Federation University Corporate Law Assignment: Phoenixing Report
VerifiedAdded on 2022/11/17
|8
|2790
|341
Report
AI Summary
This report delves into the intricacies of corporate law, specifically focusing on the issue of 'phoenixing,' which involves the deliberate liquidation of a company to avoid debts and liabilities, often leading to the creation of a new entity to continue operations. The report begins by defining the black economy and its various components, highlighting the illegal and unreported aspects of financial transactions. It then examines the economic impacts of phoenixing in Australia, citing estimated financial losses and the industries most affected, particularly the construction and building sectors. The report explores the vulnerabilities of these industries, detailing factors like cash-based labor, the prevalence of sham contracting, and the role of external administration. Furthermore, it analyzes the difficulties faced by regulators in identifying and controlling phoenix activities, particularly concerning the actions of company directors. The report also identifies early warning signs and triggers associated with phoenixing, such as the establishment of new companies before the failure of the old ones, unstable credit behavior, and the involvement of the same directors. Finally, the report mentions the recommendations and measures specified in the Black Economy Report to combat phoenixing and promote economic integrity.
CORPORATE LAW
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
Answer 1)
The black economy refers to the section of population who conduct their operations outside
the regulatory framework and the taxation system. In addition, this includes the people whose
identity is known to the regulatory authorities but they evade tax and do not report their
incomes correctly. The black economy is comprised of a range of practices such as the
acceptance and payment of wages outside the book in cash, understatement of takings,
complex financial transactions that makes the tracking of source of funds complicated, and
other money laundering practices. The typical origin of black economy is when restrictions
are imposed by the government on the economic activity in the form of goods and services
being regarded as illegal or imposition of high taxes to ensure the high costing of certain
goods or services. Hence, the black market originates for the manufacture and exchange of
the illegal goods and services. The black economy is further classified into four categories
namely the illegal economy, the informal economy, the unrecorded economy and the
unreported economy. While, the illegal economy includes the economic transactions that are
not allowed as per the statutes, the unreported economy is aimed at evasion of the rules stated
in the tax codes. Further, the unrecorded economy denotes the collection of the economic
activities aimed at bypassing the institutional rules in context of the fair reporting to the
government statistical agencies. Lastly, the informal economy are aimed at minimization of
the costs and thus are not able to benefit from the rights stated in the laws in context of the
social security, torts, financial credit systems and others.
The phoenixing is referred to as the creation of a new company in exchange of the deliberate
liquidation of an old company in order to facilitate the avoidance of tax liability, employees’
dues, and the debts of the creditors. Thus, the outcome of the activity is that the directors and
top management of the new company with a clean record of the corporate yet again use the
old assets and resources of the liquidated company1. The community as a whole is impacted
due to the illegal phoenix activity including the stakeholders namely the employees, the
government, contractors, investors, and others. In addition, the whole society is deprived of
the necessary funds in the vital sectors.
Answer 2)
1 "Pricewaterhousecoopers, Phoenix Activity: Sizing The Problem And Matching Solutions", Fairwork.Gov.Au,
2019, http://www.fairwork.gov.au/Publications/Research/Phoenix-activity-report-sizing-the-problem-and-
matching-solutions.pdf.
The black economy refers to the section of population who conduct their operations outside
the regulatory framework and the taxation system. In addition, this includes the people whose
identity is known to the regulatory authorities but they evade tax and do not report their
incomes correctly. The black economy is comprised of a range of practices such as the
acceptance and payment of wages outside the book in cash, understatement of takings,
complex financial transactions that makes the tracking of source of funds complicated, and
other money laundering practices. The typical origin of black economy is when restrictions
are imposed by the government on the economic activity in the form of goods and services
being regarded as illegal or imposition of high taxes to ensure the high costing of certain
goods or services. Hence, the black market originates for the manufacture and exchange of
the illegal goods and services. The black economy is further classified into four categories
namely the illegal economy, the informal economy, the unrecorded economy and the
unreported economy. While, the illegal economy includes the economic transactions that are
not allowed as per the statutes, the unreported economy is aimed at evasion of the rules stated
in the tax codes. Further, the unrecorded economy denotes the collection of the economic
activities aimed at bypassing the institutional rules in context of the fair reporting to the
government statistical agencies. Lastly, the informal economy are aimed at minimization of
the costs and thus are not able to benefit from the rights stated in the laws in context of the
social security, torts, financial credit systems and others.
