Phoenix Taskforce claws back $99m in FY24
The ATO-led taskforce has recovered $2.45 billion from illegal tax evasion schemes since 2014.
The cross-government Phoenix Taskforce clawed back $99 million in cash and disqualified eight directors for their role in illegal tax evasion schemes in the 2023-24 financial year, according to a recent ATO update.
It takes the total amount of funds recovered by the ATO-led taskforce to $2.45 billion and $1.08 billion returned to the community since it was established in 2014.
The taskforce seeks to combat phoenixing where companies are liquidated and wound up to avoid tax debts and other liabilities.
Assets are then transferred to a new company, leaving creditors of the old company out of pocket with no assets to recover.
The ATO said that when it suspected a business was engaging in phoenix activity, it worked to disrupt the scheme, remove its ability to operate, apply financial penalties and prosecute the worst offenders.
It could also estimate liabilities for businesses that failed to meet their lodgment obligations, make directors personally liable under the director penalty regime.
According to its recent update, the ATO received more than 3,400 referrals of suspected illegal phoenix activity through the Tax Integrity Centre and completed over 2,600 audits and reviews.
The taskforce banned eight directors and shared 226 disclosures of information between agencies to identify phoenix scheme participants.
The Phoenix Taskforce also includes members from agencies such as ASIC, ACCC, federal and state police. The most serious cases are referred to the Serious Financial Crime Taskforce.
In 2020, the government introduced anti-phoenixing reforms to tighten director accountability, introduce new civil and criminal penalties and give greater enforcement powers to ASIC.
“We've received additional resources to help target facilitators and pre-insolvency advisers,” the ATO said.
“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.”
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