AFP reveals more raids in PwC tax scandal probe

The AFP says it is working through documents and statements from more searches it carried out after a raid of PwC headquarters, as part of its investigation into the tax scandal.

Former PWC head of international tax Peter Collins. Picture: Luis Enrique Ascui

The Australian Federal Police has revealed more raids in its investigation of the misuse of confidential government tax information by PwC Australia, but senior police refuse to confirm if they are in possession of a crucial report detailing the scandal.

Appearing in a late night hearing of Senate estimates on Tuesday, the AFP told parliament its Operation Alesia investigations into the PwC tax scandal were still progressing after being first referred for attention two years ago.

Operation Alesia is examining whether former PwC partners breached Section 70 or Section 90 of the Crimes Act, which relate to the disclosure of information and official secrets.

The AFP is scrutinising the use of confidential government tax briefings by former partners in PwC’s tax practice, who allegedly shared the inside information with others in the firm in a bid to front-run new tax laws introduced in 2016.

PwC’s former head of international tax Peter Collins was banned as a tax practitioner in October 2022 by the Tax Practitioners Board after being found to have breached his confidentiality deeds in the scandal.

Under questioning from Greens Senator Barbara Pocock, AFP assistant commissioner Stephen Nutt said the investigations into the scandal remained ongoing.

He noted police had executed more search warrants after raiding PwC’s Sydney headquarters in November last year.

Australian Federal Police Assistant Commissioner Stephen Nutt. Picture: NewsWire / Martin Ollman

Mr Nutt said these searches, on top of similar raids at Mr Collins’ home in Sandringham, as well as a house in Sorrento, were in “furtherance” of the AFP investigation.

But Mr Nutt said the AFP couldn’t share further details, noting it was “not a good time for us to talk in further detail”.

The assistant commissioner said the AFP was in the “due diligence” stage of dealing with witnesses and subjects in the investigation.

Mr Nutt said the AFP had collected a “large number” of documents over the course of its investigation.

“They fell within the conditions of the search warrant,” he said.

As previously revealed in The Australian, PwC and the AFP have exchanged at least 32 documents relating to Operation Alesia.

But Mr Nutt declined to reveal if the AFP had been handed PwC’s internal investigation into the scandal prepared by law firm Linklaters.

The Linklaters review into the scandal “found no evidence that any PwC personnel outside of Australia used confidential information from PwC Australia for commercial gain”.

PwC also said the report found most members of the firm who received confidential information didn’t know it was confidential.

“However, the review found that six individuals should have raised questions as to whether the information was confidential,” PwC said.

“To the extent that they are still with PwC, their firms have taken appropriate action.”

PwC has consistently refused to release the report or any further detail on its findings.

Matthew Chen

However, as revealed in The Australian, at least one senior member of the firm, PwC International Washington national tax services partner Matthew Chen, received allegedly confidential Australian government tax information in 2014 in part of a suite of emails detailing reform plans.

Mr Nutt said he “won’t make a specific comment” on whether the AFP had the report.

“As the evidence review is still underway. I couldn’t be definitive at this stage,” he said.

A PwC spokeswoman noted the firm’s previous commentary on the AFP investigations.

“We will continue to fully co-operate with the Australian Federal Police’s investigation, as we have from the beginning,” she said.

“In the past two years, PwC has introduced significant governance, business and cultural reforms, and our people remain focused on delivering the best outcomes for our clients and communities.”

Labor Senator Deb O’Neill, who has been a critic of PwC’s misuse of confidential information, said the AFP should continue its work in the matter.

“It is essential that the AFP has the capacity or prosecute all those who misuse confidential government information and breach public trust in the shameless pursuit of personal power and financial gain,” she said.