The phoenixing is referred to as the creation of a new company in exchange of the deliberate
liquidation of an old company in order to facilitate the avoidance of tax liability, employees’
dues, and the debts of the creditors. Thus, the outcome of the activity is that the directors and
top management of the new company with a clean record of the corporate yet again use the
old assets and resources of the liquidated company1. The community as a whole is impacted
due to the illegal phoenix activity including the stakeholders namely the employees, the
government, contractors, investors, and others. In addition, the whole society is deprived of
the necessary funds in the vital sectors.
Answer 2)
1 "Pricewaterhousecoopers, Phoenix Activity: Sizing The Problem And Matching Solutions", Fairwork.Gov.Au,
2019, http://www.fairwork.gov.au/Publications/Research/Phoenix-activity-report-sizing-the-problem-and-
matching-solutions.pdf.
The economic impacts of the illegal phoenixing activity on Australia have been described as
follows. It is vital to note that illegal phoenixing activity can occur in any location or
industry, nevertheless it has high prevalence in the in major centres like the building and
construction, cafés and restaurants, mining, transport, agriculture, security services, childcare
services, cleaning, labour hire, payroll services, computer consulting, and others. As per the
Black Economy Taskforce Final Report (Report), there has been an estimation of the annual
direct impact of within the range of $2.85 billion and $5.13 billion, in relation to the illegal
phoenix activity in Australia. In smaller terms, the repercussions of the phoenix activity is the
non-payment of the government revenues, which leads to quite a lesser revenue collection for
regulators, non-payment of the employment dues including awards, and outstanding balances
of debts leading to blockage of money.
Answer 3)
The phoenixing activity can occur in any industry; however, the same is most prevalent in the
Australian construction and building industry. It is significant to note that the Cole Royal
Commission had long ago highlighted the instance of the particularly vulnerable to this
activity in the year 2003 itself2. In addition the building industry that is incidental is also
prone to the said issue. The chief reason for vulnerability of said industries is that company
controllers in the said lines of businesses have a unique set of skills. As a result, even when
the business fails the said skills would force the individuals to remain in the said line of
businesses only. In addition some of the other reasons that contribute towards the occurrence
of the phoenixing activity are stated as follows. It is vital to note that the construction and
building industry is comprised of a number of activities such as the form working,
scaffolding, concreting, bricklaying, plastering, steel-fixing and gyprock fixing. The workers
are hired on the basis of daily wages in the said activities. As a result, in the said activities,
the record keeping is minimal which is otherwise significant to keep the track of the cash. In
addition, the employment conditions in the said industry are quite different from the other
industries as stated follows. The employees are often hired in the said industry intermittently
for temporary periods of time. As a result, there are no formal contractual employment
requirements complied with. In addition, there is a large hiring of the migrated workers as
well who do not disclose their true identity details. Further to add, the knowledge of
entitlements is very low in the said category of employees. In addition to the above facts, it
2 Helen Anderson et al., "Defining And Profiling Phoneix Activity", Monash.Edu, 2019,
https://www.monash.edu/__data/assets/pdf_file/0004/906043/defining-and-profiling-phoenix-activity.pdf.
follows. It is vital to note that illegal phoenixing activity can occur in any location or
industry, nevertheless it has high prevalence in the in major centres like the building and
construction, cafés and restaurants, mining, transport, agriculture, security services, childcare
services, cleaning, labour hire, payroll services, computer consulting, and others. As per the
Black Economy Taskforce Final Report (Report), there has been an estimation of the annual
direct impact of within the range of $2.85 billion and $5.13 billion, in relation to the illegal
phoenix activity in Australia. In smaller terms, the repercussions of the phoenix activity is the
non-payment of the government revenues, which leads to quite a lesser revenue collection for
regulators, non-payment of the employment dues including awards, and outstanding balances
of debts leading to blockage of money.
