The ATO, combined with other government agencies, is working through the Phoenix Taskforce to eliminate the problem of business owners liquidating their companies in order to avoid liabilities only to start essentially the same company again. This is a country wide issue and affects everyone such as the government through shortfall in revenue, employees through non payment of wages and entitlements and suppliers being left with unpaid accounts.
The ATO has put together a listing of the warning signs you may be involved unknowingly in a company that is practicing Phoenix activity. It also details some of the penalties received by illegal operators which can be significant.
Click on the link below to find out more:
https://www.ato.gov.au/general/the-fight-against-tax-crime/our-focus/illegal-phoenix-activity/?utm_campaign=illegal_phoenix_activity&utm_source=banner_secondary&utm_medium=web&utm_term=home_page
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ReplyDeleteThanks for the post.
Chartered Accountants