The scandal in Australia, where secret government documents were leaked, is causing disquiet at PwC’s global top, various media reports. Some large clients will benefit from inside information about upcoming tax laws. This issue has hurt PwC’s Australian bosses and may also have international ramifications.

Partners allegedly used classified documents from the Australian government around 2015 to approach new clients in the technology sector for tax advice, report including the Financial Times. The documents describe what the new Australian tax avoidance laws and regulations will look like. Useful, as it allows customers to customize their financial construction before new laws are enacted. This allowed PwC clients to start thinking about financial construction even before the law went into effect in 2016. PwC is an adviser to the Australian Ministry of Finance and was therefore able to obtain the confidential documents. Veteran PwC partner Peter-John Collins is said to have shared the documents with colleagues, who then won customers with them. This issue was raised during a session of the Australian Senate. The leak partner already received a two-year professional ban last year. PwC Australia CEO Tom Seymour has had to resign despite a broad apology during a parliamentary inquiry, reports including The Guardian.

The American branch made millions with it

This case is international, as colleagues in the United States, Ireland and the United Kingdom were also exposed to classified documents, which would have brought millions of businesses to San Francisco. It’s not clear how many customers will benefit from the information. According to the Australian Financial Review, 23 American companies will be involved, including giants Apple, Google and Microsoft. They were allegedly contacted just hours after plans for a new tax avoidance law were announced, with the announcement that PwC has a solution for this.

Meanwhile, Australian politicians are demanding more action, such as disclosing the names of all partners who share information and benefit from the company. To get the fire under control, an international delegation from PwC went to Sydney. Not only to appease politicians, but also to investigate what happened. PwC may also contact affected customers.