PwC plans to sell part of its business for $1. Here's why it's not that unusual

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PwC Australia is selling its government consultancy business for $1 after a tax scandal. But it's not the only business that has been sold for less than your morning coffee. Learn more:

Labor Senator Deborah O'Neill said it's an attempt to "phoenix" the company.Embattled consulting firm PwC Australiascandal involving government contractsThe nominal sale amount to Allegro Funds has been labelled by Labor senator Deborah O'Neill as a dubious attempt to "phoenix" the company and shift all of its problems over to new owners.

"We started to look at the ring fencing of this business to address the perceived conflicts, but after careful consideration of that we decided that did not go far enough. We made the difficult decision to divest our government business completely," she told a NSW parliamentary inquiry.It's not the only large business that has sold for $1, in what is known as 'peppercorn payments'.

ASIC describes illegal phoenixes as "when a new company, for little or no value, continues the business of an existing company that has been liquidated or otherwise abandoned to avoid paying outstanding debts, which can include taxes, creditors and employee entitlements." Ms Boucher bought it from Australian parent company Nine. At the time, Stuff was experiencing major uncertainty and diving advertising revenues at the start of the COVID-19 pandemic.

 

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