The head of the Tax Practitioners Board confirms the regulator has shifted its KPMG probe into a full-scale investigation, even as concerns about bias intensify.
Attention focuses on the way the whistleblower is being characterised, after being described internally as an aggrieved employee.
That language alarms some observers because the TPB is the only regulator able to investigate KPMG as an entire firm, not just individual practitioners.
Critics worry the framing could shape how seriously allegations are treated inside the investigation.
Context around the regulator’s leadership adds another layer.
The TPB chair previously worked as a KPMG partner for nearly 25 years, leaving the firm in 2013.
He also concedes he did not inform the TPB board that a current KPMG audit partner had spoken to him about the scandal, which has swirled around the firm since March.
That omission, combined with his long KPMG tenure, fuels questions about whether potential conflicts are being fully disclosed and managed.
Several people familiar with the situation say the TPB chair has continued, as recently as two weeks ago, to float the idea that the allegations might come from an aggrieved employee.
Insiders suggest this framing risks minimising the seriousness of the claims at the heart of the investigation.
KPMG is already under intense scrutiny following other high-profile tax advisory scandals and the TPB previously played a central role in exposing tax leaks involving PwC.
The board’s track record raises expectations that it will take an uncompromising stance, which is why any hint of partiality is drawing such scrutiny.
