PwC Australia's culture has been exposed in a report into its tax leak scandal.

A recent independent report has cast a critical eye on PwC Australia, revealing a culture where revenue growth sometimes took precedence over ethics. 

The report allegedly highlights a troubling pattern where PwC partners turned a blind eye to rule-breaking by influential “rainmaker” colleagues.

The report attributed this culture to an “overly collegial” environment, where too much power was vested in the chief executive and loyalty was often rewarded more than challenging senior partners. 

The scandal itself stemmed from the misuse of confidential government tax information, where a PwC partner leaked upcoming tax changes to colleagues. These colleagues then used this information to court business from major US tech companies such as Google and Uber.

PwC Australia has vowed to address these issues by introducing an independent chair above the chief executive and implementing several governance reforms. 

The aim is to rebuild its reputation, which has been tarnished by this political scandal, resulting in multiple investigations across the global PwC network.

The report also criticised the excessive power wielded by the chief executive and the prioritisation of revenue growth over the firm's values. 

Some individuals, referred to as “untouchables”, reportedly seemed exempt from adhering to the rules, according to the report. The review recommended a thorough governance overhaul to rectify these shortcomings.

PwC Australia says it intends to adopt governance structures more in line with public companies and will use the corporate governance code employed by ASX-listed firms where possible. 

Kevin Burrowes, PwC Australia's chief executive, says the company is committed to rebuilding trust and fostering change.

As part of the overhaul, non-executive members will join the governance board, one of whom will serve as chair, and the board will gain the authority to hire and fire the chief executive. 

Additionally, the firm will start publishing audited financial statements.

This overhaul signifies a departure from the traditional partnership model and introduces greater transparency and independent oversight within PwC Australia.

PwC Australia, with 2022 revenues of approximately $3 billion, is making these changes in response to the scandal that forced them to sell their government consulting business for a nominal $1 to mitigate political repercussions.

Australia's government is also taking steps in response to the scandal, proposing legislation to combat corporate tax avoidance and expand the authority of the tax regulator for professionals.

Politicians who uncovered PwC's leak of government secrets argue that the scandal extends beyond Australia. 

They have pointed to emails indicating that global partners were aware of receiving confidential material and providing assistance. 

PwC's global leadership claims no evidence of international partners using confidential information for commercial gain but is relying on a report from the law firm Linklaters that has not been publicly released.

Despite assurances from PwC's global division, some remain sceptical about the extent of international involvement and urge greater transparency in the matter. 

This scandal serves as a reminder of the importance of maintaining a culture of integrity and quality within the PwC network, according to Bob Moritz, PwC's global chair.