EY admits staffer drafted papers for alleged tax exploitation partner
EY Australia has admitted another staff member helped draft documents for a former partner who allegedly promoted tax exploitation schemes, but says the second person was working under instructions and is not accused of doing anything wrong.
The admission was made the big four accounting firm’s reply to a series of questions from Greens Senator Barbara Pocock after The Australian Financial Review revealed the Commissioner of Taxation was suing the ex-partner.
A report into EY’s workplace has uncovered problems across the firm. Will Willitts
EY said Australian Taxation Office court documents “set out that an employee at EY drafted documents to give effect to the scheme. The employee is not accused of any wrongdoing,” the firm said in its reply to Senator Pocock. The other staff member is not a partner and not a party to the proceedings in the Federal Court.
The Tax Office alleges the former EY partner promoted three so-called Tax Loss Access Schemes to seven clients between November 2016 and April 2021. The ATO sent a notice to EY in June 2021 which first raised some of the allegations that are now before the Federal Court. EY is not a defendant in the case.
“The commissioner has alleged that the documents were drafted at the direction of the former partner. There are no allegations against any other employee or EY,” the firm said in a statement to the Financial Review.
“It has not been alleged by the commissioner, and we have no reason to believe that any other EY partner or staff member acted inappropriately. As a result, no other EY partners or staff member were sanctioned in relation to the actions of this isolated individual.”
The EY staff member was junior to the partner. Non-partner staff are critical to the
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