PricewaterhouseCoopers has contracted ex-Telstra CEO Ziggy Switkowski to review the company’s leaking of confidential tax information to the likes of Apple, Google, and Microsoft in a bid to win their business.
Apple, Google and Microsoft are among 23 US tech firms contacted by PwC after an multinational anti-avoidance tax law (MAAL) was announced in the May 2015 budget, in an attempt to sell the overseas giants on its workaround for the legislation.
14 of these firms accepted PwC’s offer, but are believed to have been unaware the plan was hatched with leaked government tax information.
“We deeply regret that we have failed the high standards we set for ourselves as an organisation,” the company said in a statement.
“We now need to re-earn trust, which is why we have taken appropriate action, including the announcement that we will establish an independent review, in relation to our governance, accountability and culture.”
PwC’s former CEO Tom Seymour stepped down from the top role last year, with the firm announcing he would also retire as a partner at the end of September “to enable an orderly transition.”
Switkowski will lead an independent investigation into the alleged wrongdoings, in which he will “consider all aspects of PwC Australia’s governance, accountability and culture, including how the firm applies its professional values and ethical standards across its work,” according to PwC.
Switkowski will “examine the way in which partners and staff are held accountable for their responsibilities, as well as assess the values and behaviours that exist at all levels within the firm.”
The review will begin “immediately” with the findings presented to PwC in September.
Whether these findings will then be made public isn’t clear.
PwC acting CEO Kristin Stubbins said the firm was “committed to learning from our mistakes and ensuring that we embrace the high standards of governance”.
“Dr Switkowski will have access to all the people and information he needs to conduct a rigorous and robust review. We look forward to receiving his report and acting swiftly on its recommendations,” she said.
