Be wary of untrustworthy advice recommending inappropriate or illegal behaviour
The ATO has warned taxpayers who may be thinking about pausing, changing or closing their business, due to the current economic conditions.
This could include illegal phoenix activity, where businesses intentionally remove their assets prior to winding up so that they can be used in a copy of the original business.
Red flags include:
- people the taxpayer doesn’t know cold calling with advice;
- unsolicited letters, emails or phone calls after the taxpayer has been through court action with a creditor;
- advice to transfer assets to a third party without payment;
- refusal to provide advice in writing;
- advice suggesting they have a sympathetic liquidator who will protect the taxpayer’s personal interests and assets;
- advice to withhold certain records from the bankruptcy trustee or liquidator, or provide incorrect information to authorities; and
- advice to deal with the liquidator or trustee on the taxpayer’s behalf.
The ATO instead recommends anyone thinking of pausing, changing or closing their business to contact a qualified professional, such as an accountant, lawyer, or registered liquidator.
Omnis Group are modern, forward-thinking Business Accountants in Perth, providing practical, proactive, real-world advice and support that goes beyond the basic preparation and lodgement of tax returns, to identify opportunities for improvement in your business. Call us in Subiaco Perth on 08 9380 3555.