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

Discuss alternative dispute resolution, QUESTION 1 Nowadays, many peopl...

QUESTION 1 Nowadays, many people are opting for Alternative Dispute Resolution (ADR) as a means to settle commercial disputes due to its advantages. Discuss QUESTION 2

Spill over effects of monetary policy, Spill over Effects of Monetary Polic...

Spill over Effects of Monetary Policy There are three broad ways in which aggregate demand policies in one country can spillover to affect another country. These are the real i

Describe the cole inquiry recommendation, Q. Describe the Cole Inquiry reco...

Q. Describe the Cole Inquiry recommendation? In 2003 the Cole Inquiry made a range of recommendations to reform the building and construction industry. The Inquiry found that t

Companys objects, Companys objects: A company's objects are stated pur...

Companys objects: A company's objects are stated pursuant to the provisions of an Act of Parliament. It must therefore be deduced, for example, that a company whose object has

Gist of lord buckleys statement, Gist of Lord Buckleys statement: The ...

Gist of Lord Buckleys statement: The gist of Lord Buckley's statement, above, may be summarised as follows: The judges will not regard a transaction undertaken by a company as

Determine the term - cyclic majority voting, Determine the term - cyclic ma...

Determine the term - cyclic majority voting The cyclic majority voting, a problem first recognized by Marquis de Condorcet in 1785, the indeterminacy of voting process, has bee

Loans given for necessaries - void contracts, Loans Given for Necessaries -...

Loans Given for Necessaries - Void Contracts       It may happen that an infant asks someone to a loan for buy necessaries like school uniforms or textbooks.  Therefore the per

Guide - african customary law, Guide - African Customary Law Furth...

Guide - African Customary Law Further the courts are to be "guided" through African customary law.  Conversely this provision provides a judge discretion whenever to allow

Issue of additional preference shares, Issue of additional preference share...

Issue of additional preference shares: In the Bristol Aeroplane Case it was said of the issue of additional preference shares that:                    "the existing prefere

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

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