Some interesting observations from Kelly O’Dwyer MP in her second reading speech this morning in relation to #phoenix activity.
In introducing measures to require purchasers of new residential premises or subdivisions to remit GST on the purchase price directly to the ATO, Ms O’Dwyer remarked (according to ATO data in the past 5 years):
– 12,000 insolvent entities, controlled by 3,700 individuals had been identified as engaging in phoenix activity against the ATO; and
– $1.8 billion in debt had, as a result, been written off, with a further $1.2 billion in GST credits being claimed (ie a net black-hole of c$3 billion).
#Phoenixing by developers can arise when the developer dissolves their business into a new entity to avoid having to remit the GST on the sale of those properties.
If you suspect illegal phoenixing, contact ASIC or the Australian Taxation Office.
Source: Hansard
[…] Some Illegal Phoenixing Numbers […]
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