A Senate report has criticised an ongoing coverup, as the PwC tax leaks scandal continues. 

A 48-page interim report, “PwC: The Cover-up Worsens the Crime”, presented in the Senate, slams PwC International for its refusal to disclose the findings of an investigation into “the dirty six” overseas partners implicated in the scandal.

The committee's report criticises PwC's use of “legal professional privilege” as a symptom of its “problematic engagement” with the committee's efforts to unearth the truth behind the misuse of confidential government information.

The committee accused PwC Australia of a deliberate multi-year strategy to cover up its breach of confidentiality - leaking sensitive government information on new tax laws to its clients - as company personnel worked to monetise the information.

PwC Australia has yet to demonstrate that it reformed its operations “beyond superficial commitments to change”, the report says.

Despite repeated demands, PwC Australia has provided information that is “vague at best” regarding the accountability of current and former partners. 

This lack of transparency is seen as a key factor exacerbating the firm's reputational damage. 

The committee points out; “The failure of PwC to be completely open and honest as per the committee’s recommendations in its first report is reflective of PwC’s failure to genuinely change”.

Adding international dimension to the scandal, the US Public Company Accounting Oversight Board (PCAOB) has fined PwC Australia US$600,000 for late disclosure of the tax leaks scandal. The fine is the first action by an overseas regulator in this matter.

The report also addresses the internal power dynamics within PwC, noting the imposition of “supervised remediation” by PwC International on its Australian counterpart. 

This move, including the appointment of Kevin Burrowes as interim CEO, is a major intervention to correct the firm’s governance and cultural deficiencies.

Criticism extends to former PwC Australia CEO Luke Sayers, with the committee finding aspects of his testimony “implausible” and questioning the credibility of his evidence regarding the scandal. 

“Taken together, the evidence points to the unethical behaviour in PwC being ignored by senior leadership during Mr Sayers term as CEO and subsequently,” the report states.

In light of these findings, Senators Deborah O’Neill and Barbara Pocock laid out their concerns over PwC Australia’s initial response to the scandal and its continued attempts to mislead. 

“The committee does not see how PwC can recover [its] reputation while it continues to cover up because the two are incompatible. Indeed, the cover-up worsens the crime,” the report concludes.