Wise Accounting Podcast (wap)

I wanted to start with something I am passionate about, and glad to see the ATO cracking down on, and that is essentially widening the net in regards to illegal phoenix activities. For those of you that do not know, Phoenixing is essentially abandoning a company and then recommencing a similar company with similar stakeholders, but essentially your tax liabilities from the former company are neglected, and abandoned. Hence the term Phoenix, it is essentially a company that rises form the ashes of another. The benefit of a company is that the directors are protected by the corporate veil and generally are not personally liable for the liabilities of the company. This has changed in recent years, and the recently enacted Treasury Laws Amendment (combating Illegal Phoenixing) Act 2020 takes this further still. What is new in this is act, which is already in effect, is that there are new phoenix offences, which essentially serve to prohibit creditor-defeating actions. This essentially prohibits any transfer of co