Former PwC Partners Deny Allegations, Creating a Stir
It has been a tumultuous week for four former partners of PwC, as they find themselves at the center of a controversy. Michael Bersten, Peter Collins, Neil Fuller, and Paul McNab were named by PwC's acting CEO, Kristin Stubbins, in an email to partners, accusing them of being "involved in the confidentiality breaches." However, two of the partners, McNab and Bersten, have strongly refuted the allegations and expressed their dismay at PwC's handling of the situation.
McNab voiced his discontent with PwC's decision to only name former partners, stating that he had no prior warning or opportunity to respond. He also disputed the characterization of his own conduct, claiming that he was not involved and trusted that the shared information would comply with confidentiality agreements. Bersten echoed similar sentiments, vehemently denying the allegations and expressing concern about the damage to his reputation caused by PwC's statement.
It is worth noting that Bersten is recognized as an expert in tax audits and legal disputes, rather than multinational tax planning. He previously worked at the Australian Taxation Office (ATO) as the deputy chief tax counsel and has since become a barrister and widely respected authority on tax law. Both the ATO and the Inspector-General of Taxation and Taxation Ombudsman have sought his expertise, with Bersten recently delivering a three-day program on tax law to their employees. Participants praised his sessions as engaging and valuable, emphasizing the importance of understanding these principles in investigations and decision-making.
This situation has put the ATO and the Inspector-General of Taxation and Taxation Ombudsman in an awkward position, as they had recently engaged Bersten to provide training to their staff. The ATO has already postponed a course he was due to teach with the University of NSW, and they may seek an alternative instructor. Bersten, despite the controversy, maintains that he has "nothing to hide" and takes pride in his contributions to providing essential training.
The unfolding events have created a messy and complicated situation for all parties involved. As the allegations and denials continue, the reputational damage and stress faced by the former partners cannot be overlooked. The resolution of this controversy remains uncertain, leaving a cloud of uncertainty over the individuals and their professional relationships.
