An activity called Illegal phoenix activity involves the establishment of a new company to continue the business of an existing company but the employer deliberately liquidates to avoid paying debts, including tax credits, money owed by creditors, and benefits paid to employees.
When this activity is repeated several times for the purpose of depriving the creditors and employees of the existing company, this activity is considered illegal.
This illegal activity affects the business community, workers, contractors, government and the environment.
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