Google Got Confidential Tip Off From PwC in Australia Tax Breach

Alphabet Inc.’s Google has emerged as one of the firms that PwC Australia targeted when it used confidential tax policy information to tip off customers.

(Bloomberg) — Alphabet Inc.’s Google has emerged as one of the firms that PwC Australia targeted when it used confidential tax policy information to tip off customers.

PwC, which was advising the Australian government on incoming tax rules for multi-national companies, told Google about the start date of the legislation.

PwC Australia has overhauled its leadership and sold off its government services unit for just A$1 (67 cents) after revelations that it used confidential information from the government to pitch business. The firm is being investigated by lawmakers and Australian federal police for the breaches.

“While it is disappointing to learn that PwC had inappropriately shared information, it had no bearing on our compliance with the Multinational Anti-Avoidance Law,” according to a spokesperson for Google. “The changes we made to our tax structure in Australia were done both after the new law was passed and after engaging directly with the Australian Tax Office.” 

A spokesperson for PwC Australia said Thursday that “PwC’s clients were not involved in any wrongdoing and no confidential information was used to enable clients to pay less tax.”

Reuters earlier reported that PwC provided confidential information to the US firm. A Senate report showed there was no indication given by PwC to the company that this information was confidential. 

The saga has forced out former PwC Australia chief executive Tom Seymour as well as other partners, and has cost the firm access to valuable new contracts with Australia’s government, some of the country’s largest pension funds and its central bank. 

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