PwC Australia HQ Raided by Police Amid Explosive Tax Leak Scandal

November 4, 2024
PwC Australia HQ Raided by Police Amid Explosive Tax Leak Scandal
  • The 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


AFP raids PwC offices over tax scandal

The Sydney Morning Herald • Nov 4, 2024

AFP raids PwC offices over tax scandal

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