Executive Behind PwC Tax Scam Referred to Police Over Release of Confidential Information

Secretary to the Treasury Dr Steven Kennedy during Senate Estimates at Parliament House in Canberra, Australia, on Nov. 10, 2020. (AAP Image/Mick Tsikas)

Peter-John Collins, the former Australian head of the international tax department at consulting firm giant PricewaterhouseCoopers (PwC), has been referred to the Australian Federal Police (AFP) over the improper use of confidential government information.

In a statement released on May 25, the Secretary to the Treasury, Dr. Steven Kennedy, said that the emails from the Tax Practitioners Board presented in Parliament on May 2, “highlighted the significant extent” to which Collins divulged confidential Commonwealth information and the “wide range of people within PwC who were, directly and indirectly, privy to the confidential information.”

“In light of these recent revelations and the seriousness of this misconduct, the Treasury has referred the matter to the Australian Federal Police to consider the commencement of a criminal investigation,” Kennedy said.

The referral from the secretary comes after Assistant Treasurer and Minister for Financial Services Stephan Jones confirmed that the Australian Treasury Department is investigating whether criminal charges should be referred to the AFP.

“We’re all appalled (with) what’s gone on with PwC,” he told ABC’s The Business program.

“We want to send a very clear message to them and anyone else who is providing services to the government: that you cannot breach the trust of the government or the Australian people.

“So if criminal charges or other charges can be laid, we’re looking forward to the outcomes of that investigation from Treasury.”

Collins was employed by the federal government as part of the Base Erosion and Profit Shifting (BEPS) Tax Advisory Group which advised the government on legislation and policy positions intended to give effect to the Organisation for Economic Cooperation and Development BEPS provisions, including the Multinational Anti-Avoidance Law, the Diverted Profits Tax, and Hybrid mismatch rules.

During his employment, he received confidential information and documentation, which he then shared within PwC and with overseas partners, empowering the firm to create a system that enabled large companies operating in Australia to avoid paying the newly devised taxes.

Following a 2022 parliamentary inquiry into the management and integrity of the government consulting services, internal emails from the PwC allegedly revealed that company executives had bragged about the system and utilised it as a selling point for its services.

Parliamentarians Welcome The Move

Chair of the parliamentary inquiry, which unveiled the extent of the scandal, Greens Senator Barbara Pocock, has welcomed the move.

“I’ve called for this referral to the AFP, and I welcome it.” she said.

“It must investigate the actions of Peter Collins and all the PwC operatives who are implicated in this astonishing chapter.”

Pocock also called on the Labor government to implement a ban on PwC contracts and to support a full investigation by the NACC.

“We need to know the identities of everybody named in the redacted emails released through the Senate and everyone who took part in the marketing of the tax avoidance schemes at PwC. There’s no way they should be allowed to continue in light of this disgraceful rip off of Australian taxpayers,” she said.

“How can our public servants now rely on PwC to handle sensitive Government information when they have clearly broken the trust that has been placed in them and monetised privileged material despite having multiple confidentiality agreements in place.”

She also noted that over the past few days, senate hearings had heard more disturbing stories about inappropriate behaviour and possible misconduct by PwC in relation to government contracts.

“These also need to be investigated,” she said.

“The bigger question remains, are we looking at just the tip of the iceberg; What is going on in the larger industry of big consulting?

“The Senate inquiry into the integrity and management of consultants has important work ahead of it.”