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  • Consultation on the proposed expansion of the estimates regime to counter illegal phoenix behaviour

    We've published a Draft Practical Compliance Guideline (PCG 2019/D4) for consultation, explaining how the Commissioner intends to administer changes proposed in a Bill currently before parliament.

    The Treasury Laws Amendment (Combating Illegal Phoenixing) Bill 2019 proposes a package of reforms to address illegal phoenix behaviour. This includes bringing the goods and services tax (GST), luxury car tax (LCT) and wine equalisation tax (WET) within the existing law allowing the Commissioner to make estimates of certain overdue and unpaid tax-related amounts.

    The estimates expansion will allow the Commissioner to take prompt and effective action to recover unpaid amounts. The ability to make an estimate reduces the scope of phoenix operators and other non-compliant entities to escape their obligations.

    Our Draft PCG 2019/D4 is open for consultation until Friday 4 October 2019, and:

    • explains that the Commissioner will only make an estimate of outstanding GST, LCT and WET amounts where we suspect phoenix behaviour or asset dissipation
    • explains how a taxpayer can reduce or revoke an estimate
    • explains how a taxpayer can request extra time to challenge an estimate
    • provides examples to demonstrate application of the law.

    See also:

    Last modified: 16 Sep 2019QC 60115