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The ATO, with the AFP, has secured an 18-month jail term (eight months non-parole) for a Melton man who defrauded the ATO of over $250,000 via false GST refund claims for a fictitious handyman business. He has also been ordered to pay $176,365 in reparation.
The case highlights the ATO’s focus on BAS and GST fraud. Even short-term or small-scale refund schemes can attract criminal prosecution and imprisonment.
Key takeaways for advisers:
- Ensure client GST refund claims reflect genuine business activity.
- Maintain robust documentation and records to support BAS lodgments.
- Advise clients on the serious consequences of fraudulent claims, including jail and financial penalties.
This serves as a reminder that the ATO treats GST refund fraud as serious financial crime, not a mere oversight.
Melbourne man jailed over fraudulent business activity statements | Australian Taxation Office
