There's lots happening for new dispute resolution services for small business people. The Small Business Commissioner (SBC) model is being rolled out across Australia. Explanation of developments.
We've received information from several different sources complaining about illegal workers and phoenix companies. These unrelated stories describe dubious operations in northern New South Wales and Queensland in the tourism and construction industries, involving specific overseas nationals. There's a fair bit of grassroots anger about what's happening.
Two (edited) stories read as follows:
A: "This group of 124 Phoenix companies who owe $100 mil to the tax department and scores of hundreds of thousands to Subbies, 40 are being investigated by the ATO yet they are still letting them trade.
A lot of the small companies are over Public servants not doing their jobs---ASIC or ATO---which lets these jokers stay in business.
We are contemplating an aggressive move to force the hands of all three levels of government to act re: more like "Government of the people, by the people, for the people".
As an ultimatum, in 12 months time if they have not acted or legislated against this rogue trader or other rogue traders we (20-50) are going to divert our GST payments to another regional infrastructure administrator to acquire land, build roads, hospitals, bolster law & order, dredge the waterways---ie fill in the service gaps left by Local, State and Federal Governments.
It is a little heavy handed, but we are sick of being screwed by just about everyone---ie Unions, Big Business, all levels of Government, employees, customers and now government condoned rogue traders."
B: "I am providing information to the Department of Fair Trading Qld, Queensland Transport, The Fair Work Ombudsman Qld and the OTSI (Office of Transport Safety Investigations NSW), in the fight to stop rogue overseas operators run inbound tour operators ruining the Tourist Industry within Australia.
One Inbound Tour Operator is a company run by a Ms [name omitted], known as [name omitted] Tours. I did work for this person for four months, last year, but left after what I believed to be unscrupulous work ethics. I currently have a claim against her with the [authority named].
Ms [name omitted] calls all her staff Independent Contractors, yet treats all her staff as employees. She has been using the ABNs to her advantage, as currently she has some 73 ABNs, with differing Company names and addresses [evidence supplied]. QANTAS only has 66 ABNs globally!!!
There will always be people trying to rort the system, but people like this only cause damage to our country, its reputation and its workers.
Ms [name omitted] lost her Accreditation in NSW in 2009 and is not allowed to have a business in her name ever again in that state. As well, she faces many fines according to the Office of Transport Safety Investigation.
I am curious if she has ever paid any tax with such an assortment of ABN companies?
I believe that this sort of operator should sound alarm bells to the authorities and her unethical business ethics only bring harm Australia and erode working conditions."
ICA comment: The ATO recently released a news alert about phoenix companies. (See below for contact details to make a report to the ATO).
ATO news release (extract):
Focus on phoenix operators (April 2010)
A phoenix activity occurs when a company places itself into voluntary liquidation with the intention of avoiding its creditors, including us. Like the mythical phoenix, operators and promoters of these schemes rise again and continue to operate their businesses through a new company structure.
Phoenix operators deliberately place their companies in an insolvent position and fraudulently avoid the tax they are liable to pay. We target directors of companies that have gone into liquidation leaving tax debts but have continued trading through another business entity.
Our increased focus on phoenix activities involves:
identifying and tracking phoenix operators through better use of systems and intelligence
contacting operators earlier about their behaviour
identifying tax agents with links to phoenix behaviour
developing strategies with other organisations, including ASIC and industry associations, to deter phoenix activity.
If you suspect someone of being a phoenix operator, let us know by:
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