Australian PwC affair: An international perspective

Abstract

This article delves into the recent PwC Australia controversy by examining reports and evidence from the Senate Finance and Public Administration References Committee (SFPARC). It aims to update the narrative surrounding the Australian PwC case from an international viewpoint. In June 2023, the SFPARC published an initial report scrutinizing the oversight and integrity of consulting services. This report highlighted the unauthorized release of confidential government information between 2013 and 2016 by PwC Australia partners. It evaluated PwC Australia's actions during and after the breach, including attempts to conceal the incident and the firm's subsequent public relations efforts. The SFPARC conducted an examination of the PwC case, assessing evidence gathered during the investigation along with publicly available data. The Committee concluded that PwC Australia had not adequately addressed the matter internally or held its partners accountable for their misconduct and subsequent cover-up. In its June 2023 report, the Committee made two recommendations: (1) for PwC to fully cooperate with any ensuing inquiries, and (2) for PwC to provide accurate and comprehensive information regarding its partners' and staff's involvement in the government data breach. The Committee accused PwC of attempting to conceal the tax leak scandal and criticized the leadership shortcomings among its top officials. In a follow-up report titled ‘PwC: The Cover-up Worsens the Crime’, the SFPARC alleged that PwC failed to disclose information about the conduct of its international partners. This report centred on a scandal involving a partner who, under confidentiality agreements, was prohibited from sharing confidential Treasury information on multinational tax regulations with coworkers. These coworkers then sold the information to American companies under the project codename ‘Project North America’.