Action against fraudulent phoenix activity, Business Law and Ethics

Assignment Help:

In the paper Action against Fraudulent Phoenix Activity: Proposals Paper, Treasury made a range of recommendations to amend director's liability provisions and taxation law.

Recommendations made by the proposal paper included:

-  removing the ability of directors engaged in fraudulent phoenix activity to avoid personal liability for PAYG(W) liabilities by placing the company into administration or liquidating the company

-  ensuring the promoter penalty regime is able to target those individuals promoting fraudulent phoenix activity

-  providing the Commission of Taxation with the discretion to require a company to provide an appropriate bond (supported by sufficient penalties) where it is reasonable to expect that the company would be unable to meet its tax obligations and/or engage in fraudulent phoenix activity

-  making directors personally liable for the debts of a liquidated company in circumstances where a 'new' company adopts the same or similar names as its previous incarnation

-  adopting the doctrine of inadequate capitalisation and allow the corporate veil to be lifted where a company sets up a subsidiary with insufficient capital to meet the debts that it could be reasonably expected to incur.


Related Discussions:- Action against fraudulent phoenix activity

What is the use of reprisal, What is the use of reprisal the use of rep...

What is the use of reprisal the use of reprisal should also be categorized under the heading of the lawful use of force. It is defined as a counter action taken by a state to p

Illustrate the case of environmental taxes, Illustrate the case of environm...

Illustrate the case of environmental taxes Consider the case of environmental taxes. There is clear evidence that International Environmental Agreements (IEAs) suffers from an

What objections and should be made, Defendant, Jones, is charged with sever...

Defendant, Jones, is charged with several counts of possession of drugs and weapons. In the early morning hours, a 911 caller reported: "I hear a loud disturbance from Joe Jones' a

Explain the principles of effective financial regulations, Question 1: ...

Question 1: a) Explain the four principles of effective financial regulations. b) Describe briefly the various regulatory tools used to achieve objectives of financ

Explain company limited by shares, QUESTION 1 Discuss the implication o...

QUESTION 1 Discuss the implication of F.O.B as a special trade term in international sales contract QUESTION 2 (a) Cliff is the sole director of ABC Construction Ltd, a

Describe in detail about the term - policy makers, Describe in detail abou...

Describe in detail about the - policy makers Elections are used to choose the policy makers, it is not the only mechanism. Since the authority to make decisions may be vested i

State the two alternatives of policy clustering, State the two alternatives...

State the two alternatives of Policy Clustering That combines an element from each of these first two alternatives. One might think of it as a set of processes characterized by

Meetings and resolutions, Meetings and Resolutions: Company General Me...

Meetings and Resolutions: Company General Meetings  These are held from time to time in order: (a)   to comply with statutory provisions which require certain general me

Practical consequences of incorporation, Practical Consequences of Incorpor...

Practical Consequences of Incorporation: In the course of delivering his judgment in Salomon's case Lord Halsbury stated that "once the company is incorporated, it must be tre

What is the neighbour rule, What is the neighbour rule? Duty of care:...

What is the neighbour rule? Duty of care: There is a duty of care by anyone to other where this can be reasonably foreseen which one’s action may injure another (negligen

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd