Thursday, September 21, 2023
HomeEconomyPwC Australia could lose government audit contract, Treasury chief says

PwC Australia could lose government audit contract, Treasury chief says

Lewis Jackson

SYDNEY (Reuters) – Australia’s Treasury’s A$1 million audit contract with PricewaterhouseCoopers (PwC) will be closed this year, an official told a Senate hearing. It may not be renewed when it expires amid the scandal over the company’s misuse of a secret government tax scheme.

The global professional services firm was shocked after a former Australian tax partner negotiated with the government over laws to crack down on corporate tax avoidance. Prepare confidential drafts with colleagues to attract investment.

While calling for a ban on the company from lucrative government contracts, Treasury Secretary Steven Kennedy told senators on Tuesday that the violations were “clearly troubling” and that the department would review a value The nearly $1 million PwC audit contract is due to expire at the end of the year.

The wider breach was referred to police last week.

PwC did not immediately respond to a Reuters request for comment on the audit contract.

Kennedy defended consulting outside tax experts and said cutting off large expert communities made no sense as long as conflicts of interest were managed.

Treasury officials told senators that nondisclosure agreements had been renewed and the department had written to PwC and other firms asking if their governance processes were appropriate Confidential tax advice following PwC tax leak.

The company’s acting chief executive, Kristin Stubbins, who took the job after her predecessor resigned earlier this month following the scandal, said in an open letter on Monday apologized and said nine unnamed partners had been placed on leave.

However, the company did not disclose the names of the dozens of employees and multiple clients cited in an email cache showing how a confidential draft of the new rules could be used to seek legal ties with U.S. tech companies such as Company cooperation.

Greens Senator Barbara Pocock’s 36 list in an email on Friday told the committee that PwC was in the government’s tax advisory Failure to act with integrity during this period.

“I have seen a case where a group of predatory tax avoiders are actively acquiring confidential information and relationships, and they are very concerned about making money from these very large tax avoiding multinational corporations. Way to salivate,” she said.

Stubbins’ open letter on Monday said there was “a culture of aggressive marketing in our tax business” at the time of the tax policy leaks and that some of the group’s leaders “allowed profits to be placed in the over purpose”.



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