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The ATO and AFP say they have acted against more than 53,000 people and prevented almost $2.5 billion in wrongful refunds.
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‘Many more arrests to come’ over billions in GST fraud
17 February 2023
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10 minute read
The ATO and AFP have warned that the 87 already arrested over billions in GST fraud are just the start and there are “many more to come”.
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Their joint action, dubbed Operation Protego, has issued warrants against 10 people suspected of promoting the fraud on social media and the ATO is telling a further 20,000 to come clean or face the consequences.
Assistant Treasurer Stephen Jones and ATO deputy commissioner and chief of the serious financial crime taskforce John Ford said GST fraud was costing taxpayers $1.7 billion and urged individuals not to be tempted by the promise of a large payoff.
“These actions send a strong message to people promoting this scheme that the ATO will find you and there will be serious consequences,” Mr Ford said during a joint press conference with Mr Jones this morning.
“For people getting involved or already involved, the message is to engage with the ATO before we take firm action.”
The Tax Office revealed it had already taken compliance action against more than 53,000 individuals and prevented about $2.5 billion in fraudulent GST refunds.
Two individuals had already been sentenced to jail time for their actions following their arrest in 2022.
“This follows 87 earlier arrests across the country, with many more to come,” the ATO said.
“Make no mistake, we are watching, and we have the ability to identify the people behind these posts, what they are doing is criminal and they will be dealt with the full force of the law.
“It’s not a matter of if you’ll get caught, but when, so don’t be tempted, if something looks too good to be true it probably is.”
The fraud was first detected in early 2022 and involved offenders inventing fake businesses, making ABN applications then submitting fictitious BAS to gain a false GST refund.
The ATO had already issued alerts to prevent people falling for the social media schemes.
“You need to check the facts — nobody is giving money away for free or offering loans that don’t need to be paid back,” said Mr Ford.
“Simply speaking, if you don’t operate a business you don’t need an ABN, and you shouldn’t lodge a BAS, this is fraud.”
AFP assistant commissioner Nigel Ryan said the fraudulent GST refunds were impacting the community more than the government.
“This fraud is not a crime against the government, it’s a crime against every single hard-working and honest Australian who pays their taxes and expects everyone else to do the same,” said Mr Ryan.
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