PwC tax scandal

Last updated
The Treasury Building, Canberra Australian Treasury.JPG
The Treasury Building, Canberra

The PwC tax scandal was a scandal involving PwC's abuse of Australian Government secrets to enrich itself and its corporate clients.

Contents

PwC, and other Big Four accounting firms, give advice to governments on writing tax law, and also corporations seeking to avoid those laws. This conflict of interest came to a head in 2015, when PwC leaked secret Australian Government tax plans to corporations, including Google, [1] and used their privileged access to help corporations avoid a law they themselves helped write. The scandal has major implications for governments and consulting businesses in Australia, particularly PwC itself.

Following the scandal's public disclosure in 2022, PwC attempted to depict the scandal as a single individual acting alone, but later revelations indicated that the corruption was widespread, and included PwC Australia's CEO. Further revelations came to light that have implicated other organisations in the Australian public service and consulting industry, and which became the focus of a broader discussion about government outsourcing. [2]

A Senate Committee concluded that PwC had engaged in a deliberate strategy over many years to cover up the breach of confidentiality. [3]

Context

The scandal occurred in the context of increasing privatisation in Australia, which began to accelerate in the 1990s. In 2015, the size of the public service was capped to 167,596 employees, which saw the public sector become increasingly reliant on outsourced labour, particularly from consulting firms. [4]

From 2013 to 2023, state and federal government contracts for the Big Four accounting firms increased by 400%, [5] and 1,270% by the federal government alone. [6] By 2023, total federal and state spending on consultants totaled $20.8 billion per year, [7] with $5 billion spent by the federal government alone. [8] The federal government was PwC Australia's biggest client, with over $500 million in yearly contracts by 2023. [9]

The general trend has been condemned as privatisation by stealth, especially for firms with a clear vested interest, like Deloitte, EY, KPMG, PwC influencing tax law. [10]

Leadership

Luke Sayers served as CEO of PwC Australia between April 2012 and May 2020, [11] the breaches by Peter Collins took place during this period of time. [12] Tom Seymour succeed Sayers in May of 2020 until his departure as a result of the PwC Tax Scandal. [13]

Treasury development of OECD tax law

The front cover of the legislation which contains the MAAL - the Tax Laws Amendment (Combating Multinational Tax Avoidance) Act 2015 MAAL Law 2015.png
The front cover of the legislation which contains the MAAL - the Tax Laws Amendment (Combating Multinational Tax Avoidance) Act 2015

In 2012, the OECD and G20 started a project on tax base erosion and profit shifting, to try to reduce tax avoidance by closing loopholes in tax laws for multinational corporations. The Australian Treasury was tasked with carrying out the Australian implementation of the project.

In 2013, the Treasury engaged PwC partner Peter Collins to provide advice on the development of the new laws. Collins, a Melbourne resident, was the head of PwC Australia's international tax group.

This work culminated in the Multi-national Anti-Avoidance Law (MAAL), which was passed in 2015, coming into effect at the start of 2016. [15]

Breach of confidentiality

From when Peter Collins began his work at Treasury in 2013, he signed three separate confidentiality agreements to protect the secrecy of the work. [16]

However, Collins violated these agreements, sharing confidential Treasury information with at least 53 partners at the firm, including in the tax advisory arm. [15] This confidential information allowed PwC tax advisors to develop strategies to counter the new tax avoidance law, before the law was published in 2015.

PwC claimed that confidential information was not shared with clients, except one, later revealed to be Google. [17] [18] However, PwC used the confidential information to advise at least 14 companies in how to avoid the law, earning at least $2.5 million for the firm. [19] Among the companies which attempted to apply PwC's advice to avoid the new tax laws were Uber and Facebook. [20]

ATO response

When the tax avoidance law came into effect in 2016, the Australian Taxation Office (ATO) noticed companies reacting to the new law unexpectedly quickly, restructuring their operations to avoid the new scheme. The ATO issued notices to 3 companies to amend their structures, which prevented the new scheme from being implemented. [21] It was estimated this prevented $180 million from being lost annually. [22]

The ATO wanted to investigate the situation to determine how the scheme could have been developed so quickly, especially given that some of the corporations were clients of PwC. The ATO inquired about its suspicions with PwC on multiple occasions, sending at least 46 formal notices to provide information, and raising their concerns directly with then chief executive Luke Sayers. [23] [24] Sayers later said he did not recall the requests. [25]

However, PwC refused to send the ATO documents by using over fifteen thousand claims of legal professional privilege, claims which the Federal Court of Australia later determined were invalid. [26] [27] [28] The ATO later told PwC in 2022 that it would apply a penalty against the firm for any false privilege claims, however, the penalties were settled confidentially in 2023. [29] The penalties had initially been for $1.4 million, but the ATO halved that fine and blocked any further action, [30] which was attributed to the ATO having mixed up some of the documents. [31]

The ATO made continued attempts to learn more about the situation, without success. In 2018, secrecy laws prevented the ATO from sharing their information with the Treasury, meaning the two organisations could not combine their knowledge. [15] The ATO also reported their suspicions to the Australian Federal Police (AFP), but the AFP refused to investigate without detailed information, which the ATO did not have the powers to gather. [15]

Change of CEO

On 5 March 2020, Tom Seymour was elected as CEO of PwC Australia, replacing Luke Sayers. [32] This was despite internal warnings to PwC's board of directors that Seymour was a risky pick, given his history in the company's tax practice. [33]

Tax Practitioners Board investigation

Offices of the Australian Taxation Office, Canberra ATO building and carpark in Civic April 2021.jpg
Offices of the Australian Taxation Office, Canberra

Since the AFP investigation could not proceed, the ATO referred their suspicions to the Tax Practitioners Board, a government body responsible for regulating the tax advisory industry. The Tax Practitioners Board (TPB) regulates tax practitioners to protect and assure consumers that tax practitioners meet appropriate standards of professional and ethical conduct.

