By Peter Ryan
“We are concerned that the construction industry in particular seems to be a target for this type of activity and it really can be quite pernicious and cause very serious effects for the employees and the other creditors of companies that phoenix,” he added.
“We have found that the construction industry is a particular hotspot for phoenix company activity, and this affects not just the employees in the construction industry who might be affected directly because their superannuation entitlements might not be paid, or their leave entitlements might not be paid.
The Australian Tax Office (ATO) and the Australian Securities and Investments Commission (ASIC) are paying special attention to what’s known as ‘phoenix activity’ in the construction sector, where companies go into liquidation to avoid paying entitlements to their staff.
ASIC has commenced a wide ranging program aimed at the construction industry in which 6,000 smaller companies were targeted, and hundreds visited, to be reminded that heavy penalties apply for proven phoenix activity.
Read more here: ABC