A look at how the Commissioner deals with phoenix companies
Source: Taxation In Australia Journal Article
Published Date: 1 Aug 2016
Phoenix activity typically involves the liquidation of a company with accrued debts, often including tax debts and employee entitlements, and the transfer of assets to related parties, following which the directors incorporate a new company and carry on the business as before, but now, hopefully, released from the creditors of the former company. Phoenix activity has long been a problem for creditors, notably including the Commissioner of Taxation. In recent years, the struggle against such practices has intensified, with pushes to
reformulate the law, increased monitoring of culprits and harsher penalties.
This article examines the problems posed by phoenix activity, and discusses the various remedies available to the Commissioner for deterrence and recovery. These include winding up, freezing orders and Mareva injunctions, director penalty notices, garnishee notices, PAYG withholding non-compliance tax, and security deposits. The a rticle also briefly discusses ATO initiatives to mitigate against the prevalence of phoenix activities.
Sorry, this is subscriber only content.
To gain access to this material and much more - Subscribe Now.
(Note: Members can access Taxation in Australia journal articles without a Tax Knowledge Exchange subscription - please log in to access).
Already a Subscriber? Login now
Details
- Published By: Stephen Chen CTA
- Published On:1 Aug 2016
The material is copyright. Apart any fair dealing for the purpose of private study, research criticism or review, as permitted under the copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.
Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.
The Tax Institute
(ABN 45 008 392 372 (PRV14016))
("TTI")
The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009.
Copyright Statement
All materials provided on this site are protected by copyright and are owned by or licensed to TTI.
Except as expressly permitted by TTI or the copyright owner, any person or company who uses this site must not use, reproduce, redistribute, retransmit, publish or otherwise transfer, or commercially exploit, the materials or any information, software or other content, in whole or in part, which is available through this site.
Tags
Share this page