In the wake of successfully prosecuting a Sydney man on charges relating to alleged ‘phoenix’ activities, the Australian Taxation Office (ATO) has revealed that it has raised more than $700 million in tax and penalties from the finalisation of more than 1,500 phoenix audits since 1998.
The ATO announced yesterday that the Sydney man, James Soong, had been sentenced to three years’ jail for failing to remit $6.7 million in tax instalments from the wages of employees in circumstances where one company was liquidated and the employees moved to a second company.
Commenting on the successful prosecution, Tax Commissioner Michael D’Ascenzo said the ATO had received additional funding in the 2009 Federal Budget to undertake additional phoenix casework over the next four years.
He said the money was being used to help the ATO identify and monitor people who got involved in such arrangements “so we can prevent them up-front from ripping off Australia’s tax and superannuation systems”.
“However, where we find serious cases of phoenix activity, we will prosecute those involved to the full extent of the law,” D’Ascenzo said.
