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Clients and other staff were given confidential information about impending changes to multinational tax rules.
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Former PwC partner banned for sharing secret Treasury docs
24 January 2023
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A former partner at PwC, Peter-John Collins, has been deregistered as a tax agent and banned for two years by the Tax Practitioners Board (TPB) for using confidential Treasury information to advantage the firm advising multinational clients.
The TPB said Mr Collins had been engaged by Treasury in a confidential consultation to improve tax laws, including new rules to stop multinationals avoiding tax by shifting profits from Australia and the adoption of the OECD’s Base Erosion Profit Shifting provisions.
TPB said the confidential information included how the proposed legislation and policy might impact the tax position of PwC clients. This was shared by Mr Collins with other PwC staff who used it in discussion with clients or potential clients.
“Internal communications within PwC indicated that Mr Collins was aware that the confidential knowledge he gained from the consultations with Treasury would be leveraged to market PwC to a new client base,” the TPB said.
The TPB found Mr Collins failed to act with the integrity required by his professional, ethical and legal obligations. His tax agent registration was subsequently terminated, and Mr Collins is understood to have left the firm last year.
The TPB investigation also determined that PwC had failed to properly manage conflicts of interest after the confidential information was shared with partners and staff in its tax practice.
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It said PwC breached its obligations under the law and the Code of Professional Conduct and had ordered the firm to institute processes and training to ensure conflicts of interest are adequately managed.
PwC said it deeply regretted the matter and Mr Collins had since left the firm.
“We acknowledge the TPB found that a partner of the firm did not comply with confidentiality agreements in relation to a consultation process with Treasury, which occurred in 2014,” said a PwC spokesperson.
“We also acknowledge that PwC should have had specific conflict management procedures and policies operating at the time to prevent this occurring.
“In each case this failed the standards we set for PwC and we deeply regret this occurred.
“The firm has since reviewed and strengthened its controls, policies and training with respect to conflicts of interest.”
TPB chair Ian Klug said tax practitioners who abused their position of trust or failed to act with integrity would not be tolerated.
“Some tax practitioners are involved in confidential law reform discussions to share their wisdom and experience and to support the public interest,” he said.
“Leaking confidential information in these circumstances might be seen to elevate personal and commercial profit, breaching public interest, legal and ethical obligations.”
“Rules to manage conflicts of interest are equally important in protecting client interests, especially in a large firm with multiple clients and many staff.”
Mr Klug said tax practitioners had a privileged position in helping clients to engage with the tax and superannuation systems.
“Many Australians and most businesses entrust their tax practitioner with sensitive personal, financial and tax information. Tax practitioners who breach this confidence will not be tolerated.
“The TPB will not tolerate those practitioners who act without integrity,” he continued.
The TPB encouraged anyone who knew of a tax practitioner acting without integrity to make a complaint online.
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