GST fraudster sent back to jail after breaching parole

He was sentenced to two years in jail in September 2024 and was to be released after serving six months for dealing with the proceeds of crime (GST fraud).

Sheridan received and spent fraudulent GST funds totalling almost $378,000 after he provided his personal details to an individual who lodged 38 original and revised monthly business activity statements (BAS) on his behalf.

While Sheridan did not lodge the BAS or make the GST claims himself, the ATO said he was “wilfully blind” to the fact that the person to whom he provided his details would use them fraudulently.

As a result of these false claims, Sheridan received the GST refunds in a bank account in his name.

He spent the funds – including paying the person who lodged the BAS – in breach of subsection 400.4(3) of the Criminal Code, which prohibits dealing with the proceeds of crime.

The ATO, which referred the matter to the Office of the Director of Public Prosecutions, said in September 2024 that Sheridan received a two-year jail sentence for his actions, but would be released after serving six months.

However, after serving the required six months in jail before being released on parole, he breached the conditions of his release order multiple times.

As a result, Sheridan was returned to custody in June 2026 to serve the remainder of his sentence.

The ATO launched Operation Protego in April 2022, with a public