The matter was referred on 2 July 2020, and the TPB commenced an investigation in early 2021. [34]

Michael O'Neill led the investigation into the PwC scandal, as CEO of the TPB. [35] Michael O’Neill and Peter Collins were both members of the same tax advisory group run out of Treasury to advise the federal government on international tax avoidance strategies, and which was the subject of the TPB review. At the time of the scandal in 2015, O’Neill had been an assistant commissioner at the ATO.

Public revelation

In December 2022, the Tax Practitioners Board announced that it had suspended Collins' tax licence for two years, due to unspecified breaches of integrity standards. [15] The TPB also required PwC to provide training on managing conflicts of interest, and provide compliance reports to the TPB, for 2 years. [36]

After an article was published in the Australian Financial Review , [37] the TPB issued a press release explaining its findings. The article prompted a response from treasurer Jim Chalmers decrying the alleged conduct as "an appalling breach of trust."

The two Australian Financial Review journalists who broke the story — Neil Chenoweth and Edmund Tadros — were named Journalists of the Year at the Kennedy Awards. [38] Collins would later be banned from providing financial services for eight years by the Australian Securities & Investments Commission (ASIC). [39]

The CEO of PwC Australia, Tom Seymour, stated that he was deeply disappointed and the firm had taken action to protect against this happening again. [40] Later comments from Seymour indicated that the incident 10 years ago was an isolated one, and the partner responsible was no longer with the firm. [41] However, it was later reported that around 20-30 PwC partners and staff may have been involved. [42]

Senate inquiry

In March, a Senate Committee Inquiry commenced, focusing on the management of government consultants in general. [43] In May, 144 emails uncovered by the inquiry were published by Australian Labor Party Senator Deborah O'Neill. [44]

Contrary to CEO Tom Seymour's previous statements, the emails revealed that the scheme was known to at least 53 PwC partners. At least 14 global companies were advised on the new tax framework, and 3 of those companies attempted to restructure in order to avoid their tax obligations. [15]

They also revealed that Tom Seymour himself had been included in emails relating to the scheme. Seymour stepped down as CEO, but remained employed at the firm. [45] Kristin Stubbins took over as acting CEO.

AFP investigation

On 24 May 2023, the Secretary to the Treasury, Steven Kennedy, referred the PwC matter to the Australian Federal Police (AFP) for a possible criminal investigation. [46] The AFP began its investigation, focusing on Peter Collins in particular. [47]

However, the AFP's impartiality was questioned after a Senate hearing the following day, where it was revealed that the AFP had nine active contracts with PwC for internal auditing. [48] Furthermore, a former NSW police commissioner Mick Fuller was now a PwC partner - and was friends with AFP commissioner Reece Kershaw. David Shoebridge, in the Senate on 21 June 2023 targeted PwC over documents that show how it won a contract with the AFP. Both Fuller and Kershaw met on the 28 July 2022 about the crafting of a contract for PwC to review the Australian Federal Police operations in the ACT. [49] [50] [51] Senator Shoebridge raised serious concerns over the issue of a perceived, or apparent, conflict of interest on the part of the AFP's commissioner. [52] [53] [54]

SMS messages obtained by Shoebridge revealed about a dozen friendly messages between Fuller and Kershaw in 2023. [55] Kershaw responded that the relationship was strictly professional and thus did not need to be disclosed. It was also revealed that the Chief Operating Officer of the AFP, Charlotte Tressler, had worked for PwC for 13 years, and had been a decision-maker for a $794,000 contract for PwC to review its ACT policing arm. At this point the AFP paused all PwC contracts, while the review was taking place. [56]

In October 2024, the AFP raided PwC's head office in Sydney after a joint parliamentary committee found its international arm was withholding critical information about the scandal. [57] [58]

PwC response

When the story went public in January 2023, PwC stated that a single partner was responsible for the breach, and reiterated that it has "procedures and policies...to prevent this occurring". [59]

When it was later revealed that the corruption was widespread, PwC published an apology in May 2023, admitting to a clear lack of respect for confidentiality, inadequate processes and governance in place, a culture of inappropriate behaviour and lack of accountability. [60]

On 3 July 2023, PwC Australia announced that it had investigated itself. [61] It admitted to multiple abuses of confidential information and other malfeasance identified by the ATO, and determined that the failure lay with the firm's leadership and governance. Eight partners had or would be fired, including PwC Australia's CEO.

