‘You can almost register your dog as a company director’ - Media Release

‘YOU CAN ALMOST REGISTER YOUR DOG AS A COMPANY DIRECTOR’

Australian Tax Office Commissioner Chris Jordan this morning has confirmed the need for action on dodgy phoenix operators, who deliberately burn companies in an attempt to avoid their obligations to employees, taxpayers and honest businesses.

The Tax Commissioner told a Senate Estimates Committee:

“This is not a new issue. Phoenixing is a big problem, especially when you have these people that are unassociated with the principals. You can’t keep track.”

When speaking on how easy it is to become a company director in Australia, Mr Jordan told one Senator:

“I could appoint you as a company director without you even knowing and me then controlling the company”

The Tax Commissioner also noted that in other countries, proper identification checks are required for anyone wanting to become a director.

Illegal phoenix activity costs our economy billions of dollars annually. That’s why Labor last week announced measures to crack down on dodgy directors:

  • Requiring all company directors to obtain a unique Director Identification Number with a 100-point identification check.
  • Increasing penalties associated with phoenix activity
  • Introducing an objective test for transactions depriving employees of their entitlements
  • Clarifying the availability of compensation orders against accessories
  • Consulting on targeted integrity measures based on the recommendations of the Melbourne Law School / Monash Business School Phoenix Research Team recommendations.

Among the bodies that support Labor’s call for a Director Identification Number are:

  • The Productivity Commission
  • The Australian Institute of Company Directors
  • The Australian Small Business and Family Enterprise Ombudsman
  • The Australian Chamber of Commerce and Industry
  • Master Builders Australia
  • The Australian Council of Trade Unions
  • The Australian Restructuring Insolvency and Turnaround Association
  • The Phoenix Project (comprising experts from Melbourne University Law School and Monash University Business School)

As one expert said today:

“you can, almost literally, register your dog as a company director”

Why is the Turnbull Government letting dodgy directors off the leash?

TUESDAY, 30 MAY 2017


Showing 1 reaction

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  • commented 2017-06-01 16:04:18 +1000
    We need more than just an identification number!!! ATO & ASIC SHOULD LOOK @ COMPANIES THAT CHANGE THERE ABN NUMBER TOO!!! THIS IS SO EASY & SIMPLE, BUT ATO & ASIC DONT INVESTIGATE!!!!!
    To change the ABN of an existing company name can be as simple as making capital/lower case letters, Ltd/Limited or add (VIC), (AUST)!!!!!! There are many combinations changes to a ABN just with these simple changes which also can affect trust accounts & your super!!!!
    eg The Trust of or The Trustee of
    These changes can be done so fast which results in losing total control of finding a money trail or company!!!!!!
    I’ve found many ways how phoenixing scams hide and invest your money in real estate, immigration, money laundering, government grants, offshore investments, vehicles, liquidation/ insolvency (liquidated company/ new company investment) eg real estate property brought/sold/re-brought but still the same Phoenix scam or group of individuals!!!!!
    As for companies the dog as the director as usually people that CANT FIGHT BACK LIKE THE HOMELESS ETC ETC

    A TOTAL OVERHAUL OF REGUALTION & GOVERNING OF THE CORPARATIONS ACT 2001

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