Illegal phoenix activity occurs when a new company is registered to continue the business of a company that has been deliberately liquidated to avoid paying its debts. Illegal phoenix activity does not include genuine company failures and liquidations that occur when a business is in financial hardship.
Illegal phoenix activity often results in:
We are part of the Phoenix Taskforce which develops a whole of government approach to address illegal phoenix activity.
In order to address some of the risks with phoenix activity we:
For more information on illegal phoenix activity and the Phoenix Taskforce, refer to the ATO website.
We will support you if you do the right thing. If you are experiencing difficulty meeting your payroll tax commitments, contact us.
However, if you engage in illegal phoenix activity, we will identify and target you. We will firmly deal with you including by imposing penalties of up to 90 per cent on the payroll tax and in serious cases legal action in the Local, District or Supreme Courts.