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ASIC funding down the gurgler

The ASIC FY2019 annual report was released the other week, and unfortunately it is slim reading for Liquidators looking to ASIC to fund claims against dodgy directors/advisors. By their own admission, YOY comparisons show that the litigation fund set up by ASIC has decreased c$600k since FY2018: Remember, this funding is designed to help liquidators…

No express exclusion of set-off in the newly announced phoenixing offences: a missed opportunity!?

Really disappointed to see that the Commonwealth Treasury didn’t run with my idea of excluding the set-off defence (per s553C) from the newly announced illegal phoenixing offences under the Corporations Act. It would solve so many issues if s553C(3) was introduced into the Corporations Act, which could say something along the lines of: “For the avoidance…

ASIC gets a phoenix scalp, but no DINs

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…

ATO & ASIC MOU

Illegal phoenix activity is said to defraud the ATO by approximately $600 million per year and much more to the wider economy. Yesterday, ASIC and the Department of Jobs released to the public a new memorandum of understanding (“MOU”) entered into, for the purpose of combatting such illegal activity. The MOU is meant to assist…