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The controversy involving Australian tax leaks may be a police concern.

The Australian government announced today, May 22, that more actions will be taken in response to the PwC tax leaks and that the Australian Federal Police may be consulted in this case.

The accountancy firm's partners have been accused of disclosing private information regarding future anti-tax avoidance measures. According to allegations, PwC partners provided such material to clients in order to win new business.


According to Stephen Jones, assistant treasurer and minister for financial services, "We’ve got Treasury looking at an investigation into what has occurred, and looking at whether criminal charges should be referred to the AFP."


Tom Seymour, the CEO of PwC Australia, resigned on May 9 due to the incident. Seymour will retire in September, when the investigation's findings will be made public, and an independent investigation has already been initiated.


Acting Interim CEO Kristin Stubbins stated: "We are committed to learning from our mistakes and ensuring that we embrace the high standards of governance, culture and accountability that our people, clients and external stakeholders rightly expect."

Since Peter-John Collins, the former head of international tax at PwC Australia, was given a two-year suspension for disclosing government information with coworkers and clients, the company has had a contentious first half of the year.


According to the Australian Financial Review, Seymour issued a statement on May 15 claiming that he was one of the partners who had obtained confidential information through an email exchange.


The Australian government is in turmoil at this case's unraveling. The affair was described as a "shocking breach of trust" by Treasurer Jim Chalmers, and several legal experts have demanded that PwC be prohibited from receiving government contracts.


When businesses are consulted about changes, whether they be tax adjustments or other changes, Chalmers continued, "flogging off the confidential information to make a buck is not consistent with the sort of good faith that we want to see."


As a result of the controversy, the Australian company has now lost three key executives: after Seymour resigned as CEO, partners Pete Calleja and Sean Gregory left the executive board.

By fLEXI tEAM

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