It has been a common practice for business owners and directors to push on, no matter how bad or how hard things financially have become in their business.
Perhaps if you are in a bad position, it’s best to deal with the problem earlier rather than later as your options start to disappear.
Often, in the end it’s all about the theatre of your choice, how you behave and deal with your problem.
You may think that you can work through things and get them right, but now you may be called out by having the whistle blown on you by a staff member or a creditor. While your intentions are good, you may be seen as someone who is ignoring their business responsibilities and planning to rip the system off.
The ATO’s new whistle-blower hotline is the latest in the Federal Government’s arsenal in the war on illegal phoenixing, which is estimated to be costing the Australian economy up to $5.13 billion each year.
Scalps have already been claimed, as we reported last month. Last financial year, the ATO issued tax bills totalling more than $270-million resulting from over 340 reviews and audits of businesses involved in illegal phoenix activity.
From July 2017 to March 2018, there have been seven criminal prosecutions, with a further 34 individuals disqualified. Enforcement action has also been taken against registered liquidators who have assisted phoenix companies.
The way the hotline is currently set up allows a trade creditor, disgruntled employee or member of the wider business community – who may not be informed of the complete financial circumstances – to contact the ATO. Consequently, the ATO may not get all the facts and information on a company’s position.
If you have a problem, start getting advice as soon as you have the problem, -being the hero and battling on may cause yourself and others more harm. If you think you have a problem, give us a call at Your Business Angels and let’s review your position.
Don’t let someone else call you out!
