PwC Australia remains subject to ongoing investigations nearly three years after it was referred to the National Anti-Corruption Commission (NACC) in connection with a tax leaks scandal, according to government documents obtained through Freedom of Information laws. The documents reveal that PwC has repeatedly informed the Department of Finance that it is cooperating with multiple probes, including those by the NACC, the Tax Practitioners Board, and the Australian Federal Police (AFP).
The tax leaks controversy centers on confidential government tax briefings improperly shared with multinational clients, enabling efforts to reduce their Australian tax liabilities. This led to senior leadership changes at PwC, including the departure of chief executive Tom Seymour, and the firm agreeing to divest its government consulting arm, which was later rebranded as Scyne Advisory under private equity ownership. Under a non-compete agreement, PwC pledged not to bid for public service contracts until July 2025 and cannot compete with Scyne for general government work until November 2028, though it may pursue contracts with public companies and non-government entities. Internal government estimates predict up to A$22 billion in Commonwealth contracts will be renewed over the next four years.
Since July 2023, when Greens Senator Barbara Pocock formally referred PwC to the NACC, the anti-corruption body has not publicly disclosed the status of its investigation. Meanwhile, the AFP has conducted raids on several properties but has yet to file charges. PwC conducted an internal inquiry led by law firm Linklaters, the findings of which have not been released.
Correspondence between PwC and the Department of Finance sheds light on the firm’s efforts to reassure government officials about its compliance and governance standards. PwC reported 84 misconduct incidents, eight considered serious, with some involving workplace conduct breaches and others related to business integrity or misappropriation. The firm also addressed inquiries about a data breach involving the internal emailing of non-client information to a personal email account, which it characterized as a minor technical workaround without exposure of client data.
Additional scrutiny has focused on PwC’s audit practices. Two independent reviews identified deficiencies in risk assessments and evidence adequacy related to employee benefit expenses and unlisted investment valuations. Chartered Accountants Australia and New Zealand recommended that PwC increase the frequency of its reviews of confidentiality agreements to every six months and implement quarterly declarations from senior staff confirming that ethical issues have been reported internally.
The Albanese government’s response to alleged misconduct extends to other consulting firms, with KPMG Australia recently referred to the NACC over similar confidentiality concerns. The government announced it would commission an independent review of KPMG’s culture, ethics, governance, and integrity, potentially imposing reporting requirements akin to those placed on PwC.
A PwC spokeswoman stated the firm has implemented significant reforms since the tax scandal and said it respects ongoing investigations, declining further comment on active matters. Finance Minister Katy Gallagher’s office continues to oversee PwC’s compliance under the reporting arrangements established as part of the firm’s government contract agreements.