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  • Keep an eye out for the illegal phoenix

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    28 April 2022

    Know a business that has shut down to avoid paying its debts, then reopened under a new name and continued to operate like nothing happened? This is called phoenixing and it's illegal.

    Illegal phoenix activity creates an uneven playing field and puts businesses doing the right thing at a competitive disadvantage.

    The ATO is working with other government agencies to detect, deter and disrupt illegal phoenix businesses. We collaborate on this important issue in the Phoenix Taskforce.

    In the latest episode of the Tax inVoice podcast, Assistant Commissioner George Montanez discusses the impacts of illegal phoenix activity and the steps you can take to avoid being burnt by phoenix operators.

    'Illegal phoenix activity can occur in any industry or location. However, it is most prevalent in industries like building and construction, labour hire and cafes and restaurants'.

    'The best defence against illegal phoenix activity is knowledge and knowing the warning signs. Warning signs may include not receiving pay slips or super payments and being given suspiciously low tenders or quotes for jobs'.

    'You should also keep an eye out for suspicious behaviour and make sure you do thorough background checks on who you're going into business with' he said.

    Follow any of the steps below to make an anonymous tip-off, or find out more via the following links.

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