A scathing report into PwC Australia has blamed a ‘shadow’ culture which tolerated bad behaviour in the pursuit of profit “growth at all costs”, and lack of governance practices that “went unexamined and uncorrected for many years” for the firm’s tax leaks scandal.
about the extent of its tax leaks scandal. The matter involved a former partner, Peter Collins, sharing confidential tax information with PwC personnel who then used it to help clients sidestep tax laws he was helping Treasury develop.The review identified seven key shortcomings in the firm’s governance, culture and accountability caused by an “accumulation of poor practices, which went unexamined and uncorrected for many years”.
“Historically at PwC Australia, partners have built and relied upon a high degree of trust in each other, with a preference for maintaining harmony,” he wrote. “In practice there is not a lot of constructive dissent, with relationships and loyalty being key to career progression.” He found “a general hesitancy to delve into uncomfortable conversations, to learn from mistakes and to be prepared to hold others to account”.
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