PwC Australia fires eight partners – including former chief exec – following internal probe into leak scandal
PwC’s embattled Australian business has fired eight partners, including its former chief executive, following an internal investigation into the leaking of confidential government tax plans by a former partner.
The investigation found that ‘misuse of confidential information’ breached professional standards.
It also identified ‘a failure of leadership and governance’ to address the breaches, PwC said in a statement.
The professional services group has been in crisis in Australia after leaked emails showed it had used information about tax policy changes it had obtained in confidence from the government to try to win new business from corporate clients.
The Australian Treasury referred the matter to the police in May.
Sackings: PWC has been in crisis in Australia after leaked emails showed it used information it had obtained in confidence from the government to try to win new business
The Reserve Bank of Australia, several government departments and the country’s three largest pension funds have frozen or reviewed ties with PwC.
The sackings are the latest attempt to contain the damage to the business caused by the scandal.
It began after a former partner, Peter Collins, who had been advising the Australian government on new tax laws targeting corporate tax avoidance, shared confidential drafts with colleagues, which were used to drum up business around the world.
Collins, PwC Australia’s former head of international tax, had been part of a trusted group of outside tax experts helping the Australian government to draft its 2016 Multinational Anti-Avoidance Law.
He had signed strict confidentiality agreements with the Australian Treasury.
Emails showed, however, that Collins had shared secret government documents, decisions and planning for the new tax laws with colleagues.
He has since been deregistered as a tax agent by the Tax Practitioners Board and is under investigation by police.
Kristin Stubbins, acting chief executive of PwC Australia, said: ‘Accountability is critical to improving our culture and, based on our investigation to date, it is clear that the conduct of a number of partners fell short of what was expected of them.
They are now being held accountable for their misconduct.’
Tom Seymour, who stepped down as chief executive of PwC Australia in May, is one of the eight who have left or are in the process of leaving.
He admitted he had received emails containing confidential information about the government’s tax plans. The eight have not commented.
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