The Tax Office’s secret settlement with PwC in March shaved $785,400 off penalties and blocked any further action against the big four firm and its clients for making false claims of legal professional privilege over an estimated 100,000 documents.

Last November the ATO imposed $1.428 million in penalties on PwC over 170 false LPP claims, but the confidential settlement reduced this to just $642,600. The agreement also prevents the ATO from taking action against five multinational clients who supported the false legal professional privilege claims.