Tax Practitioners Board pushing to broaden PwC Australia investigation

The Tax Practitioners Board is considering expanding its probe into the PwC tax leaks, revealing it was reviewing an internal list of names after already banning one partner.

The Tax Practitioners Board is considering expanding its probe into the leaking of confidential tax briefings by PwC, revealing it was reviewing an internal list of names after already banning one partner.

Appearing in Senate Estimates on Wednesday, the regulator for tax accountants said it had assembled an internal list of PwC partners and staff connected to the firm’s leaking of confidential tax briefings.

However, the TPB told parliament it was unsure whether the knowledge of the leaking of confidential information extended further or the culpability of those on emails and documents compiled by the regulator.

TPB CEO Secretary Michael O’Neill said the regulator was preparing a “more detailed list”, confirming the agency was making further inquiries about PwC’s involvements.

“The nature of those inquiries, we’re very cautious about saying because there are whole of government co-ordination issues, and there are some prejudice issues that we’re trying to manage,” he said.

But Mr O’Neill said the TPB had no plan to suspend PwC from tax practice.

PwC is also facing an Australian Federal Police investigation after Treasury referred the tax scandal on Monday.

Tax Practitioners Board CEO Secretary Michael O'Neill. Picture: NCA NewsWire / Martin Ollman

The AFP has warned it is looking at expanding its investigation beyond PwC’s former international tax chief Peter Collins, who was deregistered by the TPB.

The AFP investigation marks the second time the matter has been presented to police, after the ATO earlier attempted to have authorities including the AFP and the Commonwealth Department of Public Prosecutions take up action against PwC and Mr Collins.

On Wednesday the Reserve Bank supported a call for the firm to reveal the names of staff connected to the leaks, ruling out working with the firm until it met the public outcry.

Weeks of bruising public hearings have cost PwC the chairs of the firm’s two top boards, with a further two board members being scrubbed from its website in recent days amid speculation the men were among partners with knowledge of leaks of confidential information.

RBA governor Philip Lowe has supported consequences for PwC’s breach of confidentiality, noting the firm’s behaviour was “unacceptable”.

“The use of private information for this sort of commercial gain is wrong, it destroys trust … it’s unacceptable,” Dr Lowe said.

However, he confirmed the RBA did hold an ongoing consulting agreement with PwC that was entered into last year. Dr Lowe said the PwC review was looking at auditing potential underpayments of entitlements of people leaving the bank, with the contract worth around $400,000.

“We’ve taken the decision to enter no new contracts with PwC until a satisfactory response has been forthcoming,” he said. “And a satisfactory response includes both complete transparency and accountability for those involved and we will not be seeking further services until that happens.”

Dr Lowe said PwC should identify its partners who had misused confidential tax information. “They need to provide transparency if they are to rebuild trust – and trust is the cornerstone of their profession,” he said.

“What we want to see is anyone who knew what was going on and complicit in what was going on to be identified. So we need transparency around that.”

Dr Lowe said if PwC failed to identify its partners “then we don’t want to work with them”.

The Tax Practitioners Board hit Mr Collins with a two-year ban after finding he “failed to act with integrity, as required under his professional, ethical, and legal obligations”.

RBA governor Philip Lowe. Picture: NCA NewsWire / Martin Ollman

TPB chair Peter de Cure defended the agency’s response to the scandal and public demands for action against PwC, claiming it lacked the powers to impose stricter penalties.

“Our processes will need us to make findings before we consider sanctions,” he said.

Mr de Cure said the two-year penalty meted out against Mr Peter Collins, deregistering him and preventing him from practising, was sufficient punishment.

“I don’t think we’ll ever see an application,” Mr de Cure said.

But Mr de Cure revealed Mr Collins was supported in his attempt to minimise his punishment, short of the potential five- year maximum, after being supported by two PwC partners and another independent referee.

Mr O’Neill said the TPB had been unable to get an answer from PwC Australia on the names of nine partners who were stood down by the firm on Monday in connection to sharing confidential tax briefings.

He said the TPB had contacted PwC seeking information on the partners stood down but had received no response yet.

A PwC spokesman said the firm had been given a deadline of June 20 to hand over the names. “We will respond in accordance with the TPB’s request,” he said.

PwC has stonewalled attempts to reveal the names of partners and staff at the firm connected to the scandal that is threatening the professional services’ giant’s lucrative links with government.

Prime Minister Anthony Albanese said PwC’s leaks were an “absolute scandal” but stopped short of agreeing to refer the firm to the National Anti-Corruption Commission.

“The breaches in confidentiality by PwC is an absolute scandal and it is deeply troubling,” he said.

“I’m sure anyone who has a look at the details that have been revealed for those events that occurred back in 2018 and around then, when PwC was giving advice to the then government on multinational tax changes, finds these revelations are shocking.”