Definitions of phoenix activity, Business Law and Ethics

Assignment Help:

phoenix activity involves "the evasion of tax and other liabilities, such as employee entitlements, through the deliberate, systematic and sometimes cyclic liquidation of related corporate trading entities". However, a range of other activities that can be considered deceptive are often referred to as phoenix activity.

Additionally, companies can liquidate and later honestly be revived. It is the recommendation of this report that the following definition of phoenix activity be used:

Phoenix activity is the deliberate and systematic liquidation of a corporate trading entity which occurs with the illegal or fraudulent intention to:

- avoid tax and other liabilities, such as employee entitlements

- continue the operation and profit taking of the business through another trading entity.

Liabilities may also include contractual or statutory obligations and civil or criminal proceedings.


Related Discussions:- Definitions of phoenix activity

Explain two scenarios of restraint of trade clause, Explain two scenarios i...

Explain two scenarios in which a restraint of trade clause would typically be used.

Criminal-justice system, Models for a criminal-justice system based on an e...

Models for a criminal-justice system based on an ethos of rehabilitation and reintegration ... have been regarded as idealistic but unworkable in the real world, except perhaps in

Articles of association, Articles of association: The memorandum of a ...

Articles of association: The memorandum of a company limited by shares or by guarantee must state that the liability of the company's members is limited. Hence the memorandum

Money lent - effect of ultra vires transaction, Money Lent: According ...

Money Lent: According to the decision in Re: David Payne & Co Ltd (23), a person lending money to a company is not bound to enquire as to why the company requires the money. H

Explain the elements necessary for formation of a contract, Question 1: ...

Question 1: List out and explain the elements necessary for the formation of a contract. Question 2: What are the advantages and disadvantages of choosing a company ov

What sort of bailment, Houghland, a passenger in one of McAnn's buses, had ...

Houghland, a passenger in one of McAnn's buses, had his suitcase stored in a luggage comp of the bus for a trip from Brisbane to Cairns. The suitcase was lost during the course of

Bailment – negotiable instrument, Bailment – Negotiable Instrument Wheth...

Bailment – Negotiable Instrument Whether Sir William Jones has specified the subsequent definition of bailment: like "A delivery of goods on trust on a contract, such express

safeguards interfere with law enforcement, The U.S. Constitution provides ...

The U.S. Constitution provides certain procedural safeguards to an accused, including protections from unreasonable searches and seizures, the right to an attorney and the right to

Explain the international law on kashmir dispute, Normal 0 fals...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

incorporation, Incorporation  Osborne's "Concise Law Dictionary" defi...

Incorporation  Osborne's "Concise Law Dictionary" defines incorporation as a "merging together to form a single whole; conferring legal personality upon an association of indi

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