The Tax Office is continuing its focus on illegal phoenix activity within the pre-insolvency industry with 80 officers conducting access visits without notice on 2 sites across Victoria yesterday [Mon 3.4.2017].
ATO Deputy Commissioner, Michael Cranston, said the legitimate insolvency industry has strong concerns about those who may be promoting and facilitating illegal phoenix activity. Unlike registered liquidators, these so-called "specialists" operate in an unregulated environment and their behaviour undermines the whole industry, he said. ATO Deputy Commissioner, Timothy Dyce, said the businesses and individuals at the centre of these access visits are being pursued for their involvement in encouraging and facilitating illegal phoenix activity, non-lodgment and non-payment of GST, failure to remit PAYG withholding and unpaid income tax.
These Taskforce visits are a continuation of previous action that took place in August 2016 when 120 officers from the ATO and ASIC visited 13 business and residential sites. These original visits were triggered by complaints from the tax profession and legitimate insolvency practitioners, as well as intelligence gathered from the cross-agency Phoenix Taskforce which comprises over 20 federal, state and territory government agencies. Further information is available from the Phoenix Taskforce website.
Source: ATO media release, 3 April 2017