Scyne Advisory spinoff

In June, PwC sold off its government consulting business, leaving PwC Australia as a tax advisory firm only. The consulting arm was sold for the price of $1 to private equity firm Allegro Funds. The business was renamed Scyne Advisory. [62] Scyne began with 117 former PwC partners, but would make over 1,500 offers of employment to other PwC staff. Scyne's remuneration model consists of base salary and bonuses, as well as equity in the firm, rather than a direct share of yearly profits. [63]

The senate inquiry revealed that PwC had been intending to split the two sides of the business since 2019. Despite this, in response to a 2019 inquiry on conflicts of interest in consulting, PwC had made a submission stating that they were managing potential conflicts, and that "separating the firm would negatively impact audit quality outcomes if it were to limit access to multidisciplinary capabilities". [64]

Ziggy Switkowski report

In May 2023, PwC announced another review of its Australian operations, headed by former NBN boss Ziggy Switkowski, however, further details clarified that the review would not examine past conduct, strictly limited to recommendations going forward.

The report revealed a “shadow culture” that operated behind PwC's stated culture and mission. [65] PwC had ignored law-breaking by “rainmaker” partners in the pursuit of profit, the CEO had “excessive power”, and loyalty to powerful bosses was rewarded over questioning the status-quo. [66]

A “high-performance, results-focused culture has been used as an excuse to justify poor behaviour”, and “Some rainmakers were described as the ‘untouchables’ or individuals to whom ‘the rules don’t always apply’.” An “aggressive growth agenda overshadowed and occurred at the expense of the firm’s values and purpose” and contributed to a culture of "growth at all costs" [66]

The report highlighted PwC's deceptive public image: “PwC Australia's glossy PowerPoint presentations sometimes give a false impression of comprehensive and disciplined structures and processes when the reality is much less tidy”

Two law firm reviews

The firm paid two law firms to investigate the tax leaks, but made no commitment to release the results publicly. [67]

On 27 September 2023, PwC announced the results of the investigation by Linklaters. It stated that six isolated individuals should have questioned whether information was confidential, and maintained the innocence of PwC's clients and all PwC employees outside of Australia. [68] Labor Senator Deborah O’Neill countered that “PwC Global were aware of this misconduct for a significant period of time.”

O'Neill called the review a corporate cover-up, [69] while Greens senator Barbara Pocock called for PwC to be banned from future contracts, and said she would refer the company to the National Anti-Corruption Commission when it commences operation. [70]

Employee departures

In July 2023, eight partners left including the former CEO Tom Seymour. [71] The same month PwC agreed to pay back the almost $1 million it received for a 2017 report on the Robodebt scheme that it never delivered, instead delivering an 8-slide PowerPoint presentation. [72] The Robodebt scheme represented another major public service scandal of the time.

In November 2023, 338 staff were made redundant. [73] In March 2024, PwC announced a further 366 roles would be made redundant. [74] [75]

Further investigations

By mid-2023 there were 10 ongoing investigations into PwC. [76] Four parliamentary inquiries were underway, [77] including:

Calls came from transparency advocates, and some politicians, for a ban on political donations from consulting firms, with the Big Four having donated $4.3 million to major political parties over the past decade. [5]

PwC Australia had traditionally sponsored an annual dinner for the government on the night of the national budget. [81] The yearly dinner, which cost $5000 per head, had been held in the Great Hall of Parliament House until 2022. However, in May 2023, PwC pulled out of the event. [82]

Prior conflicts

In late July, it was revealed that the ATO had privately settled a separate matter with PwC which had not been publicly disclosed. The settlement came in March, at a time when the scale of the tax scandal had been publicly stated to be restricted to a single former employee. Additionally, the ATO had known about a potential issue since 2016 but had not acted due to a lack of information. [83]

It was also revealed that PwC had a similar conflict of interest when producing a 2017 review of the government's digital mental health strategy, while PwC owned a 45% share of one of the companies under review. [84]

The Murray-Darling Basin Authority had awarded PwC a $27 million river modelling contract, as well as a contract for auditing the Authority. In June, the Authority sought assurance that PwC had not breached its confidentiality agreements, referring the contracts to its audit committee. [85]

Mike Pezzullo, the secretary of the Department of Home Affairs, stated the scandal demonstrated the need for a National Anti-Corruption Commission, a government body that had recently been introduced. [47] Pezzullo himself would be stood down in September, over evidence that he had had discussions with Liberal Party powerbrokers and had advocated for and against MPs. [86]

Outcomes for PwC

As of 2023, the only legal consequences for PwC have been the TPB's requirement to provide training to relevant staff and provide compliance reports to the TPB.

In January 2023, Chartered Accountants Australia and New Zealand began an investigation as a result of the TPB's finding. In November, the investigation fined PwC its maximum fine of $50,000, with PwC covering the costs of the nearly year-long investigation. [87] The organisation had recently increased its maximum Disciplinary Tribunal fine to $250,000 for future cases. [88]

In November 2023 Australian bank Westpac announced it would cease its relationship with PwC, which had been Westpac's external auditor since 2002. [89]

Other consulting firms

The senate inquiry into consulting firms uncovered instances of similar conduct at other consulting firms.

Deloitte admitted that it had failed to disclose a similar conflict of interest when it advised the Australian National Audit Office (ANAO) on an IT procurement process, while simultaneously advising one of the bidding companies in the process. This violated ANAO policy.

A report from ANAO also revealed that Deloitte had failed to disclose a similar conflict of interest in its $1.5 million engagement with the Department of Home Affairs. Deloitte had advised the department on a tender process, while simultaneously advising one of the bidders on how to obtain the contract. [90] The department had become aware of this conflict, and terminated Deloitte's contract. However, nobody was disciplined over the incident. [91] The senate inquiry did not question Deloitte on its response to the breach.

