For the last few months, we have been updating you about raids undertaken by the ASIC and the Federal Police in relation to an alleged Phoenix Company promoter.
Recently, the Court ordered that the assets of the phoenixer be frozen and a Provisional Liquidator appointed to companies under his effective control that appears to have included an accounting and legal practice.
You can read more here (http://murrayslegal.com.au/blog/2017/05/01/freezing-orders-against-alleged-phoenixers/) and also the Court judgment which is linked to the story.
In short, in making its orders, the Court found there to be a strong prima facie case that:
- the corporate defendants are systematically avoiding compliance with their taxation obligations, including failing to file income tax returns, pay income tax, report their goods and services tax (“GST”) and PAYG withholding amounts and pay their GST and PAYG withholding amounts;
- the corporate defendants are collectively operating a business of defrauding creditors involving “phoenix” activities for their clients;
- the corporate defendants are controlled by Mr Whiteman, who is the de facto director of all of them;
- the persons registered as the directors are “puppets”; and,
- two of the corporate defendants, A & S Services and AHW Solicitors, are phoenix companies themselves.