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Camilla fires PwC after review finds it owes millions in taxes
Carrie LaFrenz
Jan 26, 2026
Camilla, the luxury fashion label known for its colourful kaftans and bohemian prints, has been forced to pay millions of dollars in back taxes and penalties and restate its financial accounts after a review by Australian authorities and issues with sales duties in the United States.
Accounts filed with the Australian Securities and Investments Commission in December, several months after they were due, show that the company paid back at least $5.4 million in taxes. The retailer, which is backed by the billionaire Forrest family’s private Tattarang investment vehicle, subsequently removed its long-time auditor PwC.
A Camilla store on Madison Ave in New York. The company has paid millions in back taxes in the US and Australia.
Tattarang, which also owns the R.M.Williams boot brand and Akubra, purchased a 25 per cent stake in Camilla for about $40 million three years ago. Camilla Franks remains creative director and owns the balance of the label she founded more than two decades ago in Bondi Beach.
One person with knowledge of the matter, who requested anonymity given the sensitive nature of the topi,c said Camilla had not paid taxes on online sales – its largest channel – in various US states for years. These issues were detected at the same time as the Australian Taxation Office was conducting its own review, which found non-compliance in local payments.
A Camilla spokeswoman said the company had identified “certain legacy tax issues” from previous financial years “across its Australian and US operations”.
Camilla’s leadership team took immediate action and voluntarily disclosed the issues with the relevant tax authorities both locally and in the US, and have been working closely and collaboratively with these authorities on all tax matters,” she said. “Since uncovering these issues, Camilla’s focus has been on full compliance and cost remediation.”
According to its filings, Camilla removed its auditor, PwC, in July and replaced the firm with KPMG. Records show PwC was paid more than $327,000 for audit and tax services in the previous year. PwC declined to comment.
The ATO declined to comment.
The accounts show Camilla’s sales reached $138 million in the year to June 29, up from $135 million the prior period, while bottom-line profits withered to just $444,522 – a fraction of the $2.7 million reported the previous year.
Camilla paid a $2.67 million dividend, in line with the prior year. That was lower than in 2023, when the company paid $24.2 million in dividends.
Camilla, which operates 32 boutiques, mostly in Australia, has repaid or accrued all outstanding tax costs with interest and non-material penalties.
The brand now has the added headache of the collapse of a major American retailing partner, Saks Fifth Avenue, whose parent filed for bankruptcy earlier this month, leaving suppliers across the globe facing unpaid invoices. More broadly, it has been a difficult year for luxury fashion, with the resurgence of tariffs leading to higher costs at the same time as consumer sentiment turns, forcing retailers to increase discounting.
A Camilla spokeswoman said the company was confident of its outlook despite the accounting issues, adding that the business had grown revenues by 15 per cent in the US over the past financial year.
“We will remain focused on growth initiatives, the appropriate governance, and fiscal discipline required to future-proof the business long-term and continue bringing our unique products and experiences to customers all over the world,” she said.
“Camilla remains committed to its global growth strategy through a disciplined and conservative approach to expansion.
“We continue to expand our retail footprint in the US in key locations, with the next store opening in Hawaii later this year. We also launched a successful resort pop-up format in The Atlantis Royal, Dubai, in October 2025 and are exploring other locations for this format.
“In Australia, we continue to roll out our new boutique format, with Chadstone opening later this year.”
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Carrie LaFrenz is a senior journalist covering retail/consumer goods. She previously covered healthcare/biotech. Carrie has won multiple awards for her journalism including financial journalist of the year from The National Press Club. Connect with Carrie on Twitter. Email Carrie at carrie.lafrenz@afr.com