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‘Easy money’: regulators lax on a scam that costs the economy $5b a year

‘Easy money’: regulators lax on a scam that costs the economy $5b a year

Despite decades of debate, reviews and legal reforms, the tax avoidance used in phoenixing has never seemed so blatant.

The ATO and ASIC’s actions against phoenixers have been described as “a drop in the ocean” by experts.  Bethany Rae

Everyone knows who the crooks are,” says the veteran liquidator. “The problem is they never get caught.” The liquidator, speaking anonymously to talk candidly, is discussing tax fraud and phoenixing – the act of liquidating and rebirthing companies to avoid tax debts. On conservative estimates, this costs the economy $5 billion every year.

Despite decades of debate, reviews and legal reforms, the avoidance has never seemed so blatant.

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David Marin-Guzman
David Marin-GuzmanWorkplace correspondentDavid Marin-Guzman writes about industrial relations, workplace, policy and leadership from Sydney. Connect with David on Twitter. Email David at david.marin-guzman@afr.com

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Original URL: https://www.afr.com/property/commercial/easy-money-regulators-lax-on-a-scam-that-costs-the-economy-5b-a-year-20250227-p5lfkz