Finance clears PwC to tender for government work despite open police investigation into tax leaks scandal

PwC Australia will be able to return to tendering for Australian government work after being cleared by the Department of Finance despite an incomplete police investigation. The ministry believes no current staff were connected to the tax leaks scandal.

PwC CEO Kevin Burrowes. Picture: Liam Mendes / The Australian

PwC Australia is back in the Federal government’s favour after the Department of Finance cleared the firm over its role in stealing confidential tax information and passing it on to clients.

A Finance report circulating late on Friday said its ban on PwC working with Federal departments expired 11 days ago, after being imposed in April last year. The ban was aimed at stopping new contractual engagements with the public service, and extended to July 14, 2025, at which point it expired.

This opens the door to PwC competing for new work as a contractor from November 9, when a self-imposed restriction period ends.

The firm said it would not vie for work with the general government sector until November 9, 2028.

Finance agreed to return PwC to the fold on the assurance of the audit and consulting giant that all wrongdoers had been punished, despite no international accomplices being pushed out.

PwC was deemed to have made amends for deliberately misusing confidential tax information to craft tax strategies for clients, according to the report seen by The Australian.

A spokesperson for Public Service and Finance Minister Katy Gallagher said “reports that the review has been finalised are not correct”.

The document notes in making its assessment that it had not considered any of the other matters surfaced in the Tax Practitioners Board or Senate inquiries, except on matters relating to PwC’s “ethical soundness”.

Other government departments that continued to deal with PwC after the firm was banned in April 2024 reported “no issues with PwC Australia’s conduct while under contract”.

PwC was rocked by scandal after parliament published a trove of emails that revealed the extensive sharing of confidential tax intelligence in March 2023.

PwC’s former head of international tax Peter Collins shared briefings in the lead up to new laws aimed at cracking down on multinational companies shifting profits offshore and paying minimal tax in Australia.

PwC Australia CEO Kevin Burrowes. Picture: John Feder/The Australian

Finance also revealed it had accepted PwC’s assurances the firm had changed its culture supported by two reviews commissioned by the firm guiding its rehabilitation.

And the department noted although an Australian Federal Police investigation into the PwC scandal was underway, it was only aware of poor conduct that applied “to former partners of PwC Australia, not current partners or employees”.

PwC’s US international tax partner Matthew Chen was allegedly linked to the misconduct, The Australian previously revealed, after being named in court documents which claim he was handed confidential information by Mr Collins.

Mr Chen remains with the firm, as do partners in PwC’s Ireland, US, and British businesses which sources close to the scandal say were all closely involved in the misuse of confidential information.

The AFP raided PwC’s Sydney office last year and searched properties connected to Mr Collins.

PwC International partner, Matthew Chen

Finance said its assessment did not reflect the fact PwC International withheld the firm’s internal investigation from the two Senate committees reviewing the scandal.

“The failure of PwC International Limited to provide documentation to relevant Senate committees, whilst grave, does not impact Finance’s assessment of PwC Australia today, noting that PwC Australia is a separate legal entity within the PwC (International) network,” Finance said.

The Greens had called for PwC to be banned from working for the government until it disclosed the firm’s internal findings.

PwC International currently controls the local arm, and put in place its boss Kevin Burrowes.

He also incorrectly told a parliamentary committee he was paid $2.8m, when his actual pay packet was nearly $4m after a top-up from PwC international.

The firm’s former head of media relations issued a “a friendly caution on proceeding with” reporting that information when questions about its veracity were first raised.

“Broadly, Finance notes that PwC Australia has established processes and procedures, including clear role responsibilities and reporting lines to provide strong governance,” the report notes.

“Finance has observed the tone at the top has improved markedly, with a significantly stronger focus on an accountability culture.”

At its peak, PwC was doing nearly $506.7m of work for the federal government.

But after selling its government consulting arm to Allegro Funds for $14.3m, despite publically promoting the transaction as having a $1 purchase price, PwC shed other contracts too.

The minister’s office said the report was shared with Labor Senator Deborah O’Neill, Greens senator Barbara Pocock and Liberal senator Richard Colbeck, under embargo.

“Following a briefing today, Minister Gallagher asked the Department of Finance to seek feedback from senators involved in the Senate Inquiry into the PwC matter, before the department review is finalised and published.

“This period of consultation is ongoing and the report will be finalised after any feedback or other relevant information has been received and considered,” the spokesperson said.

Finance and PwC met 15 times.

The now Allegro-owned firm, renamed Scyne, is feeling the hangover from tax leaks, too. It has lost five per cent of its staff on top of the 10 per cent it axed earlier this year, and just received $50m in fresh capital. The Sydney-based firm now has 950 people on the payroll, down from 1000 just two months ago and 1200 at inception.

Originally published as Finance clears PwC to tender for government work despite open police investigation into tax leaks scandal