Episode 5 - PwC, Peter Collins and the Confidentiality Agreement - Tax Lost, unknown (estimated $180m at risk annually)

06/07/23 • 19 min

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.

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

Previous Episode

Episode 4 - Ogden, 39 packets of Monte Carlo's and Dora the Explorer - Tax Lost, $35,000

Join us on Episode 4 of Tax Lore as we delve into the bizarre deductions of Gary Ogden. The Ogden case is the most notorious and laughable case for pushing the limits of what could be claimed as legitimate expenses.

We explore the strange deductions that raised eyebrows with the Australian Taxation Office, especially so when Ogden's tax agent, David McNeice, was well known for bizarre deductions. Ogden's claims included asserting that his young son provided secretarial services, 39 packets of Monte Carlo biscuits, and even claiming a Dora the Explorer pencil case and crayons as "stationary". Member Frost of the Administrative Appeals Tribunal summarises this case well in one word - "Disgraceful". Tune in to discover all the audacious deductions in detail and what happened to the tax agent who helped Ogden claim them.

Next Episode

Episode 6 - Enron, Arthur Andersen and the Great Shredding - Value lost, $70b USD (highest Enron stock price)

Join us for Episode 6 of Tax Lore as we delve into the notorious Enron scandal and Arthur Andersen's collapse, a tale of deceit, greed, and corruption that rocked the corporate world and led to one of the largest bankruptcies in U.S. history.

We'll be pulling back the curtain on the key orchestrators of this financial catastrophe, former Enron CEO Jeffrey Skilling and CFO Andrew Fastow. We'll explore how their relentless ambition and reckless disregard for ethical boundaries led them down a dangerous path of financial manipulation and fraud.

At the heart of this scandal is the now defunct Big 5 firm Arthur Andersen. Enron and Arthur Andersen used a labyrinth of special purpose entities (SPEs), complex financial structures used to hide Enron's mounting debt and artificially inflate its profits to prop up the stock price. These shadowy entities, while technically legal, were used in a game of smoke and mirrors that deceived investors and regulators alike.

But as with all great crime stories, justice eventually caught up. The fallout from Enron's collapse was seismic, leading to sweeping changes in corporate governance laws, including the enactment of the Sarbanes-Oxley Act of 2002. This landmark legislation was a direct response to the Enron scandal, aimed at preventing such egregious corporate misconduct in the future.

So, buckle up as we journey into the dark heart of one of the biggest corporate scandals in history, unraveling the intricate web of deception that was the Enron scandal and its profound impact on the world of tax and corporate governance. This is a story you won't want to miss.