It was also revealed that an ex-partner at Deloitte had shared confidential military documents with Synergy 360, a consultancy which was trying to win military consulting contracts. [92] At the time, Synergy 360 was the subject of yet another controversy, where associates were alleged to have offered MP Stuart Robert financial incentives to award them contracts at Services Australia. [93] [94]

The senate inquiry also saw Deloitte Australia's CEO sensationally admit that he did not deserve his multi-million dollar salary. [95]

KPMG was later accused of systematically overcharging the Department of Defence, its biggest client, by billing the department for work that had not been done. Over the last five years the firm had hired almost 100 staff who had previously worked for the department. [96]

Regulatory reforms

In August 2023, the federal government announced a crackdown on tax advisor misconduct in response to the scandal. Fines for tax advisors who tried to skirt tax laws increased from $7.8 million to $780 million. [97]

There was speculation that other Big Four companies could follow PwC's lead and separate their consulting and auditing arms, in order to resolve the conflict of interests between the two. [98]

Along with the other Big Four firms, PwC was among the companies urging the government to rethink tax transparency laws that are scheduled to come into effect in 2024. [99]

Rival firm KPMG proposed a review of professional services. It suggested the government could consult on a charter for public service consulting, and that ASIC could have an extended regulatory role in the sector. [100]

Related Research Articles

Arthur Andersen LLP was an American accounting firm based in Chicago that provided auditing, tax advising, consulting and other professional services to large corporations. By 2001, it had become one of the world's largest multinational corporations and was one of the "Big Five" accounting firms. The firm collapsed by mid-2002, as details of its questionable accounting practices for energy company Enron and telecommunications company WorldCom were revealed amid the two high-profile bankruptcies. The scandals were a factor in the enactment of the Sarbanes–Oxley Act of 2002.

The Big Four are the four largest professional services networks in the world: Deloitte, EY, KPMG, and PwC. They are the four largest global accounting networks as measured by revenue. The four are often grouped because they are comparable in size relative to the rest of the market, both in terms of revenue and workforce; they are considered equal in their ability to provide a wide scope of professional services to their clients; and, among those looking to start a career in professional services, particularly accounting, they are considered equally attractive networks to work in, because of the frequency with which these firms engage with Fortune 500 companies.

<span class="mw-page-title-main">Ernst & Young</span> Multinational professional services network

Ernst & Young Global Limited, trade name EY, is a British multinational professional services partnership based in London, England. EY is one of the largest professional services networks in the world. Along with Deloitte, KPMG and PwC, it is considered one of the Big Four accounting firms. It primarily provides assurance, tax, information technology services, consulting, and advisory services to its clients.

<span class="mw-page-title-main">KPMG</span> Multinational professional services and accounting company firm

KPMG International Limited is a British multinational professional services network, and one of the Big Four accounting organizations, along with Ernst & Young (EY), Deloitte, and PwC. The name "KPMG" stands for "Klynveld Peat Marwick Goerdeler". The initialism was chosen when KMG merged with Peat Marwick in 1987.

<span class="mw-page-title-main">PwC</span> Multinational professional services brand

PricewaterhouseCoopers International Limited is a British multinational professional services brand of firms, operating as partnerships under the PwC brand, based in London, England. It is the second-largest professional services network in the world and is considered one of the Big Four accounting firms, along with Deloitte, EY, and KPMG.

Deloitte Touche Tohmatsu Limited, commonly referred to as Deloitte, is a British multinational professional services network based in London, England. Deloitte is the largest professional services network by revenue and number of employees in the world and is considered one of the Big Four accounting firms, along with EY, KPMG, and PwC.

<span class="mw-page-title-main">McKinsey & Company</span> US-based worldwide management consulting firm

McKinsey & Company is an American multinational strategy and management consulting firm that offers professional services to corporations, governments, and other organizations. Founded in 1926 by James O. McKinsey, McKinsey is the oldest and largest of the "MBB" management consultancies (MBB). The firm mainly focuses on the finances and operations of their clients.

Gregory D. Brenneman is an American businessman. He serves as the chairman of CCMP Capital, an American private equity firm.

Strategy& is the strategy consulting business unit of PricewaterhouseCoopers (PwC), one of the Big Four professional service firms.

<span class="mw-page-title-main">Deborah O'Neill</span> Australian politician

Deborah Mary O'Neill is an Australian politician who has served as a Senator for New South Wales with the Australian Labor Party since 2013. Before entering politics O'Neill was a school teacher and university academic. In her Senate role, she has been described as taking "a fierce approach to accountability." In June 2023, O'Neill was appointed to chair the newly formed Parliamentary Joint Committee on Corporations and Financial Services. In this role, the committee has largely focused on failures of governance and public accountability amongst the large consulting firms Deloitte, EY, KPMG and PwC.

<span class="mw-page-title-main">MNP LLP</span> Professional services firm in Canada

MNP is one of the largest full-service chartered professional accountancy and business advisory firms in Canada. MNP's head office is in Calgary, Alberta, and has offices from Vancouver Island to St. John's. MNP's 127 offices span across 10 out of 13 of the provinces and territories of Canada, as it does not have locations in Yukon, Northwest Territories, and Nunavut. With 8,000+ employees, MNP is the third largest professional service firms in Canada by headcount.

