On 5 February 2020 the Treasury Laws Amendment (Combating Illegal Phoenixing) Bill 2019 was passed by both Houses of Parliament. The Act is awaiting Royal Assent. Background.
The Act amends the Corporations Act 2001 to create phoenixing offences and other rules about property transfers to defeat creditors.
It also prohibits directors from improperly backdating resignations or ceasing to be director when this could leave a company with no director and allows the Commissioner of Taxation to collect estimates of anticipated goods and services tax (GST) liabilities and make company directors personally liable for their company’s GST liabilities in certain circumstances.
The Act will commence on the day after Royal Assent except for the tax provisions which will commence on the 1 April or 1 July next following Assent.
The Act’s effectiveness will be reviewed after five years.
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Author: David Jacobson
Principal, Bright Corporate Law
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The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.