What is Illegal Phoenix Activity?
Illegal phoenix activity costs our economy $5.13 billion and can ruin lives.
It’s where a new company is created to continue the business of a company that has been liquidated. They do this to avoid paying debts, including taxes, creditors and employee entitlements.
WA Small Business Commissioner David Eaton spoke to Oliver Peterson today about new legislation the Federal Government wants to introduce to combat this activity that involves tracking individual directors.
He says this about holding to account the small number of directors who are doing the wrong thing.
ASIC has set up a hotline to report illegal phoenix activity – 1800 807 875
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