Corporate whistleblower Tony Watson says a small tweak to current whistleblower protection laws would significantly reduce his risk. Seven months on, nothing has changed.
The findings of Lendlease 's tax audit are a win for the ATO , but it came at a huge cost to the whistleblower behind itBittersweet is the way tax lawyer turned whistleblower Tony Watson describes the Australian Tax Office 's decision to smack global construction giant Lendlease with an initialHe says his sense of vindication, when the ATO 's audit was made public on May 13 this year, was tainted by his sacking and the need to sell the family home, which will be listed for sale on May...
Watson says the description of Lendlease's culture is apt. "Lendlease has lost the capacity to see itself as others see it."He should know. Watson was Lendlease's primary tax adviser for 30 years, working with senior executives and directors. At one stage, he was invited to sit on the board of one of its biggest subsidiaries, as well as due diligence committees and most things the board did that had a tax aspect to it, including acquisitions and capital raisings.
Watson estimates the tax scheme boosted Lendlease's profits by at least $260 million, based on $1 billion of tax deductions.It's the job of auditors to be independent and give a "true and fair" view of the organisation's financial position and affairs. Auditors play a big role in the integrity of the financial system. Banks, investors, and superannuation funds rely on an auditor's independent assessment of financial accounts to make decisions.
"PWC, KPMG, Deloitte and EY have a critical role in reporting on the integrity of the companies in which so much of our superannuation retirement savings are invested. If the quality of audit continues to decline every citizen stands to lose — a lot," she says. In response to a series of questions, Lendlease said its board resolved in 2022 to conduct an audit tender process, with a view to changing the auditor. In May 2023, it said it paused that process. It said it fundamentally rejected Watson's position.
However, if the ATO decides to charge interest and penalties, it will be a lot more than the $50 million Lendlease is estimating.Public sector whistleblower protections have already been shown to be deeply flawed in the cases of two public sector whistleblowers. David McBride wasIn April 2022, Watson decided to take legal action in the Federal Court against Lendlease and his old tax firm Greenwoods & Freehills under the Taxation Administration Act's whistleblower protections.
"The new law provides that a court cannot make a cost order against a whistleblower seeking compensation, to ensure whistleblowers are not deterred from bringing proceedings by potential adverse costs orders," he says."Secondly, the burden of proof is reversed once the whistleblower has adduced evidence that suggests the wrongdoer has engaged in conduct causing detriment to the whistleblower.
Anthony Watson Lendlease Ato Australian Tax Office Whistleblower Whistleblower Protections Corporate Whistleblower Tax Audit
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