Answer 3)
The phoenixing activity can occur in any industry; however, the same is most prevalent in the
Australian construction and building industry. It is significant to note that the Cole Royal
Commission had long ago highlighted the instance of the particularly vulnerable to this
activity in the year 2003 itself2. In addition the building industry that is incidental is also
prone to the said issue. The chief reason for vulnerability of said industries is that company
controllers in the said lines of businesses have a unique set of skills. As a result, even when
the business fails the said skills would force the individuals to remain in the said line of
businesses only. In addition some of the other reasons that contribute towards the occurrence
of the phoenixing activity are stated as follows. It is vital to note that the construction and
building industry is comprised of a number of activities such as the form working,
scaffolding, concreting, bricklaying, plastering, steel-fixing and gyprock fixing. The workers
are hired on the basis of daily wages in the said activities. As a result, in the said activities,
the record keeping is minimal which is otherwise significant to keep the track of the cash. In
addition, the employment conditions in the said industry are quite different from the other
industries as stated follows. The employees are often hired in the said industry intermittently
for temporary periods of time. As a result, there are no formal contractual employment
requirements complied with. In addition, there is a large hiring of the migrated workers as
well who do not disclose their true identity details. Further to add, the knowledge of
entitlements is very low in the said category of employees. In addition to the above facts, it
2 Helen Anderson et al., "Defining And Profiling Phoneix Activity", Monash.Edu, 2019,
https://www.monash.edu/__data/assets/pdf_file/0004/906043/defining-and-profiling-phoenix-activity.pdf.
must be noted that while high degree of control is exercised by workers unions in the big
CBD sites, the case is not the same in small building sites. One of the yet another chief
reasons for the construction industry being dominated by the phoenix activity is due to the
reasons of the sham contracting3. In this scenario, attempts are made to disguise the
employment relationship to be called as that of the independent contractor and that of the
client. Thus, the employment standards are undermined to allow the employers in the said
industry avoid the associated costs of the standard procedures such as annual leave, sick
leave, and redundancy payments. In addition, the said systems are engaged in the additional
ignorance of statutory obligations such as sick leave, annual leave, and redundancy payments.
Hence, the illegal employers get a competitive advantage in the form of shifting of burden
and responsibilities on the employees as compared to the legitimate employers.
Answer 4)
It is vital to note that the external administration of the construction and building industry
makes the said industries highly prone to the phoenixing activities, after the food and retail
industries. The difficulties faced by the regulators in the pursuance of the phoenix entities in
context of the role of the directors or the controlling minds are explained as follows. The first
and chief problem associated with the detection and control of the said activity is that the
involved directors are not easy to recognise or trace. It must be imperatively not that the
phoenixing activities are carried on by the directors or other controlling minds when the
conflicting arises in their minds to defraud firstly the creditors of the company and then the
misusing the assets of the organisations4. This is because such individuals are engaged in
more than one businesses globally and involved in creation of more than one phoenix
companies5. It is important to note that the real controlling minds of such companies take the
advantage of the separate identity principle of the corporate to hide behind the professionals
managing the affairs of the organisations. Thus, in order to reach to the real controlling minds
of such companies, regulators face the problems to go through the various kinds of contracts
such as the contracts of power of attorney in the entities, agency contracts between the
members, management contracts, and another similar kind chief documents of the enterprise.
Thus, the identification of the real controlling minds of such entities is a complex process and
3 "Race To The Bottom - Sham Contracting In Australia’S Construction Industry", Construction Forestry
Maritime Mining Energy Union, 2019, https://www.cfmmeu.org.au/policy-research/race-bottom-sham-
contracting-australia%E2%80%99s-construction-industry.
