TPB bans former PWC partner, censures PWC
A former PWC tax partner who disclosed details of a confidential Treasury consultation around changes to international tax laws to other PWC partners and staff has been deregistered by the Tax Practitioners Board (TPB) including a two-year ban on becoming a tax practitioner.
At the same time, the TPB has held that PWC breached its obligations under the law and the Code of Professional Conduct.
The TPB said that the man, Peter-John Collins had been the subject of an investigation which found that, while a partner of PwC, was part of a confidential consultation by Treasury to improve tax laws.
It said this included new rules to stop multinationals avoiding tax by shifting profits from Australia to tax and secrecy havens and that Collins made unauthorised disclosures of this confidential law reform information to partners and staff of PwC.
The TPB found Collins failed to act with integrity, as required under his professional, ethical, and legal obligations, and terminated his tax agent registration.
In addition, the TPB investigation determined that PwC had failed to properly manage conflicts of interest, when this confidential law reform information was shared with partners and staff in their tax practice. PwC breached its obligations under the law and the Code of Professional Conduct. The TPB ordered PwC to have processes and training in place to ensure conflicts of interest are adequately managed.
Commenting on the TPB’s actions, its chair, Ian Klug said the board was very concerned when tax practitioners abused their positions of trust, or fail to act with integrity.
“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. Rules to manage conflicts of interest are equally important in protecting client interests, especially in a large firm with multiple clients and many staff.”
“Some tax practitioners are involved in confidential law reform discussions, to share their wisdom and experience and to support the public interest’, Mr Klug noted. Leaking confidential information in these circumstances might be seen to elevate personal and commercial profit, breaching public interest, legal and ethical obligations.”
“Tax practitioners have a privileged position, helping clients to engage with the tax and superannuation systems. The TPB will not tolerate those practitioners who act without integrity.”
Maybe more Tertiary education is required because according to the government, Tertiary education makes people more ethical.