BNR – PwC Australia has announced that it will sell its government business. This follows a scandal involving the misappropriation of classified government tax plans.
The accounting firm additionally disclosed the hiring of a new chief executive.
According to PwC Australia, the decision will enable the business to go ahead with certainty and concentration.
Tax Evasion Scandal
The confidential material was released by a former partner to the company in January. The ex-partner had discussed versions of corporate tax evasion regulations with colleagues while advising the Australian government. Colleagues employed the information to get new clients. The leaks took place between 2014 and 2017.
According to the firm, no confidential data was employed to assist clients in paying less tax.
However, legislators and officials have demanded that the firm be barred from receiving government contracts until the concerns are resolved.
PwC Australia said earlier this month that it has identified 76 current and former partners who were involved in the fraud. It also sent their names to Australian legislators.
Kristin Stubbins, acting chief executive of PwC Australia, stated that workers who acted inappropriately would face harsh penalties.
“We have failed the standards we set for ourselves as an organisation, and I apologise on behalf of our firm,” she said.
PwC Australia Restructured
On Sunday, PwC Australia named Kevin Burrowes as its new CEO. He was formerly the global clients and industries leader at PwC Network.
In addition, the firm announced that it will sell its federal and state government business in Australia to the private equity company Allegro Funds. The plan is to secure a deal on the contract by the end of July.
PwC Australia’s government practice employs around 1,750 people and generates approximately 20% of the firm’s yearly revenue.
Tom Seymour, the previous CEO of PwC Australia, resigned in May after admitting to acquiring the confidential material. Later that month, the business laid off nine partners and restructured its governing board.