TURNBULL GOVERNMENT CRACKS DOWN ON PHOENIX DIRECTORS

Company directors will be issued with unique identification numbers as part of Federal Government reforms designed deter and penalise directors who engage in illegal phoenixing activity.

The reforms were announced this week by Minister for Revenue and Financial Services, Kelly O’Dwyer, who said illegal phoenixing – the stripping and transfer of assets from one company to another by individuals or entities to avoid paying liabilities – costs the economy up to $3.2 billion per year.

Minister O’Dwyer said the government’s package of reforms will include the introduction of a Director Identification Number (DIN), which will identify directors with a unique number. The DIN will interface with other government agencies and databases to allow regulators to map the relationships between individuals and entities and individuals and other people.

In addition to the DIN, Minister O’Dwyer said the government will consult on implementing a range of other measures to deter and disrupt the core behaviours of phoenix operators, including non-directors such as facilitators and advisers. Read more

James Harkness - Dynamic Business - 14 Sep 2017