Senators slam EY deal with ATO as too lenient
Two senators spearheading the heavy scrutiny of the consulting sector have blasted the Tax Office’s deal with EY over a former tax partner’s alleged tax exploitation schemes, saying it was a “paltry censure” that let the firm off the hook.
Greens senator Barbara Pocock and Labor senator Deborah O’Neill, who are both members of parliamentary committees scrutinising the accounting and consulting industry following the PwC tax leaks scandal, said the enforceable voluntary undertaking EY entered into with the Australian Taxation Office fell short given the alleged conduct of the former partner.
EY is facing further scrutiny from parliament. Getty
“Let’s be clear, this is an incredibly lenient penalty that requires little more than a training program for EY staff to make sure they understand existing policies and procedures at the firm,” Ms Pocock said.
“This is same paltry censure that was imposed on PwC in the wake of the tax leaks scandal and I’m afraid it doesn’t meet the expectations of Australian taxpayers who I can tell you want to see much higher levels of accountability among these firms and an end to the business models and cultures that foster them.”
Ms O’Neill said poor ethical practice and a lack of professional accountability appear endemic in the sector.
“PwC’s misuse of confidential government information brought immense scrutiny on the tax sector, and it is likely that further unethical practice and misuses of confidential information will continue to be uncovered,” she said.
“EY’s enforceable voluntary undertaking with the ATO is a necessary step, but will not address the culture of unethical conduct and unscrupulous profit seeking that has been exposed across the sector.”
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