Liquidating company avoid tax
For 6 months he had been paying contractors late and had accrued ,000 in overdue payments.
His costs had blown out on major projects and he was unable to pay his suppliers, contractors, employees, loans and taxes.
Joe questioned the legality of the restructure, but Carlos assured him it was fine.
Carlos then appointed Joe as director of the new company and got an associate to value the assets of the old company for an amount well-below market value.
As Joe, Carlos and the liquidators had dishonestly removed the assets of the company they had no assets to sell and creditors, employees and the ATO had no means of being paid outstanding debts.They may be subjected to the same penalties if it is proved they aided, abetted, counselled or procured a director to engage in illegal phoenix activity.