PwC is once again allowed to bid for and win government contracts. Photo: Region.
Another former PricewaterhouseCoopers partner has been deregistered as a tax agent for dodgy practices and false declarations while he was with the firm.
The Tax Practitioners Board has terminated the registration of Richard Gregg and imposed a four-year ban prohibiting him from re-applying for a tax agent licence.
The TPB found Mr Gregg to have breached multiple obligations under the Tax Agent Services Act 2009 and the Code of Professional Conduct, which all registered tax practitioners must comply with.
Because of that, the TPB ruled Mr Gregg is no longer fit and proper to be registered as a tax agent.
The TPB said that in his capacity as a PwC partner and a specialist in Research & Development, Mr Gregg made false or misleading statements in applications for the Research & Development Tax Incentive (RDTI) lodged on behalf of clients.
These applications did not meet the eligibility requirements for the RDTI and could not be substantiated.
The board said Mr Gregg’s failure to scrutinise his clients’ RDTI claims resulted in significant tax shortfalls and penalties imposed on the clients.
Mr Gregg’s behaviour also resulted in significant time and resources being expended by the Australian Taxation Office and Industry Innovation and Science Australia, both of which are responsible for fairly assessing RDTI applications.
The ATO determined the clients affected by Mr Gregg’s conduct had a cumulative tax shortfall of more than $11 million.
The tax office imposed cumulative penalties of more than $800,000 across those clients.
TPB chair Peter de Cure said such failures of integrity would not be tolerated in the tax system.
“Clients rely on registered tax practitioners to provide a competent service,” Mr de Cure said.
“If tax practitioners act carelessly, it’s the clients who end up paying. In this case, Mr Gregg’s clients were reliant on his RDTI expertise, and they now face penalties due to his negligence and disregard for the law.
“There is no place in the tax and super systems for tax practitioners lacking integrity. Such actions pose a serious risk to the tax profession.
“We expect a high standard from registered tax practitioners. Anything less jeopardises the public, who trust tax practitioners to get their tax and super affairs right.”
Mr de Cure said the government’s RDTI program is all about boosting the country’s competitiveness and productivity, encouraging businesses of all sizes to engage in research and development projects they might not otherwise pursue.
“The program is especially helpful in supporting smaller companies, making the incentives less complex,” he said.
“Given the specialised nature of Research & Development and the recent issues we have seen in this area, it will be one of our compliance focuses for 2025-26.”
The TPB regulates tax practitioners in order to protect consumers and ensure the integrity of the profession and the tax system.
It aims to assure the community that tax practitioners meet appropriate standards of professional and ethical conduct.
In 2023, the TPB deregistered Peter Collins, also a former PwC tax partner, over integrity breaches.
Mr Collins shared confidential Treasury information while working at the giant consultancy firm and advising the Federal Government on new tax laws to stop multinationals from avoiding paying tax in Australia.
He distributed the information among dozens of PwC partners to help them form strategies for their multinational clients so they wouldn’t have to pay the taxes he was helping the government to develop.
PwC earned millions of dollars by helping its clients avoid Australian taxes.
The TPB found Mr Collins failed to act with integrity, as required under his professional, ethical, and legal obligations, and terminated his tax agent registration.
An Australian Federal Police investigation was launched and parliamentary inquiries were instigated.
PwC was temporarily banned from engaging in work for the Commonwealth, but the recently published findings from a Finance Department review have lifted that ban.
PwC is once more free to bid for and win consultancy contracts with the Australian Public Service.
Mr Gregg’s integrity breaches, for which he has been deregistered, do not relate to the Treasury leak scandal.
