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.