Illegal phoenixing: ATO retaining refunds
The ATO now has broader powers to retain refunds in instances where taxpayers have outstanding notifications. While the exercise of this discretion will not be taken lightly, the Commissioner indicates that it will be used in circumstances where the taxpayers are identified as engaged in high-risk behaviour or those engaging in illegal phoenix activity. For taxpayers whose refunds are retained, the ATO will communicate to them the reasons why it was necessary and also outline the actions that can be taken to avoid it in the future.
