The Australian Taxation Office (ATO) has issued a warning to business owners across the nation by detailing its latest operation in targeting and eradicating phoenix businesses.
A Phoenix is where a business has been deliberately transferred to a related party for inadequate consideration and the old company is placed into liquidation so that the business owners are able to avoid paying creditors, employees and tax. The Phoenix of a business creates an unfair market advantage as the process allows them to undercut their competition by not paying business overheads and taxes.
DID YOU KNOW?
The Australian Economy accounts for approx. $3.2 billion a year of Fraudulent Business Activity
The significant increase in fraudulent phoenix activity and high costs to the Australian economy (approximately $3.2 billion a year) has led to the establishment of the Inter-Agency Phoenix Forum — a joint operation by the ATO and various other government agencies. Within this forum, collective intelligence is combined to design and carry out operations that will decrease illegal phoenix activity across Australia.
The ATO Deputy Commissioner Michael Cranston explained that the operation involved a string of surprise access visits to multiple business and residential sites in Sydney. The visits were made with the assistance of the NSW Police Gangs Squad Strike Force Raptor, National Anti-Gangs Squad and Middle Eastern Organised Crime Squad.
Cranston stated that the information gathered from the companies will be used to provide more intelligence about potential phoenix operators and facilitators in Australia, and the methods that they use to try to cheat the national tax and superannuation systems.
The consequences for engaging in fraudulent phoenix activity are very serious. To avoid the possible confiscation of personal assets and lengthy jail sentences that may result from conducting in phoenix activity, contact Australian Company Liquidations (ACL) today. The liquidators at ACL are registered and licensed with the Australian Securities and Investments Commission and will handle your liquidation case in adherence to their strict protocol and
standards, ensuring that your company’s actions remain lawful. Call us today on 1800 981 070
FOR A LAWFUL LIQUIDATION
CALL US TODAY ON 1800 981 070