Join us for Episode 5 of Tax Lore on the much requested Big 4 firm, PwC (Price Waterhouse Coopers), tax leak scandal with Australian international tax partner Peter Collins at the centre. We delve into the timeline and the public details of this significant event that sent shockwaves through Australia's largest accounting firm, government and is making headlines in the media in 2023.

In 2016, the Australian Tax Office (ATO) detected multinationals swiftly restructuring their affairs to evade the newly implemented Multinational Anti-Avoidance Law (MAAL). The ATO's diligent compliance teams sprang into action, conducting audits, reviews, and issuing Taxpayer Alerts to thwart potential tax avoidance schemes.

Despite obstacles such as a dispute around Legal Professional Privilege (LPP), the ATO's persistence paid off as they obtained access to internal PwC emails, revealing that confidential information was leaked within PwC and creating concerns about artificial schemes promoted by the firm. This ultimately led to the formal referral of the matter to the Tax Practitioners Board (TPB) in 2020, resulting in significant consequences for Peter Collins and PwC.

As of publication, the AFP is still investigating and criminal charges have not been brought.