Federal Police, ATO raids over GST fraud

Operation Protego has seen a raft of enforcement activity undertaken across the country by the ATO-led Serious Financial Crime Taskforce, including the execution of search warrants and issuing of warning letters.

The latest warrants were executed against individuals suspected of promoting the fraud including on social media.

“These actions send a strong message to people promoting this scheme that the ATO will find you, and there will be serious consequences,” ATO Deputy Commissioner and chief of the Serious Financial Crime Taskforce (SFCT) John Ford said.

“For people getting involved or already involved, the message is engage with the ATO before we take firm action.”

On 31 December 2022, the ATO has taken compliance action on more than 53,000 clients and stopped approximately $2.5 billion in fraudulent GST refunds from being paid to individuals seeking to defraud the system.

Two individuals have been sentenced to jail time for their crimes so far, following their arrest in 2022.

This followed 87 earlier arrests across the country, with many more to come. The ATO has commenced writing to more than 20,000 individuals involved in the fraud, warning them of the serious consequences coming their way unless they come forward and repay the money they have defrauded.

The fraud was first detected in early 2022 and involves offenders inventing fake businesses and Australian business number (ABN) applications, then submitting fictitious business activity statements in an attempt to gain a false GST refund.

Promoters of fraud use social media and other channels to recruit participants.

The ATO has been issuing warnings to the community to be on the lookout for fraud schemes that are being promoted through social media and other channels.

“You need to check the facts — nobody is giving money away for free or offering loans that don’t need to be paid back. 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,” Mr Ford said.