05/07/2023 (Australia) - Consulting giant PwC has sold its Australian government advisory business for a nominal fee of A$1 (RM3.11) as part of its recovery efforts from a damaging tax leak scandal. The controversy arose in January when PwC staff shared confidential government tax briefing information to gain new business. Following executive dismissals, PwC completed the sale of its government advisory business, worth A$255 million (US$167 million) in the previous year.
The buyer, Allegro Funds, will operate the business as Scyne Advisory with approximately 1,750 staff members. Scyne Advisory partners Tim Jackson and Ben Neal are committed to transforming government advisory in Australia and rebuilding client trust. Their top priority is restoring trust by addressing client needs.
Scyne Advisory is now positioned to potentially secure new government contracts and continue previous work. The scandal began in 2015 when the Australian government introduced regulations to prevent tax evasion by foreign firms. An inquiry revealed that a senior PwC staffer breached confidentiality rules by sharing reform information with partners, leading PwC to aggressively market its services.
Australian authorities have been investigating the tax leak since May, with the parliament's finance committee preparing to hold public hearings. PwC Australia has acknowledged poor decision-making and admitted that profit took precedence over purpose in certain areas of the business.