AICD Submission to Treasury Proposals Paper on Action against Fraudulent Phoenix Activity

In this submission, AICD argues that there is sufficient regulation to curb phoenix activity such as the trading while insolvent provisions in the Corporations Law. There are also ASIC schemes like the Assetless Administration Fund that permit investigations and reports by liquidators that may identify enforcement opportunities. In any event, the law should always be tested through enforcement before additional law is introduced to curb phoenix activity. Whilst acknowledging such a mechanism is a blunt instrument, AICD suggests that director liability for unpaid PAYG deductions might be appropriate in certain circumstances given that the payments are in the nature of “trust monies”.

Treasury Proposals Paper Action against Fraudulent Phoenix activity