What is phoenix activity, Corporate Finance

Assignment Help:

Q. What is phoenix activity?

Phoenix activity is "the evasion of tax and other liabilities, such as employee entitlements, through the deliberate, systematic and sometimes cyclic liquidation of related corporate trading entities".2

In some instances of phoenix activity only one entity within a group of companies will be liquidated, whereas in other cases the corporate group covering the whole business will be stripped of assets and liquidated. Due to the diversity of phoenix activity, it is difficult to precisely define.

Consultations with stakeholders identified a range of alternative and complementary approaches to defining phoenix activity. Based on a range of considerations, the following definition has been developed:

"Phoenix activity is the deliberate and systematic liquidation of a corporate trading entity which occurs with the fraudulent or illegal intention to:

- avoid tax and other liabilities, such as employee entitlements

- continue the operation and profit taking of the business through another trading entity."


Related Discussions:- What is phoenix activity

Consultancy Firm, You work for a major consultancy firms in corporate finan...

You work for a major consultancy firms in corporate finance. Your firm has been approached by one of its major clients to assist them in solving a problem that they have. You have

Calculate the current price, a) Cookie Monster Inc. (a $15 billion snack fo...

a) Cookie Monster Inc. (a $15 billion snack food company) is considering acquiring Keebler Elves but is unsure of how much is should be willing to pay for the target firm.  At the

Forecasting demand, The problem considered is that of forecasting demand fo...

The problem considered is that of forecasting demand for single-period products before the period starts. We study this problem for the case of a mail order apparel company that ne

Top - down methods, For a large set of SKUs and in two successive selling s...

For a large set of SKUs and in two successive selling seasons, we have compared the accuracy of three quantitative forecasting methods based on advance (preview) demand information

How garch modelling is related to hedging, Question: σ 2 t = β 0 + ...

Question: σ 2 t = β 0 + β 1 σ 2 t - 1 + λ 1 ε 2 t -1 (a) Interpret parameter 1 and 1 in model (1) and derive the long-term unconditional variance. (b) What

INVESTMENT DECISION, You are a ceo of a sotware firm that has limited acces...

You are a ceo of a sotware firm that has limited access to debt equity markets. The average return on last year projects is 28 % . and cost of capital is 12%. would npv pr Irr be

Financial Analysis, Prepare a portfolio of analytical reference materials i...

Prepare a portfolio of analytical reference materials including the financial reports for at least five years. This is your analytical permanent file for the chosen company. (ii) M

Method for improving the accuracy of option price, Assignment Describe in d...

Assignment Describe in detail one method for improving the accuracy of option prices and the first two 'Greeks', Delta and Gamma, calculated using the binomial tree. You should giv

Estimate the dollar-equivalent or adjusted rate of return, In January 2009 ...

In January 2009 you bought a German stock portfolio for 6,000,000 Euros and sold it in December 2009 for 7,000,000 Euros.  Assume that over the same period the dollar's exchange ra

Mmtheory, the departure from Modigliani-Miller proposition using the agency...

the departure from Modigliani-Miller proposition using the agency cost and information asymmetry theory of capital structure

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd