Phoenixing by companies that deliberately go broke has a direct cost of up to $5bn a year on business, employees and government, including a whopping $3bn owed to other businesses, a PwC report says.
Phoenixing is the deliberate and systematic liquidation of a company to avoid liabilities such as tax and employee entitlements then restarting the business to continue making a profit through separate trading entities.
The estimates are contained in a PwC report, to be released on Monday, along with an announcement from the minister for revenue and services, Kelly ODwyer, that the tax office has audited 340 businesses for involvement in phoenix activity in the last financial year, resulting in it issuing tax bills of $270m.
The PwC r…
Read the full article at: https://www.theguardian.com/australia-news/2018/jul/16/australian-economy-losing-billions-due-to-companies-deliberately-going-broke-pwc-finds