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Lendlease whistleblower Tony Watson to fight on alone as legal struggle takes financial toll

Lendlease whistleblower Tony Watson needs a lawyer, after the courts knocked back his application for assistance, as he faces down with a high-powered opposition.

Tony Watson sold his family home on Sydney’s Georges River to fund his legal fight. Picture: Britta Campion / The Australian
Tony Watson sold his family home on Sydney’s Georges River to fund his legal fight. Picture: Britta Campion / The Australian
The Australian Business Network

Lendlease whistleblower Tony Watson needs a lawyer, saying years in the courts battling the construction giant and disgraced consulting giant PwC Australia have drained his financial reserves.

Mr Watson, who previously worked at tax advisory firm Greenwoods & Herbert Smith Freehills, has been dragged through the courts since 2022, alleging he was unceremoniously dumped from his job after trying to stop an alleged $300m “tax dodge”.

But two weeks ago, Mr Watson’s lawyers warned they would no longer act for him, after he exhausted his funds over 21 appearances before the Federal and High courts.

In response, Mr Watson appealed to Justice Elizabeth Raper for pro bono legal assistance, seeking the court’s help to find a barrister to fight a nine-day trial set down for June.

But Justice Raper declined the request, deciding it “wasn’t appropriate”.

The Federal Court allows its judges to determine if parties can be referred for legal assistance from the bar, noting they do so “when it is in the interests of justice”.

Mr Watson said that without representation, his fight against Lendlease and PwC, which bought Greenwoods & Freehills in 2022, would prove all the harder.

“I would very much like a barrister to help with my presentation of the case to the court, and in particular the cross-examination of the witnesses,” he said.

“It’s the lot of whistleblowers to both make the decision to call out the wrongdoing and then by themselves try to fight for compensation when they’re victimised, and this process shows how hard that is.”

The former Greenwoods & Freehills partner said he had exhausted all his options, selling the family home on Sydney’s Georges River to fund his legal fight.

Against him, Mr Watson faces Omnia Chambers’ Michael Hodge KC, who appears for $9000 a day representing PwC, instructed by Dentons.

Lendlease hired Selborne Wentworth Chambers’ Elizabeth Collins SC, instructed by King & Wood Mallesons.

Mr Watson faces the considerable task of tackling the two firms alone, with all sides now negotiating document discovery ahead of the June trial.

His struggle comes years after being turfed from Greenwoods & Freehills, with Mr Watson only filing his case against the firm after reporting Lendlease to the Australian Taxation Office over the alleged tax breaches in 2018.

The ATO has already found Lendlease owes more than $95m in unpaid taxes tied to the sale of stakes in its retirement living business, something Mr Watson claims he attempted to repeatedly warn the company about.

These tax strategies were devised by PwC, which continues to advise Lendlease.

PwC faced public ire in the tax leaks scandal which was exposed when its former head of international tax Peter Collins was banned as a tax practitioner in October 2022 after being found to have breached his confidentiality deeds.

Lendlease continues to deny it failed to pay the right taxes and is appealing the ATO’s amended assessment.

But the ATO continues to investigate its later filings, with industry sources saying Lendlease’s final bill may run north of $300m.

The Federal Court failed to respond to a request for comment.

Read related topics:Lendlease
David Ross
David RossJournalist

David Ross is a Sydney-based journalist at The Australian. He previously worked at the European Parliament and as a freelance journalist, writing for many publications including Myanmar Business Today where he was an Australian correspondent. He has a Masters in Journalism from The University of Melbourne.

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Original URL: https://www.theaustralian.com.au/business/lendlease-whistleblower-tony-watson-to-fight-on-alone-as-legal-struggle-takes-financial-toll/news-story/a229a6daacb5b9bf8c83b5a07f144389