• 3. Review of action items

    Review of action items from 16 November 2011 meeting.

    Action item no.

    What

    Status

    3.1

    The ATO and ASIC will hold further discussions with their executives in relation to the formation of a 'task force'. The ATO will take the lead on this and will develop a proposal for review and input by ASIC prior to ASIC tabling the proposal for consideration by their executive. (ATO and ASIC)

    Update 1 August 2012: The ATO has received support from their executive to explore this option further however ASIC was unable to provide an update as their representative did not attend for this item.

    Ongoing

    6.1

    CER and DCCEE to forward their agency's phoenix definition to the Secretariat. (CER and DCCEE)

    Update 1 August 2012: CER is to forward this as soon as it is available, however DCCEE did not attend the meeting.

    Ongoing

    8.1

    Each agency is to nominate a communications officer to assist in communication activities.

    Completed

    Review of action items from 19 April 2012 meeting.

    Action item no.

    What

    Status

    2.1

    The latest version of FWO report Phoenix activity Sizing the problem and matching solutions will be distributed to members for information.

    Completed

    3.1

    Conduct further analysis on the ATO's Wealthy Australians and High Wealth Individuals who are associated with entities that have liquidated, with ASIC's directors disqualification register. (ATO)

    Update 1 August 2012: The ATO will formally write to ASIC to secure data to assist in this process.

    Ongoing

    3.2

    The ATO will review the data it currently receives from ASIC and ascertain if it can be manipulated further to assist in phoenix risk identification. (ATO)

    Update 1 August 2012: The ATO will formally write to ASIC to secure data to assist in this process.

    Ongoing

    4.1

    ASIC will review the number of cases they have referred to the ATO since the establishment of this forum and compare it with the number referred prior to the forum and report back to the group. (ASIC)

    Update 1 August 2012: Since June 2009 ASIC has referred a total of 114 matters to the ATO relating to Self Managed Super Funds, ABN, the early release of superannuation and other tax related issues. Of these, the ATO requested information on 6 of the matters (5 prior to this forum being established and 1 since) and ASIC proactively (i.e. not requested by the ATO) referred 3 to the ATO (2 prior to the forum being established and 1 after).

    Completed

    4.2

    FWO will forward details of their referred cases to ASIC who will review them and advise FWO how best to achieve a positive outcome for future referrals. (FWO)

    Update 1 August 2012: FWO referred case details to ASIC who did provide explanations for the cases however ASICs proposed new legislation may clarify this further. The Chair reiterated the forum is for sharing information between agencies but within each other's legislation. Forum members do not need to know the exact details however they should be kept informed so as to demonstrate the effectiveness of the relationships formed through this forum.

    Completed

    5.1

    The ATO will develop a draft report on measuring the effectiveness of the forum and circulate to members for input. (ATO)

    • The current effectiveness indicators used by the ATO are:
      • % change in the number of known serial phoenix offenders who stop phoenixing and either comply or get out of business
      • % change in the number of new/emerging phoenix operators
      • % change in quantum of cash collected against liabilities raised
      • Level and tone of media coverage
      • Level and tone of community feedback
       
    • The Chair has drafted a report on the risks, behaviours, outcomes, effectiveness and indicators for phoenix. This will be circulated to members for completion from their own agency perspective. The report will then provide a collective view of phoenix from the forum.
    • The Chair mentioned he was interviewed recently by a journalist from the Financial Review concerning the ATO's new legislation to address fraudulent phoenix behaviour and also in relation to this forum. FWO advised that during an interview with Sky Business on the release of their Phoenix activity Sizing the problem and matching solutions report the Fair Work Ombudsman also mentioned this forum.
    • The Chair advised that the Commissioner of Taxation will be forwarding a letter of appreciation to each agency head, to thank them for participating in this forum and to highlight key achievements so far.
     

    Ongoing

    5.2

    ASIC will look at ideas on how members can, through forward planning, assist in identifying potential phoenix operators. (ASIC)

    Ongoing

    6.1

    Advice will be sought from Chair's of other forums on the publishing of minutes on the ATO's website. (Chair)

    Update 1 August 2012: The ATO advised 'draft' minutes from meetings are published to the ATO's website and republished after they have been endorsed at the following meeting.

    Completed

    6.2

    ASIC and the ATO will discuss how they may be able to improve the information received from insolvency practitioners. (ASIC and ATO)

    • Adrian Brown (ASIC) recently addressed both the ATO Phoenix Steering Group and the ATO/ASIC Liaison Forum about this issue. Further discussions with the ATO's insolvency area are planned.
    • ASIC advised they will be conducting information sessions to Insolvency Practitioner's towards the end of this year in relation to the completion of 'reports', as they are an important part of their role. The ATO will also be conducting information sessions to Insolvency Practitioners concerning the fraudulent phoenix legislation over the next few months.
    • ATO advised that when field officers meet with insolvency practitioners concerning a phoenix matter, they will encourage the practitioner to include in any formal reports to ASIC, mention of the fact the ATO's Phoenix area is interested in the client.
     

    Completed

    6.3

    ASIC and the ATO will discuss an enquiry they received from a Melbourne based university professor.

    Completed

      Last modified: 14 Dec 2012QC 26757