Can PwC tide over trust crisis as tax leak scandal rages in Australia?
- The accounting giant’s CEO and nine partners have stepped down after the company was accused of disclosing confidential government tax information to private clients
- The scandal also raised questions over ethics at deep-pocket big four firms and revealed departments tasked to probe PwC gave hefty contracts to the company battling to save its image
The scandal unfolded earlier this year after the former head of international tax for PwC Australia, Peter-John Collins, was deregistered for sharing confidential government briefings on new tax evasion laws with the company’s partners and customers to allegedly help them benefit from the information.
The misconduct has raised questions over ethics at deep-pocket big four firms and the potential for too cosy relationships between governments and their clients.
PwC, Australia’s biggest accounting firm, is now scrambling to salvage its reputation amid a crisis of public trust.
The saga also echoes similar cronyism scandals at other global corporate behemoths, including the 2001 collapse of US energy titan Enron, whose problems were hidden by then big eight auditor Arthur Andersen.
During scheduled Senate hearings on budget spendings held this week, lawmakers grilled the Australian Tax Practitioners Board (TPB), the tax office, and the Australian treasury for failing to protect taxpayer funds and get to the root of the problem known to officials since at least 2018.