4 "Combating Illegal Phoenix Activity", Static.Treasury.Gov.Au, 2019,
https://static.treasury.gov.au/uploads/sites/1/2018/08/Exposure-Draft-EM-t313204.pdf.
5 "Illegal Phoenix Activity | ASIC - Australian Securities And Investments Commission", Asic.Gov.Au, 2019,
https://asic.gov.au/for-business/small-business/closing-a-small-business/illegal-phoenix-activity/.
CBD sites, the case is not the same in small building sites. One of the yet another chief
reasons for the construction industry being dominated by the phoenix activity is due to the
reasons of the sham contracting3. In this scenario, attempts are made to disguise the
employment relationship to be called as that of the independent contractor and that of the
client. Thus, the employment standards are undermined to allow the employers in the said
industry avoid the associated costs of the standard procedures such as annual leave, sick
leave, and redundancy payments. In addition, the said systems are engaged in the additional
ignorance of statutory obligations such as sick leave, annual leave, and redundancy payments.
Hence, the illegal employers get a competitive advantage in the form of shifting of burden
and responsibilities on the employees as compared to the legitimate employers.
Answer 4)
It is vital to note that the external administration of the construction and building industry
makes the said industries highly prone to the phoenixing activities, after the food and retail
industries. The difficulties faced by the regulators in the pursuance of the phoenix entities in
context of the role of the directors or the controlling minds are explained as follows. The first
and chief problem associated with the detection and control of the said activity is that the
involved directors are not easy to recognise or trace. It must be imperatively not that the
phoenixing activities are carried on by the directors or other controlling minds when the
conflicting arises in their minds to defraud firstly the creditors of the company and then the
misusing the assets of the organisations4. This is because such individuals are engaged in
more than one businesses globally and involved in creation of more than one phoenix
companies5. It is important to note that the real controlling minds of such companies take the
advantage of the separate identity principle of the corporate to hide behind the professionals
managing the affairs of the organisations. Thus, in order to reach to the real controlling minds
of such companies, regulators face the problems to go through the various kinds of contracts
such as the contracts of power of attorney in the entities, agency contracts between the
members, management contracts, and another similar kind chief documents of the enterprise.
Thus, the identification of the real controlling minds of such entities is a complex process and
3 "Race To The Bottom - Sham Contracting In Australia’S Construction Industry", Construction Forestry
Maritime Mining Energy Union, 2019, https://www.cfmmeu.org.au/policy-research/race-bottom-sham-
contracting-australia%E2%80%99s-construction-industry.
4 "Combating Illegal Phoenix Activity", Static.Treasury.Gov.Au, 2019,
https://static.treasury.gov.au/uploads/sites/1/2018/08/Exposure-Draft-EM-t313204.pdf.
5 "Illegal Phoenix Activity | ASIC - Australian Securities And Investments Commission", Asic.Gov.Au, 2019,
https://asic.gov.au/for-business/small-business/closing-a-small-business/illegal-phoenix-activity/.
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
various links needs to be established globally as well as locally to identify the true controlling
mind of such an enterprise.
The role of the directors in the said activities is further highlighted by the fact that the
individuals enjoy a number of concurrent directorships in various companies of various
industries to ensure that if the business of one company fails, the assets are easily transferred
to others. It is shocking to note that as per the reports of the Australian Securities and
Investments Commission, a whopping 11494 companies were identified to have the potential
to conduct the phoenix activity. The report additionally stated that a large number of directors
to the tune of about 2500 in numbers were identified to be qualifying the criteria of the
directors’ disqualification under the Corporations Act 2001 who were operating within 7000
companies6. The said identification was made under the proactive phoenix surveillance
program.
