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Police Search PwC Sydney Office Amid Tax Scandal Investigation

A building that houses PricewaterhouseCoopers Australia office in Sydney, Australia, on Thursday, May 25, 2023. The Australian government has referred a PwC tax scandal to the police and asked them to consider a criminal investigation as political scrutiny mounts. (Brent Lewin/Photographer: Brent Lewin/Bloomb)

(Bloomberg) -- Police combed through PwC Australia’s Sydney office on Monday as part of an ongoing investigation into the firm’s tax scandal.

Chief executive Kevin Burrowes warned partners to expect a law enforcement presence at the site to examine files as part of the inquiries, according to a PwC spokeswoman. The Australian Financial Review earlier reported the development.

“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,” the statement from the firm said. Out of respect for the police’s work, “we won’t be commenting further,” adding that PwC is cooperating fully as it has done since the start. 

The Australian arm of PwC in the past shared confidential information from its work with the government on upcoming tax changes to generate new business at private firms. That resulted in the senior PwC partner at the heart of the scandal getting banned from providing financial services and formed the basis for inquiries into allegations of conflict and ethics breaches across firms in the industry and at multiple levels of government.

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Since the revelations, PwC Australia has overhauled its leadership and sold its government services unit. The Australian Federal Police in February said that an ongoing criminal investigation of PwC’s confidentiality breach — “Operation Alesia” — was international in scope.

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