax scandal haunting the company.

PwC Australia’s professional services rivals have wrapped up internal reviews of potential links to a tax scandal haunting the firm in a bid to determine if they face being caught up in investigations into the use of confidential government briefings.

Deloitte, KPMG, and EY Oceania have all completed reviews of their staff and partners who previously worked at PwC in a bid to determine if any were involved in the sharing of confidential briefings.

The firms are understood to have called in staff for interviews with internal legal teams, as the broader professional services industry and legal services sector attempts to understand the extent of the scandal.

This comes as the impact of the tax scandal continues to flow through corporate Australia, with former PwC staff engaging representation amid fears they may be linked to the tax scandal.

PwC has faced weeks of criticism after it was revealed the firm’s former head of international tax Peter Collins used confidential government tax briefings to shape new tax strategies for clients ahead of the introduction of the Multinational Anti-Avoidance Law in 2016.

This allowed PwC to monetise the advice, reaping millions in fees from clients, including many tech companies, which attempted to use new schemes to circumvent the new strict tax laws.

PwC and current and former staff connected to the leaks also faces investigations by the Australian Federal Police and the Tax Practitioners Board.

PwC Australia’s professional services rivals have wrapped up internal reviews of potential links to a tax scandal haunting the firm. Picture: Damian Shaw/NCA NewsWire

Deloitte said it had confirmed 10 former PwC partners had joined the firm since the 2019 financial year.

A spokeswoman said the firm had made inquiries of former PwC partners “still at Deloitte and can confirm that none of these individuals were involved with the reported PwC tax confidentiality issues”.

Deloitte conducted the interviews at general counsel level, but staff were not required to sign statutory declarations.

EY Oceania said it had “specifically and individually confirmed” with its current tax partners who worked at PwC between July 2013 to today “that they were not included in any of the correspondence released by the Tax Practitioners Board in relation to the inappropriate use of confidential information by Peter Collins or the scheme to monetise breaches of government confidential information”.

KPMG is understood to have done the same, reviewing which of its former partners with links to PwC may have been involved in the scheme.

PwC has handed a list of 63 names of current and former staff and partners to a federal parliamentary committee investigating the use of consultants in government, but urged they not be published amid concern it might prejudice ongoing investigations into the leaking of confidential information.

However, PwC has named several figures involved in the tax scandal, including former partners who have gone on to work in other sectors.

These include former DLA Piper partner and tax resolution lawyer Paul McNab, who has denied he breached confidentiality and claimed he was not party to the distribution of any information.

Mr McNab was pushed from DLA Piper after the firm became aware PwC was set to name him.

Michael Bersten, who was also named by PwC, has also slammed the firm for naming him.

The Australian Taxation Office “postponed” a course being run by Mr Bersten via the University of New South Wales after his naming.

PwC has had teams of lawyers pouring over the firm’s records and calling in staff for interviews as it seeks to understand the extent of the use of confidential information within the business.

Linklaters has also been brought in to run an international review of the tax scandal after it was revealed confidential information was shared with PwC partners in the UK, the US, Ireland, and the Asia Pacific region.

Corporate veteran Ziggy Switkowski is also running a review of the local operation.

The conclusion of the investigations by Deloitte, KPMG, and EY, come as parliament prepares to convene for two more days of hearings looking at the use of consultants.

EY, Deloitte and Accenture are understood to be among several groups expected to be called to appear.

Deloitte said it had confirmed 10 former PwC partners had joined the firm since the 2019 financial year.