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Our small business accountants in Sydney explain what a Phoenix company is

Now that everyone’s small business taxes should be sent into the tax office to be reviewed there has been an alarmingly large case of Phoenix Companies arising. As small business accountants in Sydney, we want to explain to you what this means.

The term ‘Phoenix Company’ did come from the ATO as a way to describe companies who were avoiding or surviving liquidation. Here is how our business accountants explain what they are:

• The general concept of a Phoenix company is that it rises from the ashes of a failed company
• The said new company begins trading as an identical business to the previous one, just under a different trading name
• The assets are transferred at no cost from the old company to the new one
• Then the old company enters into liquidation and leaves all of their creditors unpaid

If you are a small business who is owed money by some of these phoenix companies, then it is important for you to chase up with your small business accountants in Zetland to help you.

As always, feel free to get in contact with our small business accountants in Sydney with any enquiries that you may have or you can check out our services here.