PwC completes TPB-ordered punishment
The firm has declared full compliance with training and confidentiality measures ordered by the regulator after the tax leaks scandal.
PwC has completed its TPB-ordered punishment after handing in its final compliance report to the regulator, marking the end of a two-year oversight process in the wake of the tax leaks scandal.
The report, dated December 2024, said 1,084 partners and staff had completed online training courses on tax and ethics, including the recent TASA determination.
PwC said it also took steps to “maintain and to refresh” its central confidentiality agreements register, mandated by the TPB to prevent a repeat of the actions of former partner Peter Collins.
“It is considered that PwC AU complies with items 1, 2 and 3 of the TPB order,” the report said.
“We note that this is the final report required under the TPB order.”
The orders were made by the TPB in late 2022 after completing its investigation into the firm and Collins.
It required PwC to implement measures in 2023 and 2024 to address conflicts of interest, improve ethical conduct and ensure tighter controls over the handling of government consultations.
The TPB’s directive included mandatory six-monthly training for tax partners and staff, improvements to the firm’s central confidentiality agreement register and regular reporting to the TPB and PwC’s executive team on compliance progress.
In its final report, PwC said that 100 per cent of eligible staff completed training modules on the TASA code of conduct, firm policies on conflicts of interest and managing conflicts arising from confidential consultations.
PwC said the training modules also incorporated recent changes to the TASA code of conduct, such as section 45 of the code determination and significant breach reporting, “reinforcing our commitment to the TPB”.
Section 45 requires tax practitioners and firms to notify current and prospective clients of “any” matter that might significantly influence a client’s decision to engage or continue to engage the practitioner to provide tax agent services.
PwC said: “In November and December 2024, we ran virtual training for tax and private tax partners and staff on section 45 of the determination.”
“In these virtual sessions, we walked through the elements of section 45 and the changes PwC is implementing to ensure compliance. This training was also recorded and offered to any staff who could not attend.”
The report also updated the TPB on PwC’s confidentiality agreement protocols which require staff to seek approval before participating in regulatory reform or policy consultation with government agencies, regulators or professional bodies.
It noted all non-disclosure agreements had been migrated to a “contract lifecycle management” system in mid-2024, with “well over” 800 agreements now catalogued in the register.
“The requirements under the confidentiality agreement policy … have not been changed,” PwC said. “We are now transitioning our processes to a business-as-usual approach to ensure the work completed is maintained effectively in a sustained fashion.”
PwC is also expected to publish an independent report on its “commitments to change” plan shortly.
It will assess the implementation of reforms in response to a scathing internal review by former Telstra boss Ziggy Switkowski, which found a “shadow” culture in the firm where unethical behaviour was tolerated in the pursuit of profit “growth at all costs”.
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