PwC Settles Tax Leak Dispute with Ex-Partner

PwC has reached a multimillion-dollar settlement with a former partner it accused of being linked to the misuse of confidential government information. The agreement marks the fourth such payout as the firm continues to manage the fallout from the controversy, avoiding a potentially revealing court battle.

The case involved a tax partner who sued PwC after losing access to a lucrative retirement payment plan. His exit followed PwC’s internal investigation, which named several senior figures connected to leaked tax policy briefings. The firm initially alleged misconduct and took legal action to counter his claims, but the settlement now brings an end to the dispute.

Over the past two years, PwC has undergone significant restructuring, selling off parts of its business while also settling with multiple former partners. The scandal, which involved sharing sensitive government tax plans with clients, has already cost the firm millions in legal payouts and reputational damage. Regulatory investigations remain ongoing.

This latest settlement avoids a court hearing that could have exposed PwC’s internal financial policies, including restrictions on leaving partners working for competitors. If the lawsuit had proceeded and the claims were upheld, it could have opened the door to further former partners seeking payouts, increasing costs for the firm.

PwC has previously estimated that the broader tax leak scandal could cost the firm up to $1 billion. In response, it has made structural changes, including selling its public sector consulting arm for just $1. Meanwhile, professional regulators continue reviewing the conduct of former partners implicated in the case.

Source: Australian Financial Review, Bloomberg Tax