PwC hit with maximum fine

The disciplinary tribunal for chartered accountants has imposed the maximum possible fine on PwC and applied new reporting requirements as fallout from the tax advice scandal continues.

As well as a fine of $50,000, Chartered Accountants Australia and New Zealand (CA ANZ) has censured PwC and imposed a full costs order of $45,668.

The ruling follows a Tax Practitioners Board (TPB) order against PwC early this year over the firm’s misuse of confidential tax advice to the Australian government.

The TPB found that PwC partners shared confidential information with other PwC personnel and existing and potential clients.

CA’s disciplinary tribunal found PwC had breached the association’s by-laws and brought discredit upon itself and the accounting profession.

Specifically, it said PwC failed to address cultural deficiencies and hold others accountable for those actions and this had resulted in the undermining of trust in the firm and the profession.

PwC will be required to deliver progress reports to the association’s professional conduct committee up until at least July 1 2026.

This includes progress reports on the TPB-ordered training of partners and staff on compliance with the code of conduct and management of conflicts of interest, in particular of those involved in confidential tax consultations.

PwC must also deliver progress reports on the implementation of recommendations from the review led by Ziggy Switkowski.

Chartered Accountants ANZ chief executive Ainslie van Onselen said the association was committed to ensuring the highest standards of professional ethics and performance.

“I’m pleased to see the independent Disciplinary Tribunal release its decision after what would have been a complex investigation and process that required time to gather information alongside several concurrent investigations including by PwC itself, the parliament and other bodies,” she said.

CA members recently voted to increase the maximum fines that can be imposed at the Professional Conduct Committee level to $100,000 and at the Disciplinary Tribunal level to $250,000.