What is illegal Phoenix activity?
Illegal phoenix activity is when a new company is created to continue the business of a company that has been deliberately liquidated to avoid paying its debts, including taxes, creditors and employee entitlements. This illegal phoenix activity impacts the business community, employees, contractors, the government and environment, including:
- non-payment of wages, superannuation and accrued employee entitlements
- getting an unfair competitive advantage over other businesses
- non-payment of suppliers
- loss of government revenue and increased monitoring and enforcement costs
- avoidance of regulatory obligations.
Phoenix activity doesn't just impact those people directly affected. It deprives the whole community of necessary funds that could have contributed to hospitals, roads, education and other essential services.
The ABCC is a member of the Phoenix Taskforce.
What is the Phoenix Taskforce?
The Phoenix Taskforce comprises Federal, State and Territory government agencies, including the ATO, Australian Securities & Investments Commission (ASIC), Department of Jobs and Small Business, and the Fair Work Ombudsman. The Phoenix Taskforce provides a whole-of-government approach to combatting illegal phoenix activity.
The Phoenix Taskforce works collectively to identify those who are undertaking illegal phoenix activity.
Learn more about the Phoenix Taskforce
You can find out more about the Phoenix Taskforce, including which government agencies are members, on the ATO website.