In a media release issued on 13 November 2009, the Assistant Treasurer, Senator Nick Sherry, issued an Australia-wide warning against fraudulent phoenix activity and released a package of tough new proposals to crackdown on businesses who rip-off of their workers and the general taxpaying community.
The package of reforms, which is now open for public consultation, includes:
- ensuring that there are anti-avoidance provisions in the taxation law to cancel any benefits derived through fraudulent phoenix activity;
- reinstating the failure to remit offence that would make it an offence for an entity not to remit the required Pay-As-You-Go (Withholding) (PAYG(W)) amounts;
- making it an offence for directors to claim credits in relation to their own income for PAYG(W) amounts that have not been remitted by the company of which they are a director;
- extending the promoter penalty regime to provide a disincentive to those who promote fraudulent phoenix activity;
- expanding the Australian Securities and Investment Commission's powers to disqualify directors;
- expanding the role of the director penalty notice to impose stricter liabilities on directors and to cover a broader range of taxes and superannuation guarantee payments.
The closing date for submissions is Friday 15 January 2010.
For a copy of the Minister's media release, No 2009/090, 13 November 2009, go here
For a copy of the proposals paper, go here