PwC has suspended nine partners and pledged to publish the results of an internal investigation by the end of the year in a bid to contain the tax leak scandal involving its Australian operations. According to reports from the Financial Times, the company ended up in the storm after the publication of emails showing that it had used confidential information to obtain new business. The suspension of nine partners – including members of the executive and governance councils – is the latest escalation of a scandal that erupted in February.
PwC said it would end the work it does with the federal government in Australia to minimize conflicts of interest. According to the company, PwC staff were told to “go on leave with immediate effect … pending the outcome of the investigation”. Former PwC international tax chief Peter Collins was banned this year by Australia’s tax regulator for sharing insider information about the government’s plans to change tax evasion laws with his colleagues. The emails showed how PwC had used confidential information of this type to get new business.
