A proposal designed to stop illegal phoenix activity being actively considered in New Zealand could be similarly adopted in Australia, potentially saving billions of dollars.
Illegal phoenix activity which involves directors intentionally liquidating companies after shifting their assets to new (phoenix) companies to defraud taxation authorities, trade creditors and employees is widespread in Australia.
A Productivity Commission report last year found there were between 2,000 to 6,000 phoenix companies operating in Australia, costing A$1.8 billion to A$3.2 billion per annum.
Likewise, a Senate Economics References Committee inquiring into the Australian construction industry found illegal phoenix activity was a problem t…
Read the full article at: http://theconversation.com/illegal-phoenix-activity-is-costing-us-billions-heres-how-it-could-be-stemmed-65335
