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Media: Protect yourself from illegal phoenix activity
https://tv.ato.gov.au/ato-tv/media?v=bd1bdiuba5ynipOpens in a new window (Duration: 00:33)
About the Phoenix Taskforce
The Phoenix Taskforce was established in 2014 to detect, deter and disrupt illegal phoenixing.
We provide education and advice on how businesses can protect themselves and not break the law. We also work with specific industries and supply chains to close off opportunities.
Phoenix Taskforce agencies share information and use sophisticated data-matching tools to identify those promoting or engaging in illegal phoenix activity.
We take action against phoenix operators by:
- working together to disrupt their business model and make it financially unviable
- removing their ability to operate
- applying financial penalties
- prosecuting the worst offenders.
The most serious cases are referred to the Serious Financial Crime Taskforce.
There are civil and criminal offences for those who promote or engage in illegal phoenix activity. This includes penalties for removing assets to hide them from creditors when a company is wound up. ASIC and liquidators also have additional powers to recover assets for the benefit of employees and other creditors.
Where we suspect phoenix activity we can also:
- estimate liabilities for businesses that aren't meeting their lodgment obligations
- make directors personally liable under the director penalty regime for their company's liabilities
- retain refunds where a business has failed to provide an outstanding notification (didn't lodge).
You can report suspected illegal phoenix activity by making an anonymous tip-off.
We're verifying the identity of directors through the director identification numberOpens in a new window (director ID) initiative. This initiative is:
- helping to prevent the use of false and fraudulent director identities
- making it easier for government regulators to trace directors’ relationships with companies over time to help better identify and eliminate director involvement in unlawful activity.
Additional funding
Along with ASIC, we've received additional resources to help target facilitators and pre-insolvency advisers.
We're continuing to work with ASIC to establish better data sharing and improved analytics capability. This includes establishing a compliance program to target individuals who promote and facilitate illegal phoenix activity.
Phoenix Taskforce results
Up until 31 March 2024, we've raised more than $2.25 billion in liabilities from audits and reviews of illegal phoenix activities. We've also returned more than $1 billion to the community.
Achievements for 2022–23
In 2022–23, we:
- completed 2,967 audits and reviews
- collected more than $107 million in cash, contributing to government spending on essential services
- received more than 2,500 referrals of suspected illegal phoenix activity through the Tax Integrity Centre.
The Phoenix Taskforce also:
- banned or disqualified 5 directors from being involved in the management of a corporation
- shared 567 disclosures of information between agencies, helping identify those engaging in or promoting illegal phoenix activity.
Achievements since 2014
Since the Phoenix Taskforce was formed in 2014, we've:
- completed over 12,336 audits and reviews
- received more than 14,316 tip offs, and investigated more than 5,295 referrals of suspected illegal phoenix activity through the Tax Integrity Centre
- banned or disqualified more than 100 directors from being involved in the management of a corporation
- successfully prosecuted 27 criminal matters relating to illegal phoenix behaviour.
Phoenix Taskforce members
The Phoenix Taskforce is made up of key federal, state and territory government agencies.
The current members are:
- ACT Revenue OfficeOpens in a new window
- Attorney-General's Department South Australia, Consumer and Business ServicesOpens in a new window
- Australian Border ForceOpens in a new window
- Australian Competition Consumer CommissionOpens in a new window
- Australian Criminal Intelligence CommissionOpens in a new window
- Australian Federal PoliceOpens in a new window
- Australian Financial Security AuthorityOpens in a new window
- Australian Securities & Investments CommissionOpens in a new window
- Australian Taxation Office
- Australian Transaction Reports and Analysis CentreOpens in a new window
- Building Commission of NSWOpens in a new window
- Clean Energy RegulatorOpens in a new window
- Consumer Affairs VictoriaOpens in a new window
- Department of Agriculture, Water and Environment (DAWE)Opens in a new window
- Department of Employment and Workplace RelationsOpens in a new window
- Department of Health and Aged CareOpens in a new window
- Department of Industry, Innovation and ScienceOpens in a new window
- Department of Mines, Industry Regulation and SafetyOpens in a new window
- Department of Treasury and Finance SAOpens in a new window
- Department of Water and Environmental RegulationOpens in a new window
- Environment Protection Authority SAOpens in a new window
- Environment Protection Authority VictoriaOpens in a new window
- Fair Work OmbudsmanOpens in a new window
- Labour Hire Authority VictoriaOpens in a new window
- NSW Environment Protection AuthorityOpens in a new window
- NSW Long Service CorporationOpens in a new window
- NSW Fair TradingOpens in a new window
- NSW Police ForceOpens in a new window
- NSW State Insurance Regulatory AuthorityOpens in a new window
- Queensland Building and Construction CommissionOpens in a new window
- Queensland Department of Environment and ScienceOpens in a new window
- Queensland Office of Industrial RelationsOpens in a new window
- Queensland Revenue OfficeExternal Link
- Return to Work SAOpens in a new window
- Revenue NSWOpens in a new window
- Revenue WAOpens in a new window
- State Revenue Office TASOpens in a new window
- State Revenue Office VICOpens in a new window
- Territory Revenue Office NTOpens in a new window
- Victoria PoliceOpens in a new window
- Victorian Building AuthorityOpens in a new window
- Victorian Legal Services Board and CommissionerOpens in a new window
- Western Australia Police ForceOpens in a new window
- WorkCover QueenslandOpens in a new window
- WorkSafe ACTOpens in a new window.