Senate committee to consider calling PwC figures as hearings near on consultant scandal

Two more partners quit the firm’s executive board late on Wednesday as parliament prepares a list of names to be called to give evidence about a tax information scandal.

Former PwC Australia chief executive Tom Seymour. Picture: Floss Adams

The former boss of PricewaterhouseCoopers Australia could be among current and former partners of the company called to give evidence to a parliamentary committee, as two more members of the firm’s executive board quit in the face of a growing crisis in the firm.

The Senate Finance and Public Administration committee will meet on Thursday, and members of its inquiry into management and assurance of integrity by consulting services will establish a list of names to call.

This is likely to result in PwC Australia’s former chief executive, Tom Seymour, being called to explain how much senior consultants knew about the firm’s use of confidential tax information.

PwC’s former head of international tax, Peter Collins, is also expected to be added to the list of those asked to give evidence after he shared confidential tax information.

Mr Collins was banned by the Tax Practitioners Board for two years after the regulator found he breached its code of conduct by sharing confidential information gleaned from advising Treasury about plans to change anti-avoidance laws.

Parliament is also expected to call on the TPB to explain its investigation into Mr Collins, which began in April 2020 after the agency received a tip-off about the former PwC tax boss.

Late on Wednesday, PwC partners Pete Calleja and Sean Gregory also quit the firm’s 16-member executive board in the face of growing criticism.

Mr Calleja headed up PwC’s financial advisory division, leading almost 3000 staff across the firm’s deals, energy transition, legal, private and tax services.

Mr Gregory was PwC’s chief strategy, risk, and reputation officer.

Only 13 members of the executive board remain in their roles.

The TPB last week released emails revealing exchanges between 53 different email addresses, discussing marketing a project to American tech companies to help them deal with new tax laws – which Mr Collins was advising Treasury on.

Mr Seymour, who previously ran PwC’s tax practice, has admitted he was one of the company’s staff who were included in this correspondence.

The PwC boss last week moved to head off criticism, announcing an internal inquiry into the tax leaks, but was unable to save his job as intensifying criticism both inside and outside built over the weekend.

Mr Seymour resigned as chief executive on Monday, announcing he would immediately step aside from the top job after three years leading the company. However, Mr Seymour remains a partner at PwC.

Assurance leader Kristin Stubbins has been appointed as acting CEO of PwC ahead of a vote over to who will lead the sprawling professional services giant.

In a carefully worded statement, PwC Australia’s board noted it “agreed with Tom that this is in the best interests of the firm and our stakeholders”.

PwC has gone into crisis mode after Mr Seymour’s resignation, and the company pulled its $80,000 sponsorship and branding of the flagship post-budget dinner in Canberra.

Sources told The Australian no PwC staff attended the dinner.

A PwC spokesman was unable to explain why the company withdrew its sponsorship, nor when Mr Seymour notified the board of his intention to resign.

The spokesman told The Australian the company was considering responding to this publication’s questions on Tuesday, but on Wednesday said no answers would be forthcoming.

Senator Deborah O’Neill, who ordered the TPB hand over the PwC emails, said the Senate Finance and Public Administration committee had requested “a full list of those involved in this egregious breach of public trust”.

“Separately, I am writing to the Tax Practitioners Board to seek further information, including on whether it referred evidence of misconduct to other regulatory bodies, such as the Institute of Public Accountants, Certified Practising Accountants Australia or the Chartered Accountants Australia + New Zealand,” she said.

Speaking under parliamentary privilege, Senator O’Neill said Mr Seymour and Mr Collins were involved “in the deception of the Australian parliament, the Australian people and a betrayal of the ethical and professional standards they should be upholding”.

Originally published as Senate committee to consider calling PwC figures as hearings near on consultant scandal