PwC Australia CEO Kevin Burrowes paid to advise global arm on local tax scandals; new leadership revealed

PwC Australia CEO Kevin Burrowes is paid $1.2m by the international arm of the firm to advise the global consulting giant on its response to the tax scandal hanging over the local business.

PwC CEO Kevin Burrowes. Picture: Liam Mendes

PwC Australia chief executive Kevin Burrowes is paid $1.2m by the international arm of the firm to advise the global audit and consulting giant on its response to the tax scandal hanging over the local business.

In a response to a question on notice from the parliament, PwC revealed Mr Burrowes, who took on the top job in June last year, was being paid extra “to ensure that any program of remediation work … operated within the compliance expectations of the PwC Network and was appropriately completed”.

PwC also told the Parliamentary Joint Committee on Corporations and Financial Services that Mr Burrowes was counselling the firm’s global leadership teams “regarding matters arising in other territories around the PwC Network where the experience of PwC Australia may be instructive”.

The British consultant was also revealed to be receiving the funds after “collaborating with the PwC Network’s global functions and providing substantive inputs on enhancements to the standards and regulations of the PwC Network concerning governance, leadership and related matters”.

The revelations come as the joint parliamentary committee seeks to focus on the connections between PwC’s local firm and its international operations, after at least six partners were found to have received confidential information from the Australian operation.

PwC’s former head of international tax, Peter Collins, was banned by the Tax Practitioners Board after he was found to have misused confidential Australian government tax briefings, sharing them within the firm to allow it to frontrun new laws.

In an earlier appearance before a senate committee, Mr Burrowes said he had not seen a report into the international links, prepared by law firm Linklaters, noting “it has not been shared with anyone in PwC Australia” and that he “cannot tell you the names or the countries where those partners reside” or if they were still with the firm.

John Green has been named as independent non-executive chair of PwC Australia’s Governance Board.

Lisa Chung will join PwC's Governance Board on September 1.

In its response to the inquiry, PwC said Mr Burrowes “does not have access to the legal advice provided by Linklaters” but the CEO had made two written requests for access in October 2023 and March 2024 to no avail.

Mr Burrowes’ links to the international firm were only revealed after he disclosed to the committee on June 28 that he was paid $4m a year, more than the $2.8m he told a senate committee in February. This came at the same time Mr Burrowes revealed to partners in the firm he was enjoying a healthier pay packet.

When The Australian raised rumours that Mr Burrowes was being paid more than he had disclosed, PwC’s head of media relations Patrick Lane issued “a friendly caution on proceeding with that one”.

Mr Burrowes is expected to face questions over his pay and links to the international arm of the firm when he appears before the joint parliamentary committee on Friday.

He will be joined by chief risk and ethics leader Jan McCahey, general counsel Kylie Gray, the firm’s tax and legal leader Chris Morris and PwC global board member Paddy Carney.

PwC’s former general counsel Meredith Beattie will also appear, as will former CEOs Luke Sayers and Tom Seymour.

Mr Seymour left the firm after regulators revealed the misuse of confidential information at PwC.

The two men are set to appear in the wake of evidence from the Australian Taxation Office that high-ranking tax officials were concerned PwC had sought to mislead the Foreign Investment Review Board during their tenure. As revealed in The Australian, the ATO uncovered thousands of emails, after a search of PwC systems, that appeared to indicate the firm had been coaching clients on how to mislead FIRB.

Retiring NSW Chief Justice Tom Bathurst will assist a review of PwC Australia. Picture: Toby Zerna

PwC told the committee it was “deeply concerned” with the ATO’s suggestion, noting it had investigated the matter and conveyed its findings to the tax office.

The firm said the FIRB issues were raised with Mr Sayers on August 2019, with Mr Seymour sharing the findings with the ATO in October the same year.

“Treasury is currently examining its records and working with the ATO to identify whether any FIRB applications where PwC was involved were based on false or misleading information,” PwC said.

“PwC has written to Treasury on July 11, 2024, highlighting its willingness to co-operate fully with any review Treasury may undertake.”

PwC unveiled a new chair and director at the firm on Thursday, also announcing plans for law firm Webb Henderson and a former judge to run a review of the audit and consulting giant’s “commitments to change”.

In a note to staff on Thursday PwC said it would appoint two new independent directors to the firm’s governing board, with current chair Justin Carroll set to step down in August.

John Green, former Macquarie investment banker and executive director, will take on the chair role. Mr Green joins the firm as the first of three independent directors slated for PwC’s governing board.

PwC said Mr Green would “strengthen the independence and oversight powers of PwC Australia’s Governance Board”.

Mr Carroll said Mr Green was an “exceptional addition” to the board. “He will be able to draw from his decades of experience to bring an outside-in perspective, hold management to account and deliver a new level of oversight,” he said.

PwC has also announced Lisa Chung will join the governance board on September 1 as an independent director.

The board shake-up comes after former Telstra boss Ziggy Switkowski handed down his review into PwC’s governance, culture, and accountability in May last year. Mr Switkowski will also appear before the parliamentary committee on Friday.

His review came after PwC was revealed to have misused confidential government tax briefings to construct strategies for clients ahead of the 2016 introduction of new tax laws.

PwC said it was “well progressed” on appointing a third independent director.

The firm also told staff it would bring in lawyers from Webb Henderson, supported by former legal luminary and former NSW Supreme Court Justice Tom Bathurst, to “verify progress made on its Action Plan”.

PwC released its action plan in September, noting 35 of the 47 matters raised had been addressed and were prepared for independent verification.

“The remaining 12 actions have staggered timelines and are progressing,” PwC said. “(Webb Henderson and Mr Bathurst) will begin reviewing PwC Australia’s progress immediately.”

Originally published as PwC Australia CEO Kevin Burrowes paid to advise global arm on local tax scandals; new leadership revealed