On 10 May 2011, the Government announced the implementation of the election commitment to strengthen the tax law to counter fraudulent phoenix activity. Phoenix activity involves a company intentionally accumulating debts to improve cash flow or wealth and then liquidating to avoid paying the debt. The business is then continued as another corporate entity, controlled by the same person or group and free of their previous debts and liabilities. With effect from 1 July 2011, the director penalty regime will be extended and the Australian Taxation Office will be given greater powers. The Regulation Impact Statement was prepared by the Treasury and has been assessed as adequate by the Office of Best Practice Regulation.