In a recent press release, the ATO has asked employees of corporations to be on the look out for the tell tale signs of illegal phoenix activity and to report suspicious activity to the multi agency Phoenix Taskforce, which has been set up to identify and take action against those involved in the shady practice.

Some of those signs are said to include: –

• Employers pressuring employees to transition from ‘permanent’ to ‘casual’ positions;
• Frequent changes to the name of the corporate entity paying employees’ salary or wages; and
• The failure of employers to pay employees’ superannuation.

Also disclosed in the press release was the execution by the Phoenix Taskforce, led in this case by the ATO and the Australian Federal Police, of 6 search warrants on the Gold Coast as part of a criminal investigation targeting unpaid taxes and superannuation arising from suspected illegal phoenix activity.

For more information contact ERA Legal.