Feedback on phoenix companies is being sought by Printing Industries as part of its industry response to the Federal Government's Proposals Paper examining the kind of actions that can be taken against fraudulent phoenix activity.
Printing Industries CEO Philip Andersen said a number of printing industry companies had fallen victim to phoenix activity in the past and unless the Federal Government implemented corrective action, more companies would be victims in the future.
“Through this consultation process we are undertaking the printing industry has a unique opportunity to present its view on this critical issue to the Federal Government," he said.
“I encourage all industry members with views and proposals to forward them to our National Manager for Policy and Government Affairs, Hagop Tchamkertenian."
Mr Tchamkertenian said that whilst the Proposals Paper focuses on fraudulent phoenix activities and their impact on tax revenue and employee entitlements, the opportunity existed to cite other impacts, such as non-payments, arising from firm-to-firm supplies.
“Printing Industries has spoken to the Treasury people responsible for the Proposals Paper and highlighted the importance of considering other impacts as well," he said.
”The feedback was positive. The Government is interested in hearing about other impacts. This will allow our members to present their views and recommendations for action directly to the Government via our co-ordinated industry response.
Members with examples of past or current fraudulent phoenix activity as well as those with proposals and suggestions should forward them hagop@printnet.com.au or contact Hagop directly on 0414 953 271.
The Proposals Paper can be downloaded via the following link Action against fraudulent phoenix activity.
Comments to Printing Industries should be provided by close of business Wednesday 13 January 2010.
What is phoenix activity?
Phoenix activity is typically associated with directors who transfer the assets of an indebted company into a new company of which they are also directors. The director then places the initial company into administration or liquidation with no assets to pay creditors, meanwhile continuing the business using the new company structure.
Printing Industries Association of Australia
www.printnet.com.au
