The Australian Federal Police (AFP) has launched a criminal investigation into a former executive of consulting firm PwC, after he used confidential Treasury information to benefit the firm’s client base.
Key points:
- The AFP has launched an investigation into former PwC executive Peter-John Collins
- Mr Collins shared confidential tax law information with partners and clients that would be impacted by them
- The referral does not mean a criminal investigation has been launched
In a statement, the Treasury secretary Steven Kennedy said he had asked the AFP to consider a criminal investigation into the firm’s former head of international tax, Peter-John Collins.
Mr Collins shared confidential information about tax laws with partners, staff and clients that would be impacted by them, despite signing three separate confidentiality agreements in 2013, 2016 and 2018.
“The emails that the Tax Practitioners Board tabled in Parliament on 2 May 2023 highlighted the significant extent of the unauthorised disclosure of confidential Commonwealth information and the wide range of individuals within PwC who were directly and indirectly privy to the confidential information,” Dr Kennedy said.
The AFP confirmed the investigation would proceed.
“The AFP today … received a report of crime relating to the alleged misuse of confidential government information,” a spokesman said.
“An investigation has commenced and no further comment will be made at this time.”
Around a decade ago, Mr Collins had been asked to help the Commonwealth draft new tax laws to help it target multinational companies, accused of shifting profits offshore.
The Tax Practitioners Board investigated the matter, and found he “did not act with integrity”, disqualifying him from practicing until the end of 2024.
Earlier this month, PwC Australia’s chief executive Tom Seymour stood down.
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The Treasurer Jim Chalmers would not comment on the referral to the AFP, but flagged further action against PwC on Monday.
“We’ve already taken some steps to change the way the Tax Practitioners Board operates,” Mr Chalmers said.
“I think the PwC experience has been deeply, deeply troubling — I will have more to say about how we crack down.”
He was reluctant to discuss the possibility of banning the firm from getting future government contracts.
“I will have more to say about how we crack down on this behaviour, which is inexcusable, frankly, particularly when you consider that corporate Australia for the right reasons, wants to be consulted on changes that impact them, and I want to do that too,” the Treasurer said.
“That’s really part of the character of this Government is consultation.
“But in order to do that, you’ve got to be able to trust the process — that trust is broken down here, we need to fix it.”
In Senate estimates on Wednesday, executives from the Attorney-General’s Department said the firm had not been blocked from tendering.
“We are alive to the concerns that are being raised about the conduct of PwC and the work they did in the tax office,” the department’s Cameron Gifford told the committee.
“Noting the concerns in relation to PwC that will be a factor but we haven’t ruled them out from future processes.”