ASIC have published the corporate insolvency statistics for November 2014. There were 631 insolvency appointments in November 2014 which is the lowest November number since 2004. It was a 22% decrease from November 2013 (830) and a 27% decrease from the average of the previous 5 Novembers (859).
I thought it was time for an update on the issue that triggers the most calls to our help line, company tax debt and specifically Director Penalty Notices. You’ll be aware that new laws were introduced in June 2012 giving the ATO very significant new powers to pursue directors personally. We knew the Tax Man had the shiny new big club – the question has been, whether he would use it. Here is an update on what we are seeing. Continue reading
I think that if I see another picture of Stuart Ariff next to an article on the insolvency profession I am going to scream. His picture has resurfaced many times in the main stream media over the last few weeks amid calls for “keeping the liquidators honest” and other calls to fix the insolvency profession. The underlying logic of trotting those pictures out is just misguided and could well lead to knee-jerk reactions. I’ll do another blog in the near future that examines the proposed Insolvency Law Reforms. But here I’ll just have a look at some issues regarding Stuart Ariff and post a small warning on over-regulation. Continue reading
ASIC has recently announced that it has used its powers to appoint liquidators to ten abandoned companies. ASIC did this to assist employees of those companies to gain access to the Fair Entitlements Guarantee (FEG). Employees usually are unaware that they can obtain ASIC’s help in this regard so let me explain the process. Continue reading
Let me throw at a proposition for you which is that, whilst Voluntary Administrations can be an excellent remedy for a company in financial difficulty, the ratio of successful VAs to total insolvencies is very low. They are also expensive and so, most often, of little practical use to a small to medium size business. I recently wrote an article here for Business Reporter about Voluntary Administrations and covered some of the problems – so I thought it worthwhile to review a few of the facts around VAs rather than just accept the hype you will receive elsewhere. Continue reading
ASIC recently published their annual report which summarises information from the formal Reports that liquidators lodge with ASIC during the year 2013-14. For those unfamiliar with the process, section 533 of the Corporations Act requires a liquidator to lodge a Report with ASIC if they think there may be offences committed or if the liquidator may pay a dividend of less than 50 cents in the dollar to unsecured creditors. So that mean the Report gets lodged in the vast majority of cases. ASIC then acts on some of those Reports and can provide some meaningful data. Continue reading
While I am on a roll with blogs on Members Voluntary Liquidation and the associated CGT Tax Benefits, I thought I’d expand upon the significant tax benefits that can be gained by using an MVL in conjunction with capital gains that are pre-CGT legislation. Continue reading
I explained few weeks ago in a blog that the main reason for doing a Members Voluntary Liquidation, rather than the much easier Deregistration, was to obtain pre-CGT Tax Benefits and Small Business CGT Concessions. I thought it worthwhile to explain in more detail the Small Business CGT Concessions and then we explain the significant benefits of a Members Voluntary Liquidation in getting the proceeds of an asset sale to the shareholders. Continue reading
If you have been reading this blog for a while, you will appreciate that we received a lot of calls at Dissolve from directors of companies in various stages of financial distress. But even though we see it regularly, we are still amazed at the lack of action shown by directors in certain situations. One of those is when a Statutory Demand has been received. To be fair, directors will have been receiving an escalating range of Demand letters, each of which has been designed to catch the eye. So maybe directors have become somewhat immune and fail to appreciate the full significance of a Statutory Demand.
The simple answer to the question of what to do if you get one is “do something” unless you want your company to end up in Official Liquidation. Continue reading
In it’s latest quarterly statistical update, AFSA have reported a total of 7,076 personal insolvency appointments in the quarter ending June 2014. This is the lowest quarterly figure since December 2005, and a 7% decrease from the same quarter in 2013.