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Furious about the damage to the brand's reputation, PwC International’s global general counsel, Diana Weiss, demanded that the Australian affiliate give up control over its handling of the scandal. Pixabay

Australian federal police officers launched a search at the PwC headquarters in Sydney on Monday for documents, as part of an investigation into a former partner, who allegedly leaked confidential government tax plans.

Following a parliamentary inquiry, which found that the firm had shared the data internally and attempted to cover up its use, the Treasury had referred the case to the police last year.

On Monday, PwC Chief Executive Kevin Burrowes informed the company's staff via email that the search at their Sydney headquarters will continue for several days, The Guardian reported.

"This step is an expected development in relation to an investigation the AFP commenced in 2023 into the historical tax matter and individuals who have left our firm," Burrowes told the staff.

"We have been working with the AFP to facilitate its attendance and will continue to cooperate with its investigation," he added, while urging the staff to "please carry on as usual and remain focused on the important work we're delivering with our clients and in the community."

The police investigation, known as Operation Alesia, was looking into whether former PwC Australia employees disclosed official secrets. This operation has been classified as a priority by the police, which informed the Parliament in February that it had initiated international inquiries.

The police launched the investigation in 2023 into PwC, which belonged to the "big four" accounting firms, over alleged breaches that resulted in the departure of several partners, including former CEO Tom Seymour, Reuters reported.

After the exposure of the tax scandal, the firm was forced to sell its profitable government consulting business, including its entire advisory service with 1,750 staff, to private equity investor Allegro Funds for just AU$1.

Furious about the damage to the brand's reputation, PwC International's global general counsel, Diana Weiss, demanded that the Australian affiliate give up control over its handling of the scandal or risk being expelled from the network.

She also insisted that a new "network representative" be appointed in Australia.

"All decisions relating to the accountability of individuals for the matters under review in the Senate Inquiry and related matters (...) must be reviewed by and agreed with me and the network representative," Weiss stated. "The firm shall not provide to any regulator or other governmental or legal authority any formal, significant or substantive submissions or responses (whether oral or written) regarding any of the topics until the network representative and I have reviewed and approved the materials."