The role of the functioning of directors is further elaborated as follows. As per the current
regulations of the appointment and resignation of the directors in the Australian corporate
climate, there is no requisite of a prior lodging of resignation with the ASIC. The said
resignation is complete only by informing the company through a written notice of the same
within 28 days. Thus, the directors make use of the said practices for getting out of the sick
companies and further contend that their resignation was submitted timely and the same was
not forwarded by the company to the regulators. Thus, the ASIC does not have enough
information of the number of directors who have left the entity. In addition to the above, one
of the yet another feature of the director functioning in the company is that the removal of the
directors may take place by the passing a simple resolution of the members of the company,
subject to the conditions of the constitution of the company. Hence, this makes the way out
for the directors easy even when the company is left with no directors at all. Thus, as stated
above, there have been provided certain conditions in the law that works as safeguards for the
directors to move out of the companies and get saved from the incurring of the personal
liabilities.
Answer 5)
In almost all the reported instances of the phoenixing activities, there are few triggers or the
warning signs observed as described in detail as follows. One of the early signs that can be
stated is the act of the directors setting up a new company before the 12 months prior to the
6 "Quantifying Phoenix Activity: Incidence, Cost, Enforcement", Law.Unimelb.Edu.Au, 2019,
https://law.unimelb.edu.au/__data/assets/pdf_file/0004/2255350/Anderson,-Quantifying-Phoenix-Activity_Oct-
2015.pdf.
mind of such an enterprise.
The role of the directors in the said activities is further highlighted by the fact that the
individuals enjoy a number of concurrent directorships in various companies of various
industries to ensure that if the business of one company fails, the assets are easily transferred
to others. It is shocking to note that as per the reports of the Australian Securities and
Investments Commission, a whopping 11494 companies were identified to have the potential
to conduct the phoenix activity. The report additionally stated that a large number of directors
to the tune of about 2500 in numbers were identified to be qualifying the criteria of the
directors’ disqualification under the Corporations Act 2001 who were operating within 7000
companies6. The said identification was made under the proactive phoenix surveillance
program.
The role of the functioning of directors is further elaborated as follows. As per the current
regulations of the appointment and resignation of the directors in the Australian corporate
climate, there is no requisite of a prior lodging of resignation with the ASIC. The said
resignation is complete only by informing the company through a written notice of the same
within 28 days. Thus, the directors make use of the said practices for getting out of the sick
companies and further contend that their resignation was submitted timely and the same was
not forwarded by the company to the regulators. Thus, the ASIC does not have enough
information of the number of directors who have left the entity. In addition to the above, one
of the yet another feature of the director functioning in the company is that the removal of the
directors may take place by the passing a simple resolution of the members of the company,
subject to the conditions of the constitution of the company. Hence, this makes the way out
for the directors easy even when the company is left with no directors at all. Thus, as stated
above, there have been provided certain conditions in the law that works as safeguards for the
directors to move out of the companies and get saved from the incurring of the personal
liabilities.
Answer 5)
In almost all the reported instances of the phoenixing activities, there are few triggers or the
warning signs observed as described in detail as follows. One of the early signs that can be
stated is the act of the directors setting up a new company before the 12 months prior to the
6 "Quantifying Phoenix Activity: Incidence, Cost, Enforcement", Law.Unimelb.Edu.Au, 2019,
https://law.unimelb.edu.au/__data/assets/pdf_file/0004/2255350/Anderson,-Quantifying-Phoenix-Activity_Oct-
2015.pdf.
failing of the first company7. It is vital to note that these newly formed companies are likely
to fail in the first 12 months of their establishment itself, and as far as probability is
concerned, it is four times more than any other company, even without the relationship to the
failed company. Hence, a chain reaction can be observed. The yet another red flag that can be
stated is the unstable credit behaviour of such enterprises and the individuals involved
therein. This is in combination of the poor capital structure and the poor cash flow position of
an enterprise and is further fuelled up by the declining trade payment performance. Another
critical signs of warning can be observed from the debt and mortgaging records of the
enterprises from the banks and other financial institutions. It is important to note that the
change in the assets of the company is initially observed by the banks and financial
institutions only as these assets are subjected to creation of mortgage against the secured
loans. The yet another source of the early warning signs is the trade unions. The said groups
can assist the regulators when the timely awards and the superannuation payments are not
made to the members by such enterprises. Some of the other early warning signs are that the
same group of the directors or controllers manage or control the new company8.