<span class="mw-page-title-main">Bain & Company</span> Global management consulting firm

Bain & Company is an American management consulting company headquartered in Boston, Massachusetts. The firm provides advice to public, private, and non-profit organizations. One of the Big Three management consultancies, Bain & Company was founded in 1973 by former Group Vice President of Boston Consulting Group Bill Bain and his colleagues, including Patrick F. Graham. In the late 1970s and early 1980s, the firm grew rapidly. Bill Bain later spun off the alternative investment business into Bain Capital in 1984 and appointed Mitt Romney as its first CEO. Bain experienced several setbacks and financial troubles from 1987 to the early 1990s. Romney and Orit Gadiesh are credited with returning the firm to profitability and growth in their sequential roles as the firm's CEO and chairman respectively.

<span class="mw-page-title-main">LuxLeaks</span> Financial scandal revealed in November 2014

Luxembourg Leaks is the name of a financial scandal revealed in November 2014 by a journalistic investigation conducted by the International Consortium of Investigative Journalists. It is based on confidential information about Luxembourg's tax rulings set up by PricewaterhouseCoopers from 2002 to 2010 to the benefits of its clients. This investigation resulted in making available to the public tax rulings for over three hundred multinational companies based in Luxembourg.

<span class="mw-page-title-main">Cindy Hook</span> American businesswoman (born 1964)

Cindy Hook is an American-Australian business executive. She was the chief executive officer of Deloitte Asia Pacific from 2018 to 2022, and CEO for Deloitte Australia from 2015 to 2018, making her the first female CEO of an Australian big four professional services firm, and championed diversity and inclusion while in that role. She is the chief executive of the organising committee for the 2032 Summer Olympic and Paralympic Games.

<span class="mw-page-title-main">BDO Global</span> International network of professional service firms

BDO is an international network of public accounting, tax, consulting and business advisory firms that provide professional services under the name BDO. It is the fifth-largest accounting network in the world. Global fee income of the member firms in the network for the year ended 30 September 2023, including the members of their exclusive alliances, totaled US$ 14 billion. Each BDO member firm is an independent legal entity in its own country. The network, founded in 1963 as Binder Seidman International Group by firms from Canada, Germany, the Netherlands, the UK and the US, is coordinated by BDO Global Coordination B.V., with an office in Zaventem, Belgium. In 1973, the organisation adopted the name BDO, made up from the initials of the three founding firms: Binder (UK), Dijker (Netherlands) and Otte (Germany).

<span class="mw-page-title-main">Alison Rose (banker)</span> British banker

Dame Alison Marie Rose-Slade is a British banker. She was chief executive of NatWest Group from November 2019 to July 2023 and the first woman to lead a major lender in the UK. She was appointed a Dame Commander of the Order of the British Empire in the 2023 Birthday Honours.

The Mauritius Leaks were the report of a datajournalistic investigation by the International Consortium of Investigative Journalists (ICIJ) in 2019 about how the former British colony Mauritius has transformed itself into a thriving financial centre and tax haven.

Luke SayersAM is an Australian businessman. He is the former CEO of scandal-ridden firm PwC Australia. Since 2012 Sayers has served on the board of the Carlton Football Club and became its President on 17 August 2021.

In September 2022, Australian telecommunications company Optus suffered a data breach that affected up to 10 million current and former customers comprising a third of Australia's population. Information was illegally obtained, including names, dates of birth, home addresses, telephone numbers, email contacts, and numbers of passports and driving licences. Conflicting claims about how the breach happened were made; Optus presented it as a complicated attack on its systems while an Optus insider and the Australian Government said a human error caused a vulnerability in the company's API. A ransom notice asking for A$1,500,000 to stop the data from being sold online was issued. After a few hours, the data thieves deleted the ransom notice and apologised for their actions.

Tom Seymour is the former CEO of PwC in Australia. He also served as PwC's Asia Pacific network and a part of the firm's Global Tax and legal leadership team.

