ATO phoenix prosecution
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.
AUTHOR
Mike Taylor
Recommended for you
The month of April enjoyed four back-to-back weeks of growth in financial adviser numbers, with this past week seeing a net rise of five.
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With the election taking place on Saturday (3 May), Adviser Ratings examines how the two major parties could shape the advice industry in the future.
