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Posted: 2023-05-30 01:48:21

The head of federal Treasury, Steven Kennedy, has labelled conduct by PwC as "clearly disturbing", as he revealed the public release of a trove of emails from the consulting firm was the catalyst for him to call on the Australian Federal Police (AFP) to investigate a significant tax leak.

PwC is under fire for using confidential Treasury information on tax laws to benefit its client base, with the AFP launching a criminal probe into one of its former partners last week.

The firm's former head of international tax, Peter-John Collins, had been enlisted by the government to help design new laws cracking down on multinational tax avoidance.

The Tax Practitioner's Board (TPB) launched its own inquiry into Mr Collins and barred him from practice until the end of 2024, after finding he had used intelligence gathered while advising government to help PwC to prepare its clients for the tax changes.

Since the scandal was made public, the firm's chief executive has quit and nine of its partners have been directed to take leave pending the outcome of an internal investigation.

Labor Senator Deb O'Neill used a Senate estimates committee to quote from a cache of emails between PwC staff about the development of new products for its clients, using the confidential Treasury information.

Senator O'Neill described some quotes from Mr Collins as "famous last words", as he made comments to colleagues that actions and decisions were "ok in practice, until the ATO gets grumpy and figures out the joke".

"I think by any community standard, one could say they're clearly disturbing, and they're relevant to our considerations," Dr Kennedy responded.

"The Senate has done a very good job in exposing these issues.

"And the release of the information on the 2nd of May, from memory, was a crucial piece of information that allowed us to take a step."

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