AUSTRALIA — Four individuals, including two former employees of the Australian Taxation Office (ATO), have been sentenced for their roles in a massive GST fraud scheme that gained notoriety on TikTok and other social media platforms.
The fraud involved creating fake Australian Business Numbers (ABNs) for non-existent businesses and lodging false Business Activity Statements (BAS) to claim fraudulent GST refunds. The scam first emerged in 2020 and surged in popularity in 2021 following promotion by social media influencers.
More than 57,000 people reportedly took part, resulting in an estimated $2 billion in losses to the Commonwealth. The ATO responded with Operation Protego, a crackdown that has led to the recovery of approximately $300 million in penalties and interest, and the conviction of 122 people to date.
Among those recently sentenced were:
Menuwarage Ranasinghe, a former ATO employee, who received a four-month prison sentence for three counts of obtaining financial advantage by deception. He was released immediately on a good behaviour bond and ordered to pay a $500 security. Ranasinghe fraudulently obtained over $16,000 by lodging false BAS.
Baby Dee Zearwie, a former ATO contractor, was sentenced to eight months imprisonment for obtaining nearly $90,000 in fake GST refunds and ordered to make reparations of nearly $24,000.
Two other offenders without tax office ties received prison terms:
Kim Orense was sentenced to 18 months in Penrith District Court for dealing with proceeds of crime after lodging 14 fake BAS and securing nearly $215,000 in GST refunds linked to a bogus house repair business.
Abigail Ussher, who lodged fraudulent BAS for a fake crime scene cleaning business, received a 12-month sentence and will be released after five months, subject to good behaviour.
All four were prosecuted by the Office of the Director of Public Prosecutions following ATO referrals under Operation Protego.
This crackdown highlights the risks of fraudulent schemes promoted on social media and the ATO’s commitment to combating tax fraud.
