Is your business avoiding its debts?
As a consumer, you may or may not know someone that has been affected by a dodgy business that has shut down to avoid paying its debts.
We have seen this happen quite a bit over the last few years.
The business may seem to just disappear off the face of the earth, overnight, only to pop up under a different company name.
This as we know is called ‘phoenixing’ and it’s ILLEGAL.
It’s been around for many years and illegal phoenix activity happens in many different industries. The worst is many subcontractors and / or supplies are left unpaid and businesses may be forced to shut down.
Did you know the ATO has a taskforce called ‘Phoenix Taskforce’ whereby they work with other federal, state and territories to detect, deter and disrupt illegal phoenix businesses?
There are a few red flags to watch out for such as
- Companies providing unusually low quotes or tenders
- Company directors who have previously been involved with liquidated entities
- Changes to the company’s name and directors, but the manager and staff remain the same
- Companies requesting payments to be sent to a new company
- Told that your last contract won’t be paid, unless a new contract is signed, usually this is done under a different company name from the 1st one you began having dealings with.
If you suspect anything illegal, please contact the ATO and/or
- fill out a tip-off form online or complete it in the contact us section of the ATO app
- phone us on 1800 060 062
- email us at phoenixreferrals@ato.gov.au
Maree Punzet | Maree’s Mobile Bookkeeping | 0429 363 047
You didn’t go into business to do your Payroll and Bookkeeping, BUT WE DID
