PwC Australia HQ Raided by Police Amid Explosive Tax Leak Scandal
November 4, 2024The AFP's investigation, known as Operation Alesia, is a priority for the agency and has included international inquiries.
This investigation, which began in May 2023, is focused on individuals who have left the firm, with PwC cooperating fully with the AFP.
The scandal involves allegations that PwC personnel used confidential government tax plans to attract business from major corporate tax avoiders like Google and Facebook.
As a consequence of the scandal, over 700 staff and several partners, including former CEO Tom Seymour, have departed from PwC Australia.
On November 4, 2024, the Australian Federal Police (AFP) raided the Sydney headquarters of PwC Australia as part of an ongoing investigation into a former partner accused of leaking sensitive government tax plans.
The AFP's search is linked to a tax leaks scandal that has raised serious concerns about internal governance within PwC.
Internal emails have revealed extensive unauthorized disclosures of confidential information, including sensitive government secrets marked 'for your eyes only'.
In response to the fallout, PwC Australia divested its entire government advisory service, employing 1,750 staff, to private equity firm Allegro Funds for just $1.
A parliamentary inquiry earlier in 2024 found that PwC Australia had shared the leaked data internally and attempted to cover up its use.
PwC International has expressed anger over the damage to its brand caused by the Australian arm, threatening expulsion from the network unless it relinquishes control over its scandal response.
PwC Australia CEO Kevin Burrowes informed staff that police would be present at the Sydney office for several days and emphasized the firm's cooperation with the AFP.
A final report on the consulting inquiry is anticipated to be released this week, shedding further light on the scandal.
Summary based on 3 sources
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Sources
The Guardian • Nov 4, 2024
Federal police begin search of PwC headquarters amidst tax leaks scandalThe Sydney Morning Herald • Nov 4, 2024
AFP raids PwC offices over tax scandalInvesting.com • Nov 4, 2024
Australian police search Sydney PwC office over tax leak probe