Investigations into PwC Confidentiality Breach Ongoing, Two Expected to Conclude This Year

Australian tax authorities are diligently pursuing the trail of PwC Australia and its potential misuse of confidential information. However, detailed updates remain scarce, as revealed in a recent parliamentary committee hearing.

The Australian Taxation Office (ATO) and the Tax Practitioners Board (TPB) have both confirmed the continuation of their investigations into the confidentiality breach involving the 'big four' accounting firm. During a Senate estimates hearing on June 26, TPB chairman Peter de Cure disclosed that nine investigations are currently ongoing, with two expected to be completed by the end of this year.

De Cure’s update came in response to a question from Senator Richard Colbeck, one of three Senators who have been investigating the PwC tax leak scandal for over a year. Colbeck, who chaired the Senate’s Finance and Public Administration References Committee inquiry into government procurement, recently issued a final report urging PwC Australia to disclose the names of all individuals involved in the tax leak.

This recommendation followed the TPB’s statement to the Senate that more than 22 individuals across six countries were likely implicated in the controversy. TPB’s CEO Michael O’Neill had previously informed the Senate in February that the leaked information might have been used to influence global policy developments in multinational taxation.

During the hearing, Senator Colbeck inquired whether the TPB was pursuing any new leads based on O’Neill’s previous evidence regarding the coordination of global policy information to influence tax law development. De Cure, however, refrained from providing further details, stating, "I think it would compromise the investigations to answer that question, Senator."

Despite Colbeck’s persistent questioning, de Cure remained firm, adding, "I’d like to not say anything further about that at this time for the sake of those investigations."

Meanwhile, representatives from the ATO informed the committee that discussions with global tax authorities about issues raised by PwC Australia’s breach are ongoing. Rebecca Saint, the ATO’s deputy commissioner for public groups, explained that these conversations include general sharing about the conduct of tax advisers and firms, and confirmed that PwC’s conduct in relation to the breach continues to be a topic of global discussion. She noted that these discussions involve tax authorities from the US, UK, Canada, the Netherlands, and Australia.

"In terms of specific conversations or disclosures around PwC, that’s covered a range of topics including the breach of confidentiality, but I can’t go into better detail about what the specifics of those conversations or those disclosures have been," Saint stated.

Additionally, in an exclusive interview with ITR earlier this week, de Cure warned that Australian tax advisers attempting to exploit a new ‘dob-in’ regime to make vexatious complaints against fellow practitioners could themselves face investigation.

By fLEXI tEAM