References

  1. ↑ "PWC tipped off Google on timing of Australian tax law".
  2. ↑ McKenzie-Murray, Martin (2023-05-20). "Consequences of the PwC tax leaks scandal". The Saturday Paper . Retrieved 2023-07-30.
  3. ↑ Commonwealth Parliament. "Chapter 1 - PwC: A calculated breach of trust". www.aph.gov.au. Retrieved 2023-07-29.
  4. ↑ "167,596 was the 'magic' number that shaped the public service for years — until this week". ABC News . 2021-05-12. Retrieved 2023-07-28.
  5. 1 2 Belot, Henry (2023-07-04). "'Corrosive impact': calls to ban political donations from Australia's big four consultancies after PwC scandal". The Guardian . ISSN   0261-3077 . Retrieved 2023-07-27.
  6. ↑ Belot, Henry (2023-07-17). "Australian government spending on big four consultancy firms up 1,270% in a decade, analysis shows". The Guardian. ISSN   0261-3077 . Retrieved 2023-07-27.
  7. ↑ Lowrey, Tom (2023-05-06). "Public service audit reveals $20.8 billion outsourcing bill for last year of Morrison government". ABC News. Retrieved 2023-07-27.
  8. ↑ Mannheim, Markus (2020-09-09). "'Nepotism and corruption': The growing gig economy inside the Federal Government". ABC News. Retrieved 2023-07-27.
  9. ↑ Ziffer, Daniel (2023-05-22). "PwC breached the Australian government's trust, now it is facing the consequences". ABC News. Retrieved 2023-08-07.
  10. ↑ Fildes, Nic (2023-06-15). "Australia rolls back consultants' influence after PwC tax leaks scandal". Financial Times . Retrieved 2023-11-23.
  11. ↑ "Former PwC chief Luke Sayers 'does not recall' being told to review firm emails". Australian Financial Review . 2023-08-08. Retrieved 2024-02-10.
  12. ↑ "PwC tax leaks scandal: A timeline". Australian Financial Review. 2023-06-22. Retrieved 2024-02-10.
  13. ↑ Belot, Henry (2023-05-08). "PwC Australia chief executive Tom Seymour resigns in wake of tax policy leak". The Guardian. ISSN   0261-3077 . Retrieved 2024-02-10.
  14. ↑ Treasury. "Tax Laws Amendment (Combating Multinational Tax Avoidance) Act 2015". www.legislation.gov.au. Retrieved 2023-07-28.
  15. 1 2 3 4 5 6 Ainsworth, Kate (2023-06-04). "At least 53 people knew about the PwC tax leak — so why don't we know who they are?". ABC News. Retrieved 2023-07-27.
  16. ↑ "PwC partner leaked government tax plans to clients". Australian Financial Review. 2023-01-22. Retrieved 2023-08-23.
  17. ↑ PwC, answers to written questions on notice from Senator Barbara Pocock, 5 May 2023 (received 2 June 2023), page 2 Available at https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Finance_and_Public_Administration/Consultingservices/Additional_Documents
  18. ↑ "PwC Australia allegedly provided confidential tax law information to Google". The Guardian. Reuters. 2023-07-06. ISSN   0261-3077 . Retrieved 2023-08-31.
  19. ↑ "'For your eyes only': How PwC leaks helped global clients dodge tax". Australian Financial Review. 2023-05-02. Retrieved 2023-08-07.
  20. ↑ "US tech giants restructured to sidestep Australian tax law, following PwC advice - ICIJ". 2023-07-11. Retrieved 2023-07-28.
  21. ↑ Mr Hirschhorn (ATO), 30 May 2023, Senate Economics Legislation Committee (Budget Estimates 2023-24), Official Committee Hansard, page 98. Available at https://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id%3A%22committees%2Festimate%2F26986%2F0000%22
  22. ↑ Jackson, Lewis (2023-05-30). "Australia foiled multinationals' attempts to subvert new tax laws after PwC Australia leak". Reuters . Retrieved 2023-07-27.
  23. ↑ Belot, Henry (2023-08-11). "PwC lost track of number of client privilege claims allegedly used to stymie ATO investigations". The Guardian. ISSN   0261-3077 . Retrieved 2023-08-12.
  24. ↑ Belot, Henry (2023-08-08). "PwC scandal: Australian Tax Office tried to get federal police to investigate in 2018". The Guardian. ISSN   0261-3077 . Retrieved 2023-08-12.
  25. ↑ "Former PwC chief Luke Sayers 'does not recall' being told to review firm emails". Australian Financial Review. 2023-08-08. Retrieved 2023-08-14.
  26. ↑ "Commissioner of Taxation v PricewaterhouseCoopers [2022] FCA 278". Level Twenty Seven Chambers. 25 March 2022. Retrieved 1 August 2023.
  27. ↑ "Commissioner of Taxation v PricewaterhouseCoopers [2022] FCA 278". FEDERAL COURT OF AUSTRALIA. Retrieved 1 August 2023.
  28. ↑ "Legal professional privilege: lessons learned for multi-jurisdictional or multi-disciplinary matters". Corrs Chambers Westgarth . Retrieved 1 August 2023.
  29. ↑ "Tax Office warned PwC chief Sayers to read the emails". Australian Financial Review. 2023-08-07. Retrieved 2023-08-12.
  30. ↑ "Tax Office halved $1.4m PwC fine for false privilege claims". Australian Financial Review. 2023-10-24. Retrieved 2023-10-26.
  31. ↑ "Tax Office mixed up documents in PwC penalty case". Australian Financial Review. 2023-10-26. Retrieved 2023-10-26.
  32. ↑ PricewaterhouseCoopers. "PwC Australia's partners elect Tom Seymour as CEO". PwC. Retrieved 2023-08-14.
  33. ↑ Nilsson, Anton (2023-08-09). "PwC board aware of CEO's tax scandal woes before appointment". Crikey . Retrieved 2023-08-14.
