‘Slap on the wrist’ – effectiveness of TPB questioned

Mike Taylor

Managing Editor/Publisher, Financial Newswire

27 February 2023

A Parliamentary committee has directly questioned the effectiveness of the Tax Practitioners Board (TPB) and the level of oversight directed towards it by the Australian Securities and Investments Commission (ASIC).

The chair of the Parliamentary Joint Committee on Corporations and Financial Services, Labor Senator, Deb O’Neill made clear her concerns about the TPB’s handling of breaches by a former PricewaterhouseCooper (PWC) tax partner, Peter-John Collins, and the penalty imposed on him.

That penalty involved being deregistered as a tax agent including a two-year ban on becoming a registered tax practitioner.

During questioning of the chair of ASIC, Joe Longo, O’Neill said that the TPB’s penalty appeared to be little more than a “slap on the wrist”.

Collins, as a tax partner with PwC, was part of a confidential Treasury consultation on tax laws, and the TPB found that he had made unauthorised disclosures of confidential law reform information to partners and staff of PwC.

O’Neill expressed particular concern that Collins’ personal conduct extended to PwC and asked Longo what confidence ASIC had that the TPB was actually doing their job.

The committee chair said that 20 or 30 PWC party to the confidentiality breach, prompting Longo to respond that it was something that “maybe ASIC might have to take on notice” in terms of determining a response.

However, in doing so, Longo pointed out that ASIC’s jurisdiction was limited in the matter beyond its oversight of auditors and broader corporate misconduct and pointed to the role of the Australian Taxation Office (ATO).

The TPB operates under a board and chair appointed by the Treasurer with staffing provided by the ATO.