Phoenixing companies, which costs the Australian economy billions of dollars a year, is too easy, cheap, lucrative and is largely invisible, according to a new report into the practice.
What is phoenixing?
- When a director strips cash and assets before hiding them and liquidating the company, then restarting
- Usually restarted under a different name, ‘like a phoenix from the flames’
- Done to deny creditors and ATO the money owed to them
The report, by academics from the University of Melbourne and Monash University, also urges the …
Read the full article at: http://www.abc.net.au/news/2017-02-24/phoenixing-companies-too-easy-in-australia/8301638