Illegal Phoenix Activity: Practical Ways to Improve the Recovery of Tax

Sydney Law Review, Vol. 40 No. 2 (2018)

U of Melbourne Legal Studies Research Paper No. 795

34 Pages Posted: 25 Oct 2018

Multiple version iconThere are 2 versions of this paper

Date Written: October 25, 2018

Abstract

Illegal phoenix activity generally involves closing one debt-laden company and continuing its business through another company minus those debts. Its propensity to cause losses of federal revenue has recently been highlighted by the Australian Government Treasury announcement of a suite of measures to combat it. However, there is already an extensive array of legislative and administrative tools that are available against illegal phoenixing. This article considers both the existing and proposed measures and makes some practical suggestions to improve the recovery of tax. However, solutions are not found exclusively in tax law and its administration. Since illegal phoenix activity is facilitated by the creation and demise of companies and their controllers are regulated by the Corporations Act 2001 (Cth), suggestions are made regarding corporate law and its administration by the Australian Securities and Investments Commission.

Keywords: phoenix activity, tax recovery

JEL Classification: K22, K34

Suggested Citation

Anderson, Helen L., Illegal Phoenix Activity: Practical Ways to Improve the Recovery of Tax (October 25, 2018). Sydney Law Review, Vol. 40 No. 2 (2018); U of Melbourne Legal Studies Research Paper No. 795. Available at SSRN: https://ssrn.com/abstract=3272582

Helen L. Anderson (Contact Author)

Melbourne Law School ( email )

University of Melbourne
Melbourne, 3010
Australia
+61 3 90355467 (Phone)

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
8
Abstract Views
194
PlumX Metrics