Category: Articles

This article explains and investigates fraudulent phoenix activities in Australia, the nature of the problem and its size. Phoenix activity is prevalent in the area of unremitted employees’ superannuation guarantee contributions. The Commonwealth Government has increased its efforts to combat fraudulent phoenix activities however this article proposes new measures to combat fraudulent phoenix activities, specifically in relation to unremitted superannuation contributions and through improved online reporting relationships between the Australia Tax office and compliance of companies. This article also highlights the consequences of fraudulent phoenix activities whereby employees can lose their superannuation entitlements, creditors cannot recover their money and the government loses on non-payment of taxes, superannuation, workers’ compensation premiums and long service leave contributions. The effect of phoenix activity has further implications on the broader community, as more of these people will need to seek government assistance in the form of aged pensions when they retire.

This paper draws on findings from a research project examining dissent in High Court revenue law cases. The paper initially outlines the findings in relation to the differences in the incidence of dissent that can be identified between different High Courts led by different Chief Justices. Drawing upon research relating to the changing jurisprudence of the High Court, particularly during the latter part of the 20th Century, the paper then further explores whether this changing jurisprudence can be said to be reflected in a changed incidence of dissent in revenue cases before the High Court, concluding that there is arguably some evidence that when the Court adopts excessively narrow jurisprudence, or alternatively an activist jurisprudence, this may be reflected in an increased incidence of dissent in revenue cases.

The changes to the R&D tax concession in 2011 were touted as the biggest reform to business innovation policy in over a decade. Three years later, as part of the 2014 Federal Budget, a reduction in the concession rates was announced. While the most recent of the proposed changes are designed to align with the reduction in company tax rate, the Australian Federal Government also indicated that the gain to revenue from the reduction in the incentive scheme will be redirected by the Government to repair the Budget and fund policy priorities. The consequence is that the R&D concessions, while designed to encourage innovation, are clearly linked with the tax system.