PwC Australia’s former general counsel Meredith Beattie revealed in a Senate inquiry that the consulting giant would frustrate the Australian Taxation Office’s requests for information by wrongly claiming legal privilege over thousands of documents. Concerns were raised by the ATO in 2017 regarding Peter Collins, the former head of international tax for PwC Australia, sharing confidential information. Although Collins was cleared, the ATO ramped up communication with PwC in 2018, asking for document production.
Beattie discovered that parts of the tax group at PwC were not following protocols or engagement letters, leading to invalid privilege claims in their response to ATO notices. This prompted her to raise concerns with the significant litigation committee within the firm, as the ATO accused PwC of using privilege to hide information from them. Beattie raised these issues with Tom Seymour, the managing partner of the financial advisory team at the time, and launched a review that revealed a culture within the tax team that was problematic in claiming privilege without a proper basis.
When asked about who was responsible for frustrating the ATO by wrongly claiming legal privilege, Beattie reframed the question to ask who permitted the practice that was inconsistent with the firm’s protocols. She mentioned that Tom Seymour, the leader of the tax group at the time, was responsible. Beattie’s concerns about Seymour led her to vote against his elevation to lead PwC Australia in 2020. This testimony was Beattie’s first public disclosure about the tax leaks scandal, and she is expected to provide further evidence in-camera in the inquiry.
The revelation of PwC Australia’s practice of wrongly claiming legal privilege over documents in response to the ATO was a major topic in the Senate inquiry on structural challenges in the audit, assurance, and consultancy industry. Beattie’s testimony shed light on the issue and raised concerns about the culture within the tax group at PwC. The ATO’s increased communication with PwC in 2018 highlighted the seriousness of the situation, spurring Beattie to take action and launch a review to address the improper privilege claims.
The Senate inquiry chair, Deborah O’Neill, questioned Beattie about the responsibility for permitting the practice of wrongly claiming legal privilege. Beattie pointed to Tom Seymour, the leader of the tax group at the time, as the key figure. This testimony highlighted the internal challenges within PwC and the need for improved protocols and adherence to engagement letters. Beattie’s decision to vote against Seymour’s elevation to lead PwC Australia in 2020 demonstrated her commitment to addressing the issues within the organization and holding individuals accountable for their actions.
Overall, Beattie’s testimony in the Senate inquiry provided valuable insights into the tax leaks scandal at PwC Australia and the challenges faced by the organization in responding to ATO requests for information. The inquiry is expected to continue to investigate the matter further, with Beattie and Seymour providing additional evidence in-camera. This case underscores the importance of transparency, proper protocols, and accountability within professional services firms like PwC to maintain trust with regulatory authorities and clients.
