Phoenix operator jailed for $6.7m tax fraud

Phoenix operator jailed for $6.7m tax fraud

Convicted phoenix company operator James Soong has been sentenced to three years in jail for failing to pay $6.7 million to the ATO.

The ATO said between October 1995 and July 1998 two companies operated by Soong deducted tax instalments totalling $6.7 million from employee wages. These funds were not paid to the ATO.

The case is an example of a 'phonenix' arrangement where a company is deliberately liquidated to avoid paying debts.

“Phoenix activities... take deliberate steps to disguise themselves from creditors such as the ATO [and] can be hard to identify and prosecute, so our main focus is stopping the activity before it occurs,” ATO tax commissioner Michael D'Ascenzo said.

Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags ATOcourt actiontax fraudJames Soongphoenix company

Show Comments