A CPA and tax agent has today been announced as the latest causality in ASIC’s (and other Government agencies) ‘war’ on illegal phoenix activity.
Mr Hammond has been banned from being a director of a corporation for 5 years (the current maximum sentence). T
he most noticeable contravention: he engaged in activity that caused businesses his corporate entities owned to be transferred to new entities without valuable consideration.
Meaning creditors of c$1.4m were robbed of any assets in the 3 subsequent liquidations.
Treasury today released a bundle of reforms that are said to combat illegal phoenix activity.
One of the noticeable inclusions is that ‘reckless illegal phoenix activity,’ by individuals, may also soon be up for 10 years jail time, and/or 4,500 penalty units ($945,000) or three times the benefit.
For a corporation, it is 45,000 penalty units or $9.45 million maximum fine.
Unfortunately the reforms still do not deal with the introduction of director identification numbers (DINs).
For instance, per the below photo, for ASIC to let us know of this banning they had to lodge 5 different forms of the name “Jason Hammond”. Including one misspelt version of ‘Jaosn’. Surely we can do better?
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