PwC global clears international partners of tax leaks wrongdoing

afr.com:

An investigation by law firm Linklaters has cleared overseas PwC partners of using confidential information related to the tax leaks scandal “for commercial gain”, but disciplined six of the firm’s international operatives for not inquiring about the nature of the data.

The finding that the tax leaks matter is mostly limited to Australian partners is critical for the firm because its senior leadership wants to avoid the intervention of any US regulators.

Bob Moritz has intervened in the firm’s Australian tax leaks scandal. Christopher Pearce

PwC Australia has already belatedly reported the matter to the powerful US Public Company Accounting Oversight Board.

In a carefully worded statement on PwC’s global website on Wednesday, the firm wrote that “most” of the international PwC people who received the secret information from PwC Australia “did not know the information was confidential”.

“However, the review found that six individuals should have raised questions as to whether the information was confidential. To the extent that they are still with PwC, their firms have taken appropriate action,” the statement says.

The firm’s global chairman, Bob Moritz, apologised for the tax leaks matter, and said the scandal was a reminder to the firm that there were “always lessons to be learnt and things that we can do to improve as a network”.

“The unauthorised sharing of confidential information and related leadership failings are completely unacceptable and go against PwC’s culture and values,” Mr Moritz said.

“At the same time, I want to acknowledge the important steps that PwC Australia has taken to date as well as the actions outlined in their Management Response, which clearly demonstrate a commitment to change.

“The situation