  34. ↑ ATO answers dated 4 August 2023 to spoken questions on notice from Senator O’Neill on 30 May 2023 (question number BET044) at the Senate Economics Legislation Committee (Treasury Portfolio). Available at: https://www.aph.gov.au/api/qon/downloadestimatesquestions/EstimatesQuestion-CommitteeId3-EstimatesRoundId21-PortfolioId17-QuestionNumber44
  35. ↑ Bashan, Yoni (30 May 2023). "Too close for comfort on tax advisory board". The Australian. Retrieved 4 September 2023.
  36. ↑ TPB. "PriceWaterhouseCoopers" . Retrieved 23 November 2023.
  37. ↑ "PwC partner leaked government tax plans to clients". Australian Financial Review. 2023-01-22. Retrieved 2023-07-28.
  38. ↑ "AFR sweeps the Kennedy Awards for PwC tax leaks". Australian Financial Review. 2023-08-18. Retrieved 2023-08-23.
  39. ↑ Belot, Henry; Canales, Sarah Basford (2023-10-20). "PwC partner at centre of tax advice scandal banned by Asic for eight years". The Guardian. ISSN   0261-3077 . Retrieved 2023-10-26.
  40. ↑ Lowrey, Tom (2023-01-25). "Treasurer 'absolutely ropeable' over consultant leaking confidential government briefings". ABC News. Retrieved 2023-07-28.
  41. ↑ "Those 'directly involved' in tax leak have left firm: PwC CEO". Australian Financial Review. 2023-05-03. Retrieved 2023-07-28.
  42. ↑ "PwC leaks scandal widens". Australian Financial Review. 2023-02-15. Retrieved 2023-08-23.
  43. ↑ Commonwealth Parliament. "Inquiry into management and assurance of integrity by consulting services (Consulting services)". www.aph.gov.au. Retrieved 2023-08-08.
  44. ↑ Belot, Henry (2023-05-12). "'Disgraceful breach of trust': how PwC, one of the world's biggest accountancy firms, became mired in a tax scandal". The Observer. ISSN   0029-7712 . Retrieved 2023-07-27.
  45. ↑ Yeates, Clancy (2023-05-08). "PwC chief steps down as tax leak scandal shreds company reputation". Sydney Morning Herald . Retrieved 2023-07-27.
  46. ↑ Butler, Josh (24 May 2023). "PwC tax scandal referred to Australian federal police for criminal investigation". The Guardian. Retrieved 25 May 2023.
  47. 1 2 Kruger, Colin (2023-05-25). "AFP commences criminal investigation into PwC tax scandal". The Sydney Morning Herald. Retrieved 2023-07-28.
  48. ↑ "AFP boss rejects conflict of interest claims in wake of PwC tax scandal". News.com.au . Retrieved 22 June 2023.
  49. ↑ "Former police chiefs' texts reveal new PwC tax mystery". The Mandarin. 22 June 2023. Retrieved 22 June 2023.
  50. ↑ "Senate Hansard". Parliament of Australia. (page 85). Retrieved 22 June 2023.
  51. ↑ "PricewaterhouseCoopers—Order for production of documents". Parliament of Australia. Retrieved 8 July 2023.
  52. ↑ "Greens raise conflict of interest concerns over AFP dealings with PwC". The Sydney Morning Herald. 22 June 2023. Retrieved 22 June 2023.
  53. ↑ "APS Values and Code of Conduct in practice - Section 5: Conflict of Interest". Australian Public Service Commission. Retrieved 22 June 2023.
  54. ↑ "AFP Chief Accused of Not Disclosing Conflict of Interest in PwC Meetings with 'Friend'". Global Village Space. Retrieved 22 June 2023.
  55. ↑ Evans, Jake (2023-08-03). "'Terrible leak': Texts between AFP commissioner and PwC partner raise questions over conflict of interest on contract". ABC News. Retrieved 2023-08-08.
  56. ↑ Canales, Sarah Basford (2023-08-04). "AFP commissioner says relationship with PwC partner strictly professional after texts revealed". The Guardian. ISSN   0261-3077 . Retrieved 2023-08-08.
  57. ↑ PwC Australia’s head office raided by Federal Police Mumbrella 6 November 2024
  58. ↑ AFP raids PwC Sydney office PM 6 November 2024
  59. ↑ "PWC partner leaked government tax plans to clients". 22 January 2023.
  60. ↑ PricewaterhouseCoopers. "Open letter from PwC Australia acting chief executive Kristin Stubbins". PwC. Retrieved 2023-09-04.
  61. ↑ PricewaterhouseCoopers. "PwC Australia exits eight partners for professional or governance breaches". PwC. Retrieved 2023-09-04.
  62. ↑ "PwC appoints new CEO and announces it will sell off government business for $1". ABC News. 2023-06-25. Retrieved 2023-07-27.
  63. ↑ "Scyne targets 1500 more PwC staff after nabbing 117 partners". Australian Financial Review. 2023-08-23. Retrieved 2023-08-23.
  64. ↑ "The former boss of PwC united all sides of politics in an hour by embodying Alan Bond's infamous phrase". ABC News. 2023-10-15. Retrieved 2023-10-26.
  65. ↑ "Profit-first 'shadow' culture blamed for PWC scandal". 27 September 2023.
  66. 1 2 "PWC Australia's culture attacked in tax leak scandal report".
  67. ↑ "Scope of Switkowski's PwC review revealed". Australian Financial Review. 2023-07-26. Retrieved 2023-07-28.
  68. ↑ "Statement on Linklaters' PWC Network review".
  69. ↑ Belot, Henry (2023-05-17). "PwC internal review of tax leak 'continues the cover-up', Australian senator says". The Guardian. ISSN   0261-3077 . Retrieved 2023-05-17.
