PwC Australia Tax Scandal Fuels Global Implications: Explained

As PricewaterhouseCoopers’ Australia tax scandal moves into a new phase, the ramifications are likely to stretch far beyond Australia’s borders.

The scandal deals with an Australia-specific matter: PwC Australia’s misuse of confidential government tax information. But any investigation, like the one that Australia’s Treasury asked for on Wednesday, could extend into the US, in part because PwC’s Australia partners are believed to have shared the information with clients in the US. PwC’s US and UK affiliates have already expressed concerns.

While it isn’t yet clear whether other parts of PwC could be held liable for PwC Australia’s actions, the scandal ...