Australian tax inspectors are chasing after those who try to avoid tax, creditors and other payments by shifting money from indebted firms to new ones.

Australia’s tax authorities have continued a crackdown on a practice in which assets are shifted from an indebted business to a new firm to avoid paying creditors, taxes or employee benefits.

The practice, known as “illegal phoenix activity”, has prompted law enforcement agencies in Australia to carry out a nationwide series of investigations. In the latest case, the Australian Taxation Office has deployed 80 officers to carry out no-notice raids on sites in Victoria, ATO said in a statement. 

The latest visits continue action that took place last August, when 120 officers from ATO and the Australian Securities and Investment Commission visited 13 business and residential sites across two states. Last year’s visits were caused by complaints and intelligence gathered. 

“The legitimate insolvency industry has strong concerns about those who may be promoting and facilitating illegal phoenix activity. Unlike registered liquidators, these so-called ‘specialists’ operate in an unregulated environment and their behaviour undermines the whole industry,” said Michael Cranston, deputy commissioner for ATO.