PwC tax leak scandal: Partners face parliamentary attempt to expose names

The scandal engulfing PwC has widened with two top partners believed to have been copied into emails from fired tax chief Peter Collins.

The tax scandal brewing in the heart of PricewaterhouseCoopers appears to run through to the top of the professional services giant, with the firm’s managing partner for people, partnerships, and culture among those named on a list Greens senator Barbara Pocock attempted to table in Senate Estimates on Friday.

This comes as PwC partners met on Friday to hear from the firm’s new chief executive, Kristin Stubbins, who attempted to assure staff the extent of the breaches were confined to a “small cohort”, but signalled the firm would be making a “meaningful announcement” in the coming week.

In a list shown to The Australian, PwC’s head of tax, Chris Morris is named along with Helen Fazzino, the managing partner for people. The Australian understands the names of people in the document Senator Pocock tried to table are those copied into emails in which confidential information may have been referred to by former partner Peter Collins. It is not suggested any of those copied into the emails had knowledge of, or were involved in, the tax scandal

Also on the list of names Ms Pocock attempted to table is Helen Fazzino, PwC’s managing partner people, partnerships, and culture and a former global tax partner.

Senator Pocock attempted to table the document in Senate Estimates on Friday but the move was blocked by a committee pending review by the clerk.

The Australian understands the names of people contained in the document that Ms Pocock tried to table are people who were copied into emails in which confidential information may have been referred to by former PwC partner Peter Collins.

It is not suggested that any of those copied into the emails had knowledge of, or were involved in, the tax scandal engulfing the firm.

The list of 36 partners who were copied into various emails takes in most of the Australian PwC tax team.

Mr Morris was promoted just a few weeks ago after senior PwC partners Mr Calleja and Sean Gregory were forced to stand down from their roles over the scandal. Peter Collins, who ran PwC’s international tax business, had already left the firm and subsequently deregistered from practising, while Tom Seymour agreed to step down from the role of chief executive before retiring from the firm in September.

PwC has refused to comment on the list of people named in the document. However the firm has indicated to The Australian not all those on the list were involved in the alleged leaking of tax information.

Senator Pocock said the full list of PwC staff and partners she has a copy of would be revealed “before too long, as they should be”.

“This whole chapter has been about the need for transparency and for transparency that unfolds in a timely way,” she said.

“This delay, this is just a delay, no doubt, but this is a story of delays and lack of transparency and we need both.”

The Tax Practitioners Board said it would not comment on the list, but it would appear before Senate Estimates on Wednesday at which time they are expected to release all the names of the partners.

PwC convened a meeting of partners on Friday, which saw Ms Stubbins seek to assure staff the firm was being backed by clients.

Ms Stubbins reportedly told partners the firm would not release the names of its staff who used confidential tax information, due to complex legal reasons including tax secrecy provisions.

However, she signalled to partners PwC would now release a full copy of a review being prepared by corporate veteran Ziggy Switkowski, with backing from a team outside the firm.

Ms Stubbins also said PwC would make a meaningful announcement next week, ahead of its appearance before a Senate inquiry on June 7.

Meanwhile, rival accounting firm Deloitte’s chief executive, Adam Powick, and Tom Imbesi have put out a note to staff describing the behaviour of those at PwC who were responsible as “clearly unethical and unacceptable”.

“What has transpired is deeply troubling and disappointing and is justifiably attracting significant scrutiny and reaction,” the note to staff said.

“Our response is focused on reaffirming we have the appropriate culture, controls and governance in place to prevent a similar situation ever occurring at Deloitte.”

The PwC tax scandal has revealed that the accounting and consultancy firm was garnering fees from the government to advise it on developing international tax avoidance laws; and then using that very same confidential information to help global clients avoid tax.

Just in the past two years, PwC has won contracts worth $573m from the federal government. It also works extensively across state governments.

Some politicians now believe PwC should be banned from pitching for all government contracts.

Labor senator Deb O’Neill, a vocal critic of PwC over the leaks and the way the firm has handled the response, said the names of staff should be released.

“It is only a truly contrite set of partners and leaders at PwC Australia and PwC Global that can provide the list to the public,” she said.

The firm faces an effective shadow ban in Canberra, after new procurement rules were issued by the Department of Finance, reminding officials to consider previous behaviour including ethical conduct.

Finance also issued orders to PwC to stand down all staff linked to the tax leaks working on government contracts.

A bruising week of senate estimates has heard Australian Federal Police are looking to expand their investigation into PwC’s leaks of confidential tax information beyond Mr Collins.

This comes after Treasury secretary Steven Kennedy referred PwC to the AFP amid concern about “the significant extent of the unauthorised disclosure of confidential Commonwealth information”. Treasury is also preparing a review into the scandal.

Budget estimates also heard PwC was reprimanded after it used access to confidential information to make an unsolicited offer to provide IT services to the Department of Agriculture.

PwC has flow in global general counsel Diana Weiss as well as tax and legal leader, Carol Stubbings to get a grip on the scandal.

Speculation is mounting about the extent of damage this scandal could have on offshore partners as the partly redacted email addresses clearly show domains from the US, UK, Ireland and Asia Pacific, with concern this may lead to a string of job losses.