Illegal phoenixing is a practice where a business shuts down to avoid paying its debts and then reopens under a new name, operating as if nothing has happened. This article highlights the impact of this practice on lawful supermarkets and how it creates an uneven playing field, giving an unfair advantage to those engaging in illegal activities.
Supermarket operators often work with builders, electricians, and other contractors who may be operating illegally, which can negatively affect their business. Additionally, illegal companies that open accounts and leave supermarkets with bad debts can also harm them.
To tackle this issue, the Australian Taxation Office (ATO) is partnering with other government agencies to detect, deter, and disrupt illegal phoenix businesses, including those operating in the supermarket industry.
The ATO advises businesses to be aware of the warning signs of illegal phoenix activity, such as not receiving pay slips or super payments and receiving suspiciously low tenders or quotes for jobs. They also encourage businesses to do thorough background checks before entering into business relationships.
If you suspect a business of illegal phoenix behaviour, you can fill out a tip-off form, call 1800 060 062, or email [email protected].
In conclusion, the business industry should be fair and level for all participants. It is important to watch out for illegal phoenix activity and report it to the appropriate authorities to ensure a level playing field for all businesses.