Today the Minister for Revenue and Financial Services, Kelly O'Dwyer, released a paper entitled ‘Combatting Illegal Phoenixing’ for public consultation.
The paper seeks views on the draft reforms to the corporations and tax laws proposed by the government earlier this month.
The reforms are designed to deter and disrupt the core behaviours of phoenix operators, while minimising any unintended impacts on legitimate businesses and honest restructuring.
“The government is committed to helping the honest and diligent entrepreneurs who drive Australia’s productivity, but we won’t tolerate those who misuse the corporate framework for their own advantage,” Ms O’Dwyer said.
The proposed changes will also assist regulators to better target action against those who repeatedly misuse corporate structures and enable them to take stronger action against those entities and individuals.
Professional accounting body Chartered Accountants Australia and New Zealand and mid-tier accounting firm BDO previously voiced their support for the reforms and indicated a desire to make a submission upon the release of the consultation paper.