Newsletter
August 2018 Newsletter
Government Consults on Anti-Phoenixing Laws
The government has finally taken action against phoenixing for businesses of all sizes, by releasing a draft legislation that proposes to tackle all illegal phoenixing.
The main goal of this new legislation is to ensure the disruption of this illegal activity, it is also said that the package itself will provide the government and regulators with the right tools to disrupt this process.
New phoenix offences will be created to target those who engage in and facilitate these illegal transactions. If any Director of a business is found guilty of engaging in creditor-transfers of a company’s assets, which hinders, prevents or delays the access of the creditor to these assets then it will be seen as a major criminal offence.
It is important to understand that these measures are put in place to protect and assist creditors for the quick and efficient recovery of assets, this will also:
• Prohibit any Director from backdating their resignation to avoid personal liability
• Sole traders will not be allowed to leave their business if no Director is left in charge
• Directors will be personally reliable for GST liabilities
• The ATO will be given permission to withhold your tax refunds to pay for overdue amounts
As a small business owner it is critical for you to run a business by the books to avoid any problems with creditors and the ATO in the long run.
Read the full article at Public Accountant here: http://www.pubacct.org.au/news/government-consults-anti-phoenixing-laws