Australian police are investigating a tax leak scandal at accounting firm PwC, the latest in a series of global tax investigations into big companies.
According to reports, the Australian Federal Police (AFP) is probing the activities of PwC after leaked documents suggested it had engineered international corporate tax avoidance schemes, dealing with some of the world’s biggest corporations.
The AFP has confirmed it has launched an investigation and is “working closely” with international partners to gather evidence.
The documents, part of the so-called “Paradise Papers,” revealed that PwC had assisted its clients in setting up a complex network of overseas financial deals.
The company has denied any wrongdoing.
PwC is one of the “big four” accounting firms, along with Deloitte, KPMG and EY.
The Paradise Papers have added to the growing pressure on big accounting firms as regulators and governments work to clamp down on tax avoidance schemes.
The global investigations come at a time when corporate tax avoidance is increasingly controversial due to high-profile cases such as Apple’s alleged tax avoidance scheme in Ireland.
The AFP’s investigation marks a significant step towards tackling corporate tax avoidance in Australia, and could be a warning for other international accounting firms.