SMEs are being asked to comment on the government’s proposal to combat phoenix activity, including the controversial idea to introduce a new Director Identification Number.
The Director Identification Number (DIN) received a decidedly lukewarm response from business owners, who questioned the need for yet another form of business identification when so many already exist.
“How is it that a non-government entity such as Today Tonight can successfully track down these phoenix operators yet ASIC, with access to substantial information from existing government databases, has had such difficulty,” asked one reader at the time.
“If they don’t have the attitude to pursue these criminals now, then will one more additional database and business overhead really improve their performance?”
Despite opposition to the DIN proposal, SMEs generally welcomed the government’s move to address illegal phoenix activity, which can see dodgy operators avoid paying their debts and cost innocent victims significant write downs.
In calling for feedback on the government’s suite of proposed measures, Minister for Revenue and Financial Services Kelly O’Dwyer said the changes are designed to aid regulators in taking action against “those who repeatedly misuse corporate structures and enable them to take stronger action against those entities and individuals”.
“The government is committed to helping the honest and diligent entrepreneurs who drive Australia’s productivity, but we won’t tolerate those who misuse the corporate framework for their own advantage,” she said.
The full proposal, and details of how to provide your feedback, is available on the Treasury website. Submissions can be made until Friday, 27 October 2017.