Show download pdf controls
  • How much does illegal phoenix activity cost the community?

    A new report: “The Economic Impacts of Potential illegal Phoenix Activity” was recently released which shows that the annual cost of illegal phoenix to business is in the range of $1,162m to $3,171m.

    Illegal phoenix activity occurs when a company is deliberately liquidated to avoid paying creditors, taxes and employee entitlements.

    The company then transfers the assets to a new entity, and continues to operate the same or a similar business under the same ownership. This allows for an unfair competitive advantage over other businesses, as illegal phoenix operators never meet their financial obligations.

    The report states illegal phoenix activity costs employees who aren't paid their entitlements between $31 and $298 million and costs the government around $1,660 million in unpaid taxes and compliance costs.

    The report puts the annual total cost of illegal phoenix activity at between $2.85 and $5.13 billion.

    The new report supports announcements made in the 2018 budget for proposed changes to legislation that will allow us to better combat illegal phoenix activity.

    See also:

      Last modified: 18 Jul 2018QC 56283