AFP raids PwC offices over tax scandal

Embattled consulting firm PwC has confirmed that the federal police have raided its head office in Sydney in relation to a criminal probe into the sharing of sensitive government tax plans by a former PwC partner.

“This step is part of the existing investigation that began in 2023 regarding the historical tax matter, and is an investigation into individuals who have left the firm,” a PwC spokeswoman said.

The Australian Federal Police have raided PwC’s head office over the tax leaks scandal.Credit: Eamon Gallagher

“We have been working with the Australian Federal Police to facilitate their attendance and will continue to fully co-operate with their investigation, as we have from the beginning. Out of respect for the AFP’s work, we won’t be commenting further.”

A spokesperson for the AFP said it was aware of media reports and that it would provide an update at an appropriate time.

The AFP probe is one of many investigations over the firm’s tax leak scandal, which includes inquiries by the Tax Practitioners Board. The scandal came to light after a Senate committee released a cache of emails that revealed dozens of PwC personnel were involved in a brazen attempt to use confidential government tax plans to create fresh business from notorious corporate tax avoiders such as Google and Facebook.

The AFP commenced a criminal investigation into PwC and its former partner Peter Collins in May last year over the scandal.

Australia was shocked to hear about Peter Collins of PwC and the international scheme of tax avoidance planned by one of our country’s most visible companies.Credit:

At that time, Treasury secretary Dr Steven Kennedy said Collins had “improperly used confidential Commonwealth information”. “In light of these recent revelations and the seriousness of this misconduct, the Treasury has referred the matter to the Australian Federal Police to consider commencement of a criminal investigation,” he said.

The revelations have led to more than 700 staff and dozens of partners leaving PwC Australia, including chief executive Tom Seymour; a splintering of its local operations including the spin-off of its government relations arm into a new firm, Scyne; and the Department of Finance banning any personnel from the firm working on government contracts while investigations are ongoing.

Last week, documents uncovered by a joint parliamentary committee revealed how PwC International took control of its scandal-ridden local operation in May last year, having given PwC Australia just four days to accept its control or risk expulsion from the global consulting group.

The documents released by the consulting inquiry on Friday revealed scathing letters to PwC Australia’s leaders from the global group, citing actions causing a “breakdown of trust and confidence in the firm, and damage to PwC’s reputation”.

The letter shows that PwC demanded approval for everything, including PwC Australia’s responses to the political inquiries and regulators.

“These documents demonstrate, in crystal-clear detail, the lengths to which PwC International went in its attempt to inhibit transparency and accountability in the wake of the tax leaks scandal, and the revelation of Mr Peter John Collins’ misuse of confidential Australian government information,” said committee chair Senator Deborah O’Neill.

“The documents show how PwC International threatened its Australian arm with expulsion from the global franchise if it dared to freely co-operate with the legitimate inquiries of this parliament. This is a blatant and deeply inappropriate form of intimidation.”

Senator Barbara Pocock said the documents reveal the low level of trust in the Australian operation by its own global leadership, but she was critical of both parties.

“PwC operatives, whether local or global, are sadly all too consistent in a pattern of withholding critical information about the scandal within their walls. They resist requests for information, push for confidentiality, and manipulate legal professional privilege where they can. Australians deserve better.”

A final report on the consulting inquiry is expected this week.

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