Series 8, Episode 8: PwC in damage control following Australian tax policy "corruption" scandal

The Australian arm of consulting firm PwC is embroiled in an unprecedented political scandal following revelations that senior staff sold confidential information on government tax reforms to its multinational clients. PwC is defending allegations that it engaged in a deliberate multi-year strategy to cover up a breach of confidentiality in the tax leak scandal. The form stands accused of "monetising" confidential information that it obtained as a consultant to the government on laws to target multinational tax avoidance. The scandal has led to investigations from the Australian Federal Police (AFP) and the prospect of a referral to the new National Anti-Corruption Commission (NACC). PwC is also navigating a probe from the national accounting body, numerous Senate inquiries, and three internal reviews within PwC, including one led by its global leadership.The case has also cast a cloud over the firm's 900 partners in Australia and 10,000 staff, leaving the organisation in damage control mode. Peter Collins, PwC Australia's head of international tax, has been banned by the Tax Practitioners' Board (TPB) for his involvement in the scheme.In a bid to stem the losses, PwC now plans to sell off its government consulting business, which generates A$600 million in annual revenue, for A$1 to private equity group Allegro. It is estimated that 130 partners and 2,000 staff will leave to join the new entity.In this episode of Compliance Clarified, Nathan Lynch discusses this unfolding corporate disaster with Niall Coburn, a lawyer and regulatory risk expert with Thomson Reuters Regulatory Intelligence in Australia.IMPACT ANALYSIS: Consulting firms warn staff about ethics as PwC misconduct is referred to police: http://go-ri.tr.com/WAlKdrCOLUMN: Australian Senate hands down PwC report, as firm sells government consulting arm for A$1: http://go-ri.tr.com/UKcnL3OPINION: Culture crisis at PwC Australia offers uncomfortable reminders of past accounting scandals: http://go-ri.tr.com/jUlpM6COLUMN: Australian regulatory body investigates PwC over unethical conduct involving U.S. tech giants: http://go-ri.tr.com/7a6KopCOLUMN: Evidence reveals PwC's Australian partners and staff profited from unscrupulous tax leak: http://go-ri.tr.com/27gXDz Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.