PwC Australia Tax Leak Records Draw Global Governance Concerns

Newly released documents showing how PwC’s global arm took control of its Australian firm’s response to a tax leak scandal have prompted criticism from lawmakers and observers over the governance structure of large accounting networks with local affiliates.

“In reality, the national firms have little independence,” Sheffield University accounting professor Richard Murphy said Tuesday. “They have to abide by centrally set systems and processes. What the Australian letters show is that if they don’t do this, they’ll be threatened with expulsion. That would mean they were no longer part of PwC and would cease to exist.”

The Australian Senate and ...