DIRECTOR PENALTY NOTICES TO INCLUDE UNPAID SUPERANNUATION

In the recent 2011 Federal Budget, the Government made its intentions clear in dealing with “phoenix activities” by Directors. The term “phoenix activities” is commonly used to describe arrangements whereby a company incurs, but does not pay, various liabilities whilst carrying on business activities. The amendments proposed are to extend the “Director Penalty Notice” provisions…

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Phoenix operator jailed for $6.7 million fraud

James Soong, 65, was today sentenced to three years jail in the Sydney Downing Court for failing to remit $6.7 million to the ATO. Between October 1995 and July 1998 two companies operated by Mr Soong deducted tax instalments totalling $6.7 million from the wages of their employees. This money was not remitted to the…

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ATO plans Security Bonds to beat phoenix Activity

The ATO is seeking amendments to its powers with the introduction of the Draft Tax Laws Amendment Bill 2010 that will give the ATO discretionary power to demand security deposits from businesses as part of securing likely or expected tax obligations. The draft legislation is an attempt to stop companies and directors engaging in phoenix…

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