Ex-PwC Executive Questioned About Involvement in Tax Scandal

The former head of embattled consultancy PricewaterhouseCoopers (PwC) has denied he allowed the firm to falsely claim legal privilege to withhold documents being examined in investigations by the tax office.

Tom Seymour resigned as chief executive of PwC’s Australian arm in May 2023 after revelations partners at the company had passed on confidential Treasury tax information to boost private sector business.

He appeared on Aug. 2 at a parliamentary inquiry examining ethics in the industry.

In his first public appearance since his resignation, Seymour hit back at accusations PwC held back thousands of documents from the Australian Taxation Office by falsely claiming legal privilege.

It followed evidence given by PwC’s former legal counsel, Meredith Beattie, that the practice had taken place in 2017 and 2018 when the tax office requested documents after it had concerns with the sharing of confidential material.

“There was significant tension between myself and Ms. Beattie about the fact that we were not getting documents delivered to the tax office,” Seymour told the inquiry.

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“I have a view that our legal response was not run well and that we were too legalistic.”

But Beattie said she had raised concerns about the documents being held back.

“Certain parts of the tax group had not been following the protocols—they had not been following the legal engagement letters,” she told the inquiry.

“And the effect of that meant that the privilege claims that had been made … were not valid.”

Seymour told the hearing he had asked lawyers in 2018 to investigate the possible sharing of Treasury documents but was subsequently told no breach had occurred.

“I would love that not to have happened,” he said.

Earlier, former Telstra boss Ziggy Switkowski, who was appointed to lead an independent review into PwC’s Australian operations, said he was not able to speak with Seymour as part of the probe.

He said he was only able to speak to lawyers representing the former chief executive.

Switkowski told the inquiry the governance of PwC was poor during the controversy.

“You could see what they were doing and how it was, at least superficially, like every other firm, but in practice, it was not really match-fit for what they had to confront during that period,” he said.

Seymour said he had not been able to meet due to the death of his father around the time he was asked to hold a meeting.

The inquiry was told PwC’s chief risk officer Jan McCahey did not know for almost a year that its newly appointed boss Kevin Burrowes received $1.2 million (US$0.8 million) extra from the firm’s global headquarters on top of his $2.8 million (US$1.8 million) salary.

Burrowes was named as chief executive in July 2023 following the Treasury scandal, but it was not until June 2024 that McCahey was told about the top-up in pay.

“I wasn’t aware of it … I was surprised to learn of it at the time,” McCahey told the inquiry.

“(When I found out) I can’t remember what I said. I was surprised.”

Burrowes said while the salary top-up was disclosed to the firm’s board, its risk officer was not told.

Labor senator and inquiry chair Deborah O’Neill said Burrowes could be seen as “serving two masters” with the payment.