Business Advisory

Much has been made of the recent spike in activity emerging from the Australian Taxation Office (ATO) in pursuing winding up action against small business debtors. That increased activity must serve as a warning to recalcitrant businesses. However, whilst the payment of taxes on time and for the full amount is always good business practice, if you find your company...

With rapidly advancing technological change, increasing business reliance on personal identity details and the growth in transient population movement, theft of personal information is becoming increasingly prevalent. As a direct result, over the past few years there has been an increased incidence of identity crime. Identity crime generates significant profits for offenders and causes considerable financial losses to the Australian...

"…In this world nothing can be said to be certain, except death and taxes." So said Benjamin Franklin in his famously quoted phrase regarding a fledgling American Constitution. However, fledgling relationships, be they domestic or commercial, rarely take into account such matters - particularly if by 'death' we think in a more expanded way about the 'end' of that relationship....

One of the best ways of attracting and retaining high-quality staff is to provide them with an ownership share of the business they're helping to develop. It creates an obvious incentive for them to throw their faculties behind a common cause in the hope of sharing its future success and reward. For technology start-ups with limited resources in particular, it...

"What's the address of the Company's registered office?", I asked a company director. His response, perhaps predictably, was to recite the trading address of his company's business. A repeat enquiry yielded no change. I asked if he knew the difference between the two: it was clear he did not. A company's registered office is more than just an anachronism of...

We all recall and cringe at the famous fast food chain mantra 'do you want fries with that?' The frustration often conjured by the notion of 'up-selling' belies the real problem - one of perception. A feeling that you're being sold something that you don't want or need,or is of little or no intrinsic value, is uncomfortable. This is no...

Regular readers of B2B will recall that in previous editions I have written about the ability of the Australian Taxation Office (ATO) to recover unpaid taxes in insolvency situations. Over the past two years the scope of those recovery powers has widened significantly and this has implications for company directors and insolvency practitioners alike. Many company directors still believe that...

It is that time of year again, when retail fervour increases along with spending expectations in what has become euphemistically known as the 'silly season'. Shoppers abound and the retail environment seems awash with cash. The pre-Christmas and traditional Boxing Day sales bring about the long-awaited cash 'rains' for retailers, big and small. But this visage hides what is all...

The tough business environment currently being experienced in Australia has undoubtedly led to a significant increase in the pressure and incentive to commit fraud and corruption. Often linked to poor governance, fraud and corruption is a serious risk for any entity. Indications are that dishonesty has an impact way beyond financial loss. Specifically, it undermines operational effectiveness and reliability and...

The Personal Property Securities Act 2009 (PPSA) continues to bite sectors of the business community that have historically had little need for engagement in formal business arrangements. Recently, this firm has been involved in a number of matters relating to rental, hire or bailment of goods to companies that have become insolvent. The unfortunate outcome for the providers of the...

It's a much-vexed question in modern commercial practice; "can I trade out of a debt laden entity through a new structure?" Those at the regulatory end of the business spectrum are often quick to quip "No! That's a phoenix." - as though the mere mention of the name 'phoenix' invokes an evil connotation equivalent only to being diagnosed with the...

The recent Senate Economics References Committee enquiry into the performance of ASIC has made recommendations to government in relation to Australia's insolvency laws regarding corporate restructure and reorganisation. The Committee took the view that greater provision should be made for access to measures to 'encourage and facilitate corporate turnarounds'. Particular reference was made in submissions to the Committee to US...

The recent further tightening of fiscal policy may see the ATO increase its activity level in the pursuit of business taxation debts. Where a company is the debtor, the ATO may issue a statutory demand, under the Corporations Act 2001, in seeking to recover the outstanding amount. In addition, the ATO may also issue a Director Penalty Notice ("DPN"). Unless...