The PwC Tax Scandal

[Gavin Excell]

This has ramifications not only in the immediate term for those facing possible criminal charges at PwC, but also for governments and how they are totally reliant on consultancies for what historically had been a Public Service capability.

On a lighter note I found this on PwCs website amusing :

"PwC Australia brings together people, business, technology and ideas to build trust in society and solve important problems"

 

[Gough]

This is going to be huge.

 

[Power Raid]

This has ramifications not only in the immediate term for those facing possible criminal charges at PwC, but also for governments and how they are totally reliant on consultancies for what historically had been a Public Service capability.

On a lighter note I found this on PwCs website amusing :

"PwC Australia brings together people, business, technology and ideas to build trust in society and solve important problems"

Personally I prefer a situation where the regulator or police investigate a third party entity like PWC when something goes wrong, rather than the government investigating itself when things go wrong.

Perhaps this is why we are actually hearing about this, supporting the demarcation between operations and governance is important



We only have to look at the DPP dropping 500 charges in WA for govt employee fraud, despite locking up the "turn coat whistle blower" for 12 years.

 

[MC Extra Dollop]

Seems like a disaster waiting to happen to outsource these functions to a company with an unavoidable conflict of interest.

Hope the media reports on this proportionately to the fury we usually see directed at the welfare cheats ripping off a few hundred dollars of "our money" a fortnight.

 

[Not Important]

top journalism from the saturday paper. and a succinct tweet by rex patrick. sad day when he just missed re-election to the senate.

 

[burge13]

Imagine thinking this wont be swept under the rug. They'll get a new contract on top of it

 

[Crankyhawk]

Personally I prefer a situation where the regulator or police investigate a third party entity like PWC when something goes wrong, rather than the government investigating itself when things go wrong.

Perhaps this is why we are actually hearing about this, supporting the demarcation between operations and governance is important



We only have to look at the DPP dropping 500 charges in WA for govt employee fraud, despite locking up the "turn coat whistle blower" for 12 years.

regulators should be able to investigate government/ public service behaviour too, so not sure there is an advantage in using PwC (beyond the corrupt reasons such as the veil of bullshit commercial confidence and the ability to pay megabucks in "consultancy" fees to donors)

 

[Gavin Excell]

ATO will have a fair few questions thrown at them at Senate estimates tomorrow

 

[Gavin Excell]

PwC sends nine partners on leave, chairman exits

The embattled firm will also “ringfence” all federal government advisory work as part of a suite of measures designed to signal it is taking decisive action.

www.afr.com

 

[Power Raid]

regulators should be able to investigate government/ public service behaviour too, so not sure there is an advantage in using PwC (beyond the corrupt reasons such as the veil of bullshit commercial confidence and the ability to pay megabucks in "consultancy" fees to donors)

we have seen a number of times where self regulating bodies fail to meet expectations.

I always feel more comfortable with regulator independence. You only have to look at the casinos with the recent issues with crown being known in 2003. The fremantle port corruption known in 2002. Where the owner/ part owner and the regulator are one of the same (left hand and right hand), it rarely results in timely action.


I feel the bigger issues of politicians using a department or an outsourced entity like PWC is accountability. They simply request a study with a preferred outcome and magically receive a document supporting that outcome.

So much wasted $s and blatant corruption.


Watch the $2B hydrogen cash splash. The parties receiving the benefit claimed they are recipients prior to the announcement. How can the government announce a scheme, yet commit to a process but have already agreed to who is getting the funds? I guess we are awaiting a report.

 

[Gavin Excell]

we have seen a number of times where self regulating bodies fail to meet expectations.

I always feel more comfortable with regulator independence. You only have to look at the casinos with the recent issues with crown being known in 2003. The fremantle port corruption known in 2002. Where the owner/ part owner and the regulator are one of the same (left hand and right hand), it rarely results in timely action.


I feel the bigger issues of politicians using a department or an outsourced entity like PWC is accountability. They simply request a study with a preferred outcome and magically receive a document supporting that outcome.

So much wasted $s and blatant corruption.


Watch the $2B hydrogen cash splash. The parties receiving the benefit claimed they are recipients prior to the announcement. How can the government announce a scheme, yet commit to a process but have already agreed to who is getting the funds? I guess we are awaiting a report.

