15 Jan 1010 On the limitations of yet more legislative "fixes"MEMBER 1 writes:
"Recent TAXVINEs have contained articles on phoenix companies and super early release schemes. Satisfying a condition of release or establishing a new company is permitted by law. Use of a company to intentionally not pay creditors and payments from a super fund where a condition of release has not been met are illegal and the current legislation has very clear penalties which ultimately can lead to gaol.
What the ATO and ASIC have a problem with is their ability to act as policemen to catch and prosecute the people involved. They are thus trying to write legislation that stops this criminal behaviour. This cannot be done. You have to either educate the public on what behaviour is criminal or have good policing activities. The only time legislation has stopped crimes being committed is when prostitution, gambling and late night drinking were made legal.
All that policing by legislation achieves is making life more inconvenient for the honest citizens. A criminal by definition has no regard for legislation."