PwC to reverse US tax split

PwC is planning to reverse the restructuring of its US tax practice U-turning on a strategy set out three years ago, according to the Financial Times.

Senior partner Paul Griggs, who is taking over in July, is set to reunify the tax division. The change dismantles the model implemented by current boss Tim Ryan, who previously split tax partners across the accounting and consulting arms.

The split in 2021 aimed to integrate PwC’s US audit business together with tax reporting and compliance under “trust solutions”, while tax consulting activities were moved into the advisory arm and renamed “consulting solutions”. 

But at the time the reorganisation caused “widespread discontent” among tax partners and the new leadership election saw all the main candidates supporting the business’ original reunification.

Now Griggs will scrap the “trust solutions” and “consulting solutions” divisions in favour of “assurance” and “advisory”. 

Griggs told the FT: “Tax is a tremendous brand and I’m a big believer that you never dilute a brand that has meaningful value. 

“Having the tax business connected to assurance and advisory is critical, but structurally I don’t need those businesses to be smashed together for that to happen.”

In a LinkedIn post Griggs announced that PwC’s new operating committee will help the firm be more “client-centric, tech-powered and agile”. 

Griggs added: “We have the right leadership, people and technical capabilities to achieve remarkable things. And we will be relentless in our pursuit of providing quality work across the firm and in serving our clients, the markets and our stakeholders.”