Pension funds freeze PwC contracts over Australian tax leaks

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement


Pension funds freeze PwC contracts over Australian tax leaks

MELBOURNE, AUSTRALIA - JULY 30, 2018: PwC headquarters building

Five Australian pension funds representing more than A$750 billion in savings have frozen contracts with PwC Australia, in reaction to the tax leaks scandal.

PwC Australia has lost out on new deals with a growing list of superannuation funds since the tax leaks scandal engulfed the ‘big four’ firm.

One such fund, Aware Super, decided to temporarily freeze new contracts with the firm on Friday, June 9. A spokesperson explained: “We’re deeply disappointed by the reported failures of governance, accountability and culture at PwC.

“We look forward to the full extent of this issue being promptly investigated and addressed,” said the spokesperson.

AustralianSuper was the first major pension fund – with A$270 billion ($182 billion) in assets – to freeze new contracts with PwC on June 2, but several companies have since initiated reviews over the scandal.

Aware Super, Australian Retirement Trust, CareSuper and Hesta have followed AustralianSuper’s decision to freeze contracts with PwC Australia. These super funds collectively hold more than A$750 billion in retirement savings.

Meanwhile, LegalSuper and Rest Super are reviewing their arrangements with the firm, and Cbus and Hostplus are reportedly monitoring developments closely. Most of the Australian pension industry relies on the big four firms for audit and tax services.

Each company needs two firms to handle internal and external audits separately. This may mean super funds will turn to PwC’s rivals for new contracts.

PwC Australia has so far not commented on the decisions of these clients.

Tax leaks scandal

The scandal initially erupted after it was discovered that Peter-John Collins, former head of international tax at PwC Australia, had sent confidential emails detailing legislative changes on tax avoidance to colleagues between 2015 and 2016.

Collins retired in October 2022, but the scandal broke in January this year. He was later banned by Australia’s tax industry watchdog, the Tax Practitioners Board, on January 23.

PwC Australia CEO Tom Seymour stepped down on May 8 2023 after it was confirmed that he had received information from Collins. He later announced his plan to retire in September.

The Australian Federal Police launched a criminal investigation into Collins on May 24, before PwC Australia suspended nine unnamed partners on May 29.

Last week, in a letter to the Australian Senate, PwC named all 67 members of staff who received confidential information by email.

The big four firm is conducting an internal inquiry, and there is an independent review set to conclude in September.

more across site & shared bottom lb ros

More from across our site

Opening doors for existing talent within Baker McKenzie and a desire for enhanced legal capabilities informed Ricardo Perera’s switch from KPMG
Boaz Goren’s move to the upstart PE-backed firm takes the number of senior UK tax professionals who have left EY this year to 13
The allegations against Deloitte Cyprus raise uncomfortable questions about how far the big four can distance themselves from misconduct at member firms
The UAE accounted for most Middle East promotions and new rankings, as A&M Tax, Baker McKenzie, Dhruva Consultants and DLA Piper breached the top tier
Spanish-headquartered multinationals lead on reporting quality, while US and Swiss groups lag in the Fair Tax Foundation’s expanded analysis
Former IRS commissioner Danny Werfel joins ITR for a must-listen conversation spanning his time leading the agency, his AI risk framework, and the future of the OECD
Tax and legal services was PwC’s fastest-growing business line last year, helping to put the firm back on a par with its big four rivals
Ex-EY and Hourani & Partners leader Zain Satardien is using flexible staffing and AI-enabled systems to test a leaner model for specialist legal and tax advice
The big four firm is rightfully prioritising transparency and accountability as it seeks to rebuild from its scandal, but a glaring structural issue remains
A recent hiring flurry has taken the firm’s number of partner appointments this year to 121 and put it on track to hit 160 partner target early
Gift this article