into their organisations. Increased deal activity many businesses faced in meeting their reporting beginning in the second quarter of the year drove obligations remotely throughout the pandemic - the additional opportunities focused on value creation changing tax landscape has also boosted clients’ and preservation, with clients seeking to maximise need for integrated compliance services. value from their transactions and any consequent restructuring. Despite the challenges posed by the Investments pandemic and the inability to travel, our advisory Investments are made by individual partnerships, or businesses across the world were able to bring may be made by groups of partnerships collaborating together a wide range of capabilities for clients in together. These investments cover technology virtual ways, helping them create value and build development, hiring of new partners and staff, the sustained outcomes for their stakeholders. training of employees and acquisitions. Tax & Legal Services: In FY21 revenues from our tax, Unlike companies, partnerships generally can make legal and people operations grew by 1.7% to US$11 investments only from current year income, or from billion (FY20: US$10.6 billion), against the backdrop of bank borrowings secured on future income. Therefore an increasingly complex and challenging environment, most investments are charged to the income driven by various factors including the impact of the statement in the period in which they occurred as an pandemic and local and global tax policy changes. expense. The treatment of acquisitions is dependent upon the individual partnership and acquisition, and As governments and businesses continue to varies from holding the asset in the balance sheet to charging the costs of the acquisition to the income negotiate the challenges of the pandemic and the resulting signiifcant increases in country deifcits, we statement over a period ranging from one to 10 years. are seeing growing demand for the PwC Tax & Legal Despite the heightened economic challenges of network to help clients navigate an increasingly complex tax landscape. Demand in FY21 was the past year, PwC has continued to prioritise ongoing investments in the future of our people, particularly high for Tax deals services and People & Organisation services, where we experienced new technologies, the quality of our work, and new products and services. Across the PwC network, an increasing need for transformation services as businesses reimagine their supply chains, we invested over US$2.6bn during FY21 following on from investments of more than US$3bn in FY20. operating models and workforce of the future. While we saw steady demand for Tax Reporting and This investment occurred despite a more cautious approach to overall spending and a smaller number Strategy services - principally around compliance of new partner admissions. and managed services, in light of the challenges