  70. ↑ Kruger, Nick Bonyhady, Colin (2023-05-11). "PwC scandal will be referred to national anti-corruption watchdog". Sydney Morning Herald. Retrieved 2023-05-17.{{cite web}}: CS1 maint: multiple names: authors list (link)
  71. ↑ Barrett, Jonathan (2023-07-03). "PwC Australia's former CEO among eight partners removed following tax leak scandal". The Guardian. ISSN   0261-3077 . Retrieved 2023-07-27.
  72. ↑ Clun, Rachel (2023-07-07). "PwC repaying almost $1 million in robo-debt consulting fees". The Age. Retrieved 2023-07-28.
  73. ↑ Redundant PwC staff shocked and blindsided Australian Financial Review 8 November 2023
  74. ↑ Kruger, Colin (2024-03-13). "PwC slashes 329 more staff, up to 37 partners face early retirement". Sydney Morning Herald . Retrieved 2024-03-13.
  75. ↑ PwC Australia sacks 366 staff in major restructure News.com.au 14 March 2024
  76. ↑ Clun, Rachel (2024-06-12). "PwC facing 10 tax scandal investigations". The Sydney Morning Herald. Retrieved 2024-08-18.
  77. ↑ Ferguson, Adele (2023-07-16). "How four companies infiltrated governments and took home $10 billion". ABC News. Retrieved 2023-07-27.
  78. ↑ NSW Public Accountability and Works Committee. "NSW Government's use and management of consulting services". www.parliament.nsw.gov.au. Retrieved 2023-08-08.
  79. ↑ Commonwealth Parliament, Canberra. "Ethics and Professional Accountability: Structural Challenges in the Audit, Assurance and Consultancy Industry". www.aph.gov.au. Retrieved 2023-08-08.
  80. ↑ Commonwealth Parliament, Canberra. "Treasury Laws Amendment (Making Multinationals Pay Their Fair Share-Integrity and Transparency) Bill 2023 [Provisions]". www.aph.gov.au. Retrieved 2023-08-08.
  81. ↑ "PwC and Labor to mend bridges at budget fundraiser". Australian Financial Review. 2023-03-22. Retrieved 2023-08-23.
  82. ↑ Towell, Noel (2023-05-08). "Embattled PwC the hottest ticket in Canberra on budget night". The Age. Retrieved 2023-08-23.
  83. ↑ Evans, Jake (2023-07-27). "PwC reveals private settlement over undisclosed matter with Tax Office, as it contended with unfolding tax leak saga". ABC News. Retrieved 2023-07-27.
  84. ↑ Belot, Henry; Davey, Melissa (2023-07-26). "PwC promoted firm it part-owned in 'independent' mental health report for Australian government". The Guardian. ISSN   0261-3077 . Retrieved 2023-07-27.
  85. ↑ Chan, Gabrielle (2023-06-06). "PwC Australia scandal: $27m river modelling contract referred to audit body". The Guardian. ISSN   0261-3077 . Retrieved 2023-07-30.
  86. ↑ "Infamously compared to a cockroach, former political powerbroker Mike Pezzullo is suddenly looking mortal". ABC News. 2023-09-26. Retrieved 2023-10-08.
  87. ↑ "Chartered Accountants fines PwC $50,000 over tax leaks scandal". Australian Financial Review. 2023-11-27. Retrieved 2023-11-28.
  88. ↑ "PricewaterhouseCoopers Australia censured and fined by CA ANZ Disciplinary Tribunal". Chartered Accountants ANZ. 28 November 2023. Retrieved 28 November 2023.
  89. ↑ "Westpac to dump PwC as its auditor". Australian Financial Review. 2023-11-07. Retrieved 2023-11-08.
  90. ↑ Belot, Henry (2023-07-14). "Deloitte admits misuse of government information as scandal engulfing PwC widens". The Guardian. ISSN   0261-3077 . Retrieved 2023-07-27.
  91. ↑ Middleton, Karen (2023-07-22). "Deloitte breached undertaking on Home Affairs advice". The Saturday Paper. Retrieved 2023-07-28.
  92. ↑ Cockburn, Paige (2023-07-20). "Senator calls for Deloitte to face fresh grilling over claims ex-partner David Milo shared military documents". ABC News. Retrieved 2023-07-27.
  93. ↑ Karp, Paul; Shepherd, Tory (2023-06-28). "Lobbying firm proposed structure to allow Stuart Robert to profit from winning government contracts, parliamentary committee told". The Guardian. ISSN   0261-3077 . Retrieved 2023-07-29.
  94. ↑ Shepherd, Tory (2023-07-24). "Businessman linked to Stuart Robert not to face inquiry because he has 'severed all ties' with Australia". The Guardian. ISSN   0261-3077 . Retrieved 2023-07-29.
  95. ↑ Bhaimiya, Sawdah. "Deloitte Australia CEO admits he isn't worth his $2.3 million pay package in a public hearing over salaries and misconduct at consultancy firms". www.msn.com. Retrieved 2023-07-28.
  96. ↑ Grigg, Angus; Longbottom; Connaughton (2023-08-06). "It's raking in billions of dollars in public money. Now whistleblowers are accusing this consulting firm of ripping off the government". ABC News. Retrieved 2023-08-08.
  97. ↑ Bovill, Monte (2023-08-06). "PwC tax scandal prompts government to crack down on tax adviser misconduct". ABC News. Retrieved 2023-08-08.
  98. ↑ "Why the big four could decide to sever their tax arms". Australian Financial Review. 2023-08-14. Retrieved 2023-08-14.
  99. ↑ Karp, Paul (2023-08-26). "PwC urged Labor to delay multinational tax transparency laws, Senate submissions reveal". The Guardian. ISSN   0261-3077 . Retrieved 2023-08-27.
  100. ↑ "'Sleeping at the wheel': Treasury response to PwC scandal criticised as KPMG proposes reforms". ABC News. 2023-06-07. Retrieved 2023-10-26.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.