AFP are investigating PwC who on another hand, completes audits for them

 

[QuietB]

This is a massive threat to the future employment opportunities for all our politicians.

They can’t all be arms dealers.

 

[Power Raid]

AFP are investigating PwC who on another hand, completes audits for them

I'm comfortable with audits as this is not a conflict if one appreciate audits are not designed to search for fraud. The old watch dog not blood hound concept.

In the case a forensic audit was completed, then this has natural layers of controls being:
1) separate from the financial auditor but would report to the auditor via the risk committee
2) the reporting would be to the risk committee not the board
3) the board and risk committee are forced to respond given their is two independent parties aware of an issue

where is falls over as we have seen in WA is the DPP get the nod to make the issue go away. Incompetence, poor handling of evidence or other is the excuse

'Most unsatisfactory': Alleged accomplice in Australia's biggest bureaucrat fraud has 542 charges dropped

The alleged accomplice of a corrupt WA public servant who defrauded taxpayers of around $22 million has all charges against him dropped, two months before Jacob Daniel Anthonisz was due to stand trial.

www.abc.net.au

but lock the turn coat whistle blower up to teach government employees a lesson not to open their mouth

 

[Power Raid]

what I'm keen to understand is, which was the following facts; partner doing work for one govt agency coming back to the office and saying

1) "the govt wants to create an IT system to stream line grants, do you have the time, resources and is this something you can do? If so, I suggest you start a tender document"

2) "Here are the government grant thresholds and criteria for the grants. Can we maximise outcomes for our clients?".

I don't think this is the case, as this would go to a morning round table across all divisions and or stay within tax

3) The govt wants to creat an IT system to stream line grants. They have a budget of $500k, so make sure your tender comes in under $500k.

4) other?

 

[Saint]

Guaranteed they get a slap on the wrist after multiple public shows of contrition, hoping its enough.

Partner got a job trying to tighten up the tax regime, while at the same time planning how he would help clients get around those regulations.

They, and all other tax avoidance professionals, should not be permitted to provide any advice at all to treasury or the Government that it funds, ever again.

 

[Mofra]

Imagine thinking this wont be swept under the rug. They'll get a new contract on top of it

The opposite - governments of all persuasions care a lot about optics.
$266m in contracts likely to go to direct competitors.

Anyone remember Arthur Anderson? They acted for Enron & a US telco, dodgy accounting saw them fold very very quickly. They were virtually considered as one of the 'big 5' (with PwC, Deloitte, EY & KPMG)

 

[Gavin Excell]

Guaranteed they get a slap on the wrist after multiple public shows of contrition, hoping its enough.

Partner got a job trying to tighten up the tax regime, while at the same time planning how he would help clients get around those regulations.

They, and all other tax avoidance professionals, should not be permitted to provide any advice at all to treasury or the Government that it funds, ever again.

The trouble is the public service may not have the capability or in depth understanding of the tax system. Hence the reason they go to Consultancy.

 

[QuietB]

The trouble is the public service may not have the capability or in depth understanding of the tax system. Hence the reason they go to Consultancy.

That is an outcome manufactured by the LNP

 

[Gough]

That is a outcome manufactured by the LNP

This is looking a lot like another one for the NACC.

 

[Dirty_banchez]

PwC sends nine partners on leave, chairman exits

The embattled firm will also “ringfence” all federal government advisory work as part of a suite of measures designed to signal it is taking decisive action.

www.afr.com

Nonsense from PwC that they have decided to now ringfence its government work. The government needs to drop the hammer on these guys.

 

[QuietB]

This whole thing is ludicrous. Even the Federal Police cannot investigate because they have too many conflicts. Seriously WTF

This is what small government looks like hey - total failure

 

[fs88]

Absolute joke that Roxy Jacenko’s husband Oliver Curtis got a year’s jail for $1m of insider trading.

These coats would have made hundreds of millions from essentially insider trading and will farcically most likely get a slap on the wrist.

All of those pwc clients benefitting from the tax breaks should also have their financials audited.

 

[Gough]

It would be interesting to know what the Morrison government knew about this.

 

[blueboy25]

It would be interesting to know what the Morrison government knew about this.

Not sure if Prime Minister Morrison knew about it but Treasurer Morrison would have been all over it.

 

[Gough]

Geebus.