Over the past decade or two many Directors and Shareholders have taken advantage of a lack of compliance producers to rip off the system by operating a business for a time, not paying any monies to the ATO (and often other creditors) and then letting the company fail with substantial debts owing to the ATO (Phoenix Operators). The ATO and ASIC have endeavored to stop this practice so anyone who thinks they can continue as before should think again. The ATO are carefully monitoring the activities of those who have been involved in Phoenix activities and in some instance they require up-front payments based on estimates of the likely future tax liabilities. Unfortunately it is very difficult staying one step ahead of such unscrupulous people however at least there is now a concerted effort to stamp out the practice which has seen many millions of taxes lost to government.
If your business is in financial stress and you are approached to restructure your company and transfer the business to a new company be very careful!! Please call for free consultation Now! before it is too late.