PwC Australia Submits Final Compliance Report Amid Tax Leak Scandal Developments

PwC Australia has delivered its final compliance report to the Tax Practitioners’ Board (TPB), marking the conclusion of its obligations under a regulator-imposed order stemming from the firm’s involvement in the tax leaks scandal.

The firm had been required to submit compliance reports every six months, detailing updates to its internal controls and training initiatives. This mandate was issued after PwC Australia failed to adequately manage partner and staff participation in government consultation processes during the controversy.

The latest and final compliance report, dated December 16, 2024, provides a comprehensive overview of PwC Australia’s updated training programs. These include adjustments to align with changes in tax agent regulation and other relevant tax legislation.

Key among the updates is a newly introduced compliance training package that all new hires at PwC Australia must complete. The firm stated:“All partners and staff receive compliance training upon commencement with the firm and upon return if they take an extended absence of 12 months or more for any reason. The curriculum includes modules explaining our code of conduct, audit independence, confidentiality, conflicts of interest, cyber, ethics and integrity and data protection policies.”

Additional specialized training is required for employees working in tax-related roles:“If they are in tax or private tax, they are also required to complete the tax agent code of conduct and regulatory consultation processes training.”

PwC Australia has also strengthened procedures for approving staff appointments to external boards of directors, even when such roles are unrelated to government advisory work. For instance, the report highlighted a case where an employee’s appointment to a university faculty advisory board—unconnected to government regulation—was still subject to approval processes.

Throughout the compliance period, PwC Australia made significant changes, including implementing detailed registers of confidentiality agreements and updating training programs. These measures were reflected in all four previously published compliance reports.

Despite fulfilling its obligations to the TPB, PwC Australia remains under scrutiny, as the regulator continues to investigate five additional tax leak-related cases. TPB Chairman Peter de Cure revealed last year during parliamentary committee hearings that four out of nine cases had been finalized.

One of those closed cases involved former PwC tax partner Wayne Plummer, who was cleared of any wrongdoing. Plummer, who left PwC Australia in July 2023 following the firm’s announcement of his removal over tax leaks-related concerns, shared an update on LinkedIn in December 2024. He noted that three separate organizations had reviewed his work at PwC and found no case to answer.

“The Tax Institute of Australia advised me in August 2023 that its investigation was not proceeding; the TPB concluded its investigation in September 2024 with no adverse findings; and the Chartered Accountants Australia and New Zealand professional conduct committee reached a decision this week to discontinue its investigation (again with no adverse findings),” Plummer stated.

While PwC Australia seeks to close this chapter of its regulatory obligations, the broader tax leak saga continues to cast a shadow, with ongoing investigations ensuring that the firm’s conduct remains under public and regulatory scrutiny.

By fLEXI tEAM