Since its establishment in 2014, the Phoenix Taskforce has worked to protect Australians – including the community’s most vulnerable – from illegal phoenixing.
Illegal phoenix activity is when a company is liquidated, wound up or abandoned to avoid paying its debts. A new company is then started to continue the same business activities without the debt.
The ATO-led taskforce unites the capabilities of key federal, state and territory agencies to reduce the incidence and impact of illegal phoenix activity across the Australian community. The taskforce works to detect, deter, and disrupt this harmful practice; to protect honest businesses, retrieve lost worker entitlements and bring consequences to those who seek to exploit the tax and super system.
Protecting businesses and the community
All taskforce members share the same goal – to level the playing field and ensure non-compliant businesses are held to account. By working together, the taskforce protects the Australian community from the impacts of illegal phoenix activity, including:
- employees missing out on wages, superannuation and entitlements
- honest businesses being put at a competitive disadvantage
- suppliers or sub-contractors being left unpaid.
What action we’ve taken
Over the last 10 years, the taskforce has tackled illegal phoenix activity with:
- communication, education and advice
- data and intelligence sharing
- early engagement with businesses and helping them understand their obligations
- tailored enforcement activities.
For those that choose not to comply, the taskforce takes action to disrupt illegal phoenix operators, facilitators and enablers by:
- conducting reviews and audits
- raising liabilities and imposing administrative penalties and interests
- pursuing the company’s debts and undertaking debt recovery, bankruptcy and insolvency action
- making directors personally liable for their company’s tax debts
- prosecuting the worst offenders.
Illegal phoenix affects all Australians
Illegal phoenix activity has wide-reaching impacts across the economy. It deprives the Australian community of valuable funds that could otherwise be used for essential services, such as schools, hospitals and roads.
You can help the taskforce combat illegal phoenix activity. If you know or suspect someone is engaging in illegal phoenix activity, we encourage you to report it to us. We take all tip-offs seriously and take further action as required. An anonymous tip-off can be made by visiting www.ato.gov.au/tipoff or phoning 1800 060 062.
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