According to two sources familiar with the matter, PwC Australia allegedly provided Google with confidential information about the start date of a new tax law leaked from Australian government tax briefings. This direct link between a company and the ongoing scandal involving the “big four” accounting firm has come to light for the first time since its revelation in January.
PwC is currently under scrutiny due to a former partner, Peter Collins, who previously advised the Australian government on anti-tax avoidance laws. Collins had shared confidential drafts with colleagues regarding the government’s plans, which were then allegedly used to attract business from multinational companies.
In August 2015, one of Collins’ colleagues reportedly emailed a Google employee to confirm the likely start date of the government’s Multinational Anti-Avoidance Law (MAAL), according to one of the sources. Although the January 1, 2016 start date had already been announced in the government’s budget papers in May 2015, the confirmation of the date came from confidential government briefings, as per the source.
During that time, several organizations had called for the government to delay the planned January 2016 start date. The source mentioned that Collins did not inform Google that the information provided was confidential.
PwC has not publicly disclosed any client involved in the scandal. Reuters could not confirm whether Google was a client of PwC Australia at that time or if it utilized the information in any way.
Google responded to the allegations, stating that while it was disappointing to learn about PwC’s inappropriate sharing of information, it had no impact on their compliance with the Multinational Anti-Avoidance Law. Google asserted that the changes made to its tax structure in Australia were implemented after the law’s passage and through direct engagement with the Australian Tax Office.
PwC Australia, when asked for comment, denied any client involvement in wrongdoing and stated that no confidential information was used to facilitate reduced tax payments by its clients.
The former partner, Peter Collins, could not be reached for comment.
Since being revealed by tax authorities in January, the scandal has resulted in the departure of PwC Australia’s CEO, Tom Seymour, the loss of at least five high-profile clients, and the sale of its government consulting wing for $1.
Lawmakers investigating the scandal requested PwC to provide a list of companies that received confidential information from the Australian Taxation Office about the anti-avoidance law. PwC responded in writing in June, and the information provided aligns with what the sources told Reuters. The letter, publicly released with the company’s name redacted, contained the details.
Tax officials informed parliament in May that they had thwarted several attempts by unnamed multinational firms to circumvent the multinational anti-avoidance law in early 2016, months after the confidential information had been leaked.
