With many Australians eyeing end-of-financial-year tax refunds, the Australian Taxation Office (ATO) has issued a strong warning about the dangers of GST fraud.
In May, three individuals from Queensland were sentenced to jail after being found guilty of lodging false business activity statements (BAS) to claim fraudulent GST refunds.
Tiarn Payten Nutley, who falsely claimed nearly $50,000 in GST refunds using a fake beauty business, was sentenced to nine months in prison. Nutley used an existing ABN and allowed two friends to lodge six fraudulent BAS in her name. She also attempted to gain an additional $25,000. Although released on a $2000 recognisance order, she must be of good behaviour for 12 months.
Her accomplice, Skye Anne Hoek, fraudulently obtained more than $25,000 after registering for GST and filing two BAS with false information. Hoek received a three-month jail term without the option of early release.
Gregory Pimm ran a fake road freight business and fraudulently obtained over $265,000 in GST refunds. He also attempted to secure an additional $300,000. Pimm lodged 37 false BAS and manipulated sales figures, GST collected, and credits owed. He was sentenced to two years and six months in prison but will be eligible for release after six months on a $500 recognisance, with strict conditions including good behaviour and supervision for two years.
All three convictions were part of Operation Protego, which has taken action against over 57,000 alleged GST fraud offenders and led to 105 convictions.
Kath Anderson, Acting ATO Deputy Commissioner and head of the Serious Financial Crime Taskforce, emphasized the consequences of such fraud:
“Deliberate noncompliance has consequences. The ATO will actively pursue debts obtained through fraudulent GST funds using all available tools.”
She warned that those involved in fraud not only face repayment obligations and jail time, but long-term impacts including criminal records, loss of employment opportunities, and travel restrictions.
The ATO’s Counter Fraud Program leverages data analytics and intelligence sharing to detect fraud in near real-time, ensuring fraudulent activity is swiftly addressed.
