Analysis of Black Economy and Phoenixing in Australian Corporate Law

This report provides a detailed analysis of the Black Economy Taskforce Final Report released in October 2017, focusing on the black economy and phoenixing in Australia. The report addresses key questions, including the estimated costs of phoenixing to the Australian economy, the industries most affected, and the difficulties in pursuing phoenixing entities. It also examines early warning signs and recommendations for addressing illegal phoenix activity. The report highlights the definition of the black economy, which encompasses activities outside the taxation and legal systems, and defines phoenixing as the intentional transfer of assets to avoid paying creditors. The report estimates the cost of phoenixing to the federal government and businesses. It also identifies the building and construction industries as highly susceptible to phoenixing. The report discusses the difficulties regulators face in pursuing phoenixing entities and identifies sources for early detection, such as financial institutions and insolvency experts. Finally, the report outlines the recommendations proposed by the task force, including new offenses, debt recovery, and increased resources for regulators. The report provides a comprehensive overview of the issue and suggests potential strategies for combating phoenixing and the black economy.