PwC tax scandal has exposed partnerships as regulatory havens

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PwC tax scandal has exposed partnerships as regulatory havens
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The loopholes that allow large accounting firms that look, act and behave much like corporations without being regulated in the same way should now be closed.

has exposed two glaring loopholes in the law where an unincorporated partnership structure is used by large firms.

These loopholes should be closed. They can be closed by amending the Corporations Regulations to limit the maximum number of partners in an unincorporated partnership to 100. The Switkowski report found an “accumulation of poor practices, which went unexamined and uncorrected for many years”. However, the issues not covered include possible breaches of directors’ duties under the Corporations Act − those duties did not apply to directors or managers of the PwC Australia partnership.For the same reason, there could not be an independent investigation by ASIC into the conduct of those at the helm of the firm.

Assume that an accounting firm, Partnership C, engages in cartel conduct with a competing accounting firm, Partnership D, by fixing the lowest prices they will charge for various services to governments.

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