Former KPMG boss turned ATO chief Chris Jordan used tax haven, whistleblower alleges
A redacted version of the KPMG whistleblower documents tabled in parliament. (ABC News: Parliament of Australia)
Ex-ATO boss Chris Jordan allegedly paid 'little or no income tax' while at KPMG
Former taxation commissioner Chris Jordan worked at KPMG in the 1990s and 2000s. (ABC News: Mark Moore)
In short:
Documents reveal allegations former KPMG partner Chris Jordan hid money in an offshore bank account to avoid paying tax in the late 1990s. Jordan went on to become the Australian Taxation Office commissioner.
In this article:
A former KPMG partner who went on to lead the Australian Taxation Office (ATO) for more than a decade, Chris Jordan, is alleged to have avoided paying tax during his time at the firm, according to documents seen by ABC News.
Mr Jordan also allegedly "promoted tax schemes to clients" and received $1.2 million in "illicit and secret" commissions during his time at KPMG.
Redacted documents detailing how KPMG audit partners allegedly misused client data and then mishandled a whistleblower's complaint about it have been released by a parliamentary committee looking at the KPMG audit leaks scandal.
The most recent release of documents from the committee reveals allegations that KPMG partners, including Mr Jordan, engaged in alleged inappropriate behaviour while employed by the firm in the late 1990s.
The ABC has seen an unredacted version of one of those documents: a July 21, 2021 letter sent by a second whistleblower who refers to themselves as a "concerned taxpayer".
That letter includes allegations Mr Jordan received lucrative payments off the books during his time at KPMG, and that he allegedly hid the money in a secret bank account in the Isle of Man to avoid paying tax in Australia.
Senator Deborah O'Neill is the politician who made KPMG's whistleblower scandal public. (ABC News: Stuart Carnegie)
It also identifies another former partner, Wayne Jones, who worked in KPMG's tax area, as allegedly participating in the tax scheme.
The allegations were again raised by the same whistleblower in another document sent in 2023, a redacted version of which has been tabled in parliament.
ABC News has also seen the unredacted version of this letter.
ABC News is not suggesting the allegations are true, just that they were made.
Jordan allegedly 'hampered' by alcoholism and cocaine
The whistleblower's 2021 letter said Mr Jordan should not have been appointed to lead the ATO and alleges it was well known that his performance in the top job at the agency was "severely hampered by alcoholism and the use of cocaine".
"During their time at KPMG, [Chris] Jordan and [Wayne] Jones promoted income tax schemes to clients and fellow KPMG partners," the letter said.
"The schemes included 'Copper Doctor' and 'Gold Doctor' — which were the trafficking in tax losses of mining companies — and a host of agricultural and mining arrangements."
A redacted version of the KPMG whistleblower documents tabled in parliament. (ABC News: Parliament of Australia)
It alleged that during his 26 years at KPMG, Mr Jordan "paid little or no income tax".
"In 1998, Jordan and Jones brokered a deal with TSB Lloyds and Rothschild Australia and negotiated a structuring fee of $1.2 million each which they decided to treat as personal income rather than returning it to KPMG," it said.
Mr Jordan was contacted for comment but did not respond. It is understood he has previously denied the allegations.
Mr Jones was also contacted for comment and did not respond.
KPMG declined to comment.
ATO appointment showed 'corruption at the highest level'
The letter said at the time, "there appears to be some tension between Jordan and Jones, as Jordan recently has an apprehended violence order against Jones".
"It is inconceivable that a person such as Jordan could have been appointed to the position of federal commissioner of taxation," the letter said.
"His appointment was political, and no due diligence was carried out. This may be characterised as corruption at the highest level.
"Jordan fails to meet the high ethical standards of a person fulfilling one of Australia's most important roles. Not only does Jordan not meet the values of the Australian Taxation Office, but his performance is also severely hampered by alcoholism and the use of cocaine, dependencies of his that are commonly known."
Chris Jordan is understood to have previously denied the allegations. (AAP: Mick Tsikas)
The whistleblower said in the letter, which was sent when Jordan was still ATO commissioner, that he "should be stood down immediately whilst a thorough investigation of this matter is carried out".
Secret commissions and destruction of evidence
The letter sent by the whistleblower to KPMG on August 30, 2023 also alleges "secret commissions amounting to $2.4 million" received by Mr Jordan and Mr Jones which were "the rightful income of KPMG".
The letter also refers to a recording that the whistleblower claimed contained references to "destruction of evidence" in an ATO investigation that targeted the whistleblower.
KPMG later paid the whistleblower a settlement of more than $500,000 for legal costs.
The Australian Financial Review first reported the $500,000 settlement and details of the alleged misconduct before last Friday's KPMG audit scandal inquiry hearing.
Martin Sheppard (left) and Andrew Yates faced the Senate inquiry this month. (ABC News: Matt Roberts)
KPMG's former chairman Martin Sheppard and former chief executive Andrew Yates were asked about the $500,000 settlement at the hearing.
Mr Yates said the firm had been unable to substantiate the allegations in the letter as they were "very historic".
"We did try and investigate but the passage of time had been so long that we were just unable to find the information," Mr Yates told last Friday's hearing.