Answer 6)
The recommendations and measures specified in the Black Economy Report are stated to be
as follows. The recommendations are mentioned in the various headings such as firstly under
the chapter 2 in relation to black economy. The recommendation is to lead a black economy
data project for ongoing monitoring of the black economy9. The same can be done through
the strengthening of the statistical measures, to enable comparison between time and
estimates. The yet another recommendations are stated in the chapter 3 of the report. An
economy wide cash payment limit is suggested that would stop the individuals from making
payment in cash in excess of $ 10000 by way of a single transaction. The yet another
recommendation is the mandatory payment of salary and wages into bank accounts of the
employees and not in cash. It has been further recommended to bring down the cost of the
debit card transactions for businesses. The said downing of the debit card rates would
encourage the businesses to move to the card payments which would additionally lower the
business costs and prices of the goods and services. Further it has been stated in the report
7 "Don't Get Stung By Phoenix Companies", Equifax Australia, 2019, https://www.equifax.com.au/business-
enterprise/insights/dont-get-stung-phoenix-companies.
8 "Understanding Illegal Phoenix Activity", Aicd.Companydirectors.Com.Au, 2019,
https://aicd.companydirectors.com.au/membership/the-boardroom-report/volume-13-issue-24/understanding-
illegal-phoenix-activity.
9 "Final Report | Treasury.Gov.Au", Treasury.Gov.Au, 2019, https://treasury.gov.au/review/black-economy-
taskforce/final-report.
to fail in the first 12 months of their establishment itself, and as far as probability is
concerned, it is four times more than any other company, even without the relationship to the
failed company. Hence, a chain reaction can be observed. The yet another red flag that can be
stated is the unstable credit behaviour of such enterprises and the individuals involved
therein. This is in combination of the poor capital structure and the poor cash flow position of
an enterprise and is further fuelled up by the declining trade payment performance. Another
critical signs of warning can be observed from the debt and mortgaging records of the
enterprises from the banks and other financial institutions. It is important to note that the
change in the assets of the company is initially observed by the banks and financial
institutions only as these assets are subjected to creation of mortgage against the secured
loans. The yet another source of the early warning signs is the trade unions. The said groups
can assist the regulators when the timely awards and the superannuation payments are not
made to the members by such enterprises. Some of the other early warning signs are that the
same group of the directors or controllers manage or control the new company8.
Answer 6)
The recommendations and measures specified in the Black Economy Report are stated to be
as follows. The recommendations are mentioned in the various headings such as firstly under
the chapter 2 in relation to black economy. The recommendation is to lead a black economy
data project for ongoing monitoring of the black economy9. The same can be done through
the strengthening of the statistical measures, to enable comparison between time and
estimates. The yet another recommendations are stated in the chapter 3 of the report. An
economy wide cash payment limit is suggested that would stop the individuals from making
payment in cash in excess of $ 10000 by way of a single transaction. The yet another
recommendation is the mandatory payment of salary and wages into bank accounts of the
employees and not in cash. It has been further recommended to bring down the cost of the
debit card transactions for businesses. The said downing of the debit card rates would
encourage the businesses to move to the card payments which would additionally lower the
business costs and prices of the goods and services. Further it has been stated in the report
7 "Don't Get Stung By Phoenix Companies", Equifax Australia, 2019, https://www.equifax.com.au/business-
enterprise/insights/dont-get-stung-phoenix-companies.
8 "Understanding Illegal Phoenix Activity", Aicd.Companydirectors.Com.Au, 2019,
https://aicd.companydirectors.com.au/membership/the-boardroom-report/volume-13-issue-24/understanding-
illegal-phoenix-activity.
9 "Final Report | Treasury.Gov.Au", Treasury.Gov.Au, 2019, https://treasury.gov.au/review/black-economy-
taskforce/final-report.
that ABN verification must be significant in case of the electronic payments. It has been
additionally recommended by the report that the businesses must be provided further
incentives to move to the non-cash business model so that each of the business transactions
are easily traceable. The further recommendations as stated in the chapter 4 of the report is in
context of the identity verification. It has been recommended by the report that a digital
identity regime must be followed that is fast and secure by the use of biometrically secured
digital credential. In addition it has been recommended to strengthening the integrity of the
ABN system in order to enhance the confidence of the stakeholders in the legitimacy and the
identity of Australian businesses. This involves practices like periodic renewals, timely
cancellations, better data matching and others. In addition to the above mentioned
recommendations, further recommendations of the report are on the lines of the enhancing the
reporting architecture for the new economy and an overhaul of incentives and deterrents.
Further, comprehensive recommendations have been made for the enforcement section.
These are, more effective prosecution processes, reversing of the onus of proof, transparency
of beneficial ownership, the introduction of new black economy offences and others.
Thus, as per the discussions conducted in the previous parts it can be stated that the report
comprehensively evaluates the issue of the black economy and phoenixing. It is imperative to
consider the role of the directors of such companies and the challenges faced by the
government in identification and probing of the same. The recommendations provided are
detailed in nature and cover various aspects of such businesses from reporting, identity
verification, cash payments and others. Hence, the recommendations are effective, and the
same must be implemented with the aid of thorough conjunction between the activities of
various agencies.
additionally recommended by the report that the businesses must be provided further
incentives to move to the non-cash business model so that each of the business transactions
are easily traceable. The further recommendations as stated in the chapter 4 of the report is in
context of the identity verification. It has been recommended by the report that a digital
identity regime must be followed that is fast and secure by the use of biometrically secured
digital credential. In addition it has been recommended to strengthening the integrity of the
ABN system in order to enhance the confidence of the stakeholders in the legitimacy and the
identity of Australian businesses. This involves practices like periodic renewals, timely
cancellations, better data matching and others. In addition to the above mentioned
recommendations, further recommendations of the report are on the lines of the enhancing the
reporting architecture for the new economy and an overhaul of incentives and deterrents.
Further, comprehensive recommendations have been made for the enforcement section.
These are, more effective prosecution processes, reversing of the onus of proof, transparency
of beneficial ownership, the introduction of new black economy offences and others.
Thus, as per the discussions conducted in the previous parts it can be stated that the report
comprehensively evaluates the issue of the black economy and phoenixing. It is imperative to
consider the role of the directors of such companies and the challenges faced by the
government in identification and probing of the same. The recommendations provided are
detailed in nature and cover various aspects of such businesses from reporting, identity
verification, cash payments and others. Hence, the recommendations are effective, and the
same must be implemented with the aid of thorough conjunction between the activities of
various agencies.
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Bibliography
"Combating Illegal Phoenix Activity". Static.Treasury.Gov.Au, 2019.
https://static.treasury.gov.au/uploads/sites/1/2018/08/Exposure-Draft-EM-t313204.pdf
"Don't Get Stung By Phoenix Companies". Equifax Australia, 2019.
https://www.equifax.com.au/business-enterprise/insights/dont-get-stung-phoenix-companies
"Final Report | Treasury.Gov.Au". Treasury.Gov.Au, 2019.
https://treasury.gov.au/review/black-economy-taskforce/final-report
"Illegal Phoenix Activity | ASIC - Australian Securities And Investments Commission".
Asic.Gov.Au, 2019. https://asic.gov.au/for-business/small-business/closing-a-small-business/
illegal-phoenix-activity/.
"Pricewaterhousecoopers, Phoenix Activity: Sizing The Problem And Matching Solutions".
Fairwork.Gov.Au, 2019. http://www.fairwork.gov.au/Publications/Research/Phoenix-
activity-report-sizing-the-problem-and-matching-solutions.pdf
"Quantifying Phoenix Activity: Incidence, Cost, Enforcement". Law.Unimelb.Edu.Au, 2019.
https://law.unimelb.edu.au/__data/assets/pdf_file/0004/2255350/Anderson,-Quantifying-
Phoenix-Activity_Oct-2015.pdf
"Race To The Bottom - Sham Contracting In Australia’S Construction Industry".
Construction Forestry Maritime Mining Energy Union, 2019.
https://www.cfmmeu.org.au/policy-research/race-bottom-sham-contracting-australia
%E2%80%99s-construction-industry
"Understanding Illegal Phoenix Activity". Aicd.Companydirectors.Com.Au, 2019.
https://aicd.companydirectors.com.au/membership/the-boardroom-report/volume-13-issue-
24/understanding-illegal-phoenix-activity
Anderson, Helen, Ann O' Connell, Ian Ramsay, Michelle Welsh, and Hannah Withers.
"Defining And Profiling Phoneix Activity". Monash.Edu, 2019.
https://www.monash.edu/__data/assets/pdf_file/0004/906043/defining-and-profiling-
phoenix-activity.pdf
"Combating Illegal Phoenix Activity". Static.Treasury.Gov.Au, 2019.
https://static.treasury.gov.au/uploads/sites/1/2018/08/Exposure-Draft-EM-t313204.pdf
"Don't Get Stung By Phoenix Companies". Equifax Australia, 2019.
https://www.equifax.com.au/business-enterprise/insights/dont-get-stung-phoenix-companies
"Final Report | Treasury.Gov.Au". Treasury.Gov.Au, 2019.
https://treasury.gov.au/review/black-economy-taskforce/final-report
"Illegal Phoenix Activity | ASIC - Australian Securities And Investments Commission".
Asic.Gov.Au, 2019. https://asic.gov.au/for-business/small-business/closing-a-small-business/
illegal-phoenix-activity/.
"Pricewaterhousecoopers, Phoenix Activity: Sizing The Problem And Matching Solutions".
Fairwork.Gov.Au, 2019. http://www.fairwork.gov.au/Publications/Research/Phoenix-
activity-report-sizing-the-problem-and-matching-solutions.pdf
"Quantifying Phoenix Activity: Incidence, Cost, Enforcement". Law.Unimelb.Edu.Au, 2019.
https://law.unimelb.edu.au/__data/assets/pdf_file/0004/2255350/Anderson,-Quantifying-
Phoenix-Activity_Oct-2015.pdf
"Race To The Bottom - Sham Contracting In Australia’S Construction Industry".
Construction Forestry Maritime Mining Energy Union, 2019.
https://www.cfmmeu.org.au/policy-research/race-bottom-sham-contracting-australia
%E2%80%99s-construction-industry
"Understanding Illegal Phoenix Activity". Aicd.Companydirectors.Com.Au, 2019.
https://aicd.companydirectors.com.au/membership/the-boardroom-report/volume-13-issue-
24/understanding-illegal-phoenix-activity
Anderson, Helen, Ann O' Connell, Ian Ramsay, Michelle Welsh, and Hannah Withers.
"Defining And Profiling Phoneix Activity". Monash.Edu, 2019.
https://www.monash.edu/__data/assets/pdf_file/0004/906043/defining-and-profiling-
phoenix-activity.pdf
1 out of 8
Related Documents
Your All-in-One AI-Powered Toolkit for Academic Success.
+13062052269
info@desklib.com
Available 24*7 on WhatsApp / Email
![[object Object]](/_next/static/media/star-bottom.7253800d.svg)
Unlock your academic potential
© 2024 | Zucol Services PVT LTD | All rights reserved.