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Authors: Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. This taxation legislation article was written for LAC Attorneys. For more data, please visit the LAC Legal professionals Taxation house page, or learn the original article “Taxation Legislation - Liquidation of Entities - Tax Consequences” here. For quite a lot of years, ASIC and the ATO have been tightening down on preparations which result in entities being liquidated, particularly corporations which try to avoid their liabilities by liquidating. When assets are moved from a failing company about to be liquidated to a new entity to avoid liabilities within the outdated entity, this arrangement is referred to as a phoenix association. Their effect is to defeat creditors from acquiring cost for outstanding debts and liabilities together with the ATO. Utilisation of assorted entities as a part of a tax avoidance scheme. Partaking in transaction(s) with the assistance of another entity to avoid their tax liability by liquidation of a number of entities.