A dozen arrest warrants have been executed across the country last week as the ATO continues to work with the AFP and other government agencies in cracking down on individuals suspected of defrauding the community by inventing fake businesses to claim false refunds.
As part of Operation Protego, the ATO-led Serious Financial Crime Taskforce (SFCT) launched a coordinated action on 15, 16 and 17 June in 12 locations across the states, which saw arrest warrants executed against 19 individuals suspected of being involved in GST fraud.
ATO Deputy Commissioner and SFCT Chief Will Day said these arrest warrants followed warnings last month for participants to come forward before stronger action was taken.
Despite these strong warnings from the ATO, Deputy Commissioner 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,” Deputy Commissioner Day said.
He also stated that the GST fraud crackdown was definitely not the last, as the agency is aware of the defrauders and will continue to take swift and decisive action against anyone taking part in financial crime.
“For those that have already committed this fraud, we know who you are, and you will need to repay the fake refunds you have obtained. You could face severe consequences, including jail if you do not speak to us before we knock on your door. Come forward now or face potentially tougher penalties,” he said.
During the raids, the ATO, along with the support of the Australian Federal Police (AFP), collected evidence, intelligence, and information to support its ongoing investigations. This activity follows the arrests of six individuals earlier this month in Victoria in connection to the fraud.
The GST 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.”
The SFCT was supported by Victoria Police, NSW Police, Qld Police Service, SA Police, Tasmania Police and WA Police in the operational activity.
Source: ATO. Content has been edited for style and length.