Construction
company
Construction
company
ATO gives the Company tax credits on its business inputs.
Company buys ‘inputs’ – materials, equipment, etc.
1.
2.
Construction
company
Construction
company
4a.
A legitimate company will pay tax on the sale of its units to the ATO.
Buyers buy units, apartments and other buildings from the company.
3.
Dodgy
company
Shell
company
No tax is paid, buyers cannot arrange repairs, and the tax-
payer foots the bill for the phoenixing.
A dodgy company instead phoenixes, avoiding paying tax and transferring all its assets to a shell company.
4b.
5.
Construction
company
Construction
company
Construction
company
Buyers buy units, apartments and other buildings from the company.
ATO gives the Company tax credits on its business inputs.
Company buys ‘inputs’ – materials, equipment, etc.
1.
2.
3.
Dodgy
company
Construction
company
Shell
company
4a.
No tax is paid, buyers cannot arrange repairs, and the tax-
payer foots the bill for the phoenixing.
A dodgy company instead phoenixes, avoiding paying tax and transferring all its assets to a shell company.
A legitimate company will pay tax on the sale of its units to the ATO.
4b.
5.