EY boss criticises PwC over ‘deeply disturbing’ tax leaks scandal
The head of big four consulting firm EY has criticised rival PwC over the firm’s tax leaks scandal, saying the “deeply disturbing and disappointing conduct” has rightly triggered “intense scrutiny” of the whole sector.
EY Oceania chief executive and regional managing partner David Larocca told the Senate inquiry into consulting, which was triggered by the tax leaks matter, that his firm did not operate in the same way as PwC.
EY chief executive David Larocca at the inquiry on Tuesday. Martin Ollman
His opening statement to the committee hearing, held in Canberra on Tuesday, also covered how the firm has more restrictions on its partners than PwC, why EY’s plan to split into two firms failed, and why it invited the scrutiny of former sex discrimination commissioner Elizabeth Broderick to investigate its culture.
“I want to specifically address the conduct that triggered this inquiry by saying that at EY we don’t deliberately breach confidentiality. We don’t market tax minimisation schemes,” Mr Larocca said.
“We don’t use blanket legal professional privilege claims to frustrate regulators, and our business model is not built on condoning rewarding, or covering up this kind of behaviour.”
PwC staff have been accused of carrying out all of these activities in the past.
Mr Larocca said the tax leaks scandal was “very serious and damaging to public trust”.
“Therefore, our entire industry must accept the critical importance of integrity, confidentiality, and ethics in our actions and behaviours.”
He said it was “right” that “a failure by any part of the industry” was “subject to intense scrutiny”.
“While there be no doubt the insights that emerge from this process that will apply to the whole industry,” Mr Larocca said.
“I want
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