ATO Cracks Down on GST Fraud

A dozen warrants were executed across the country this week as part of Operation Protego, as the ATO continues to work with the AFP and other Government agencies to crackdown on individuals suspected of defrauding the community by inventing fake businesses to claim false refunds.

ATO Deputy Commissioner and SFCT Chief Will Day said these warrants followed warnings last month for participants to come forward before stronger action was taken. However, despite these strong warnings, Mr Day said people were still attempting to engage in this fraud.

“The ATO has stopped more than a billion dollars in attempted fraud. This is a clear warning to individuals considering participating – you will not be successful, you are not anonymous, and you will face the consequences of your attempts.

The fraud involves offenders inventing fake businesses and Australian business number (ABN) applications, many in their own names, then submitting fictitious Business Activity Statements in an attempt to gain a false GST refund. In some cases, people have been encouraged to hand over their personal details to facilitators.

AFP Commander Economic, Corporate Crime and Corruption, Christopher Woods, said that the exploitation of Australia’s tax system has a serious impact on the community and is a matter that the AFP takes very seriously.

“Every dollar fraudulently obtained represents lost funds that could have been used to benefit everyday Australians in our community,” Commander Woods said.

“The AFP is committed to combatting financial crimes and we will continue to work diligently with our partners in the Serious Financial Crime Taskforce to disrupt and dismantle criminals seeking to cheat the tax system.”

Read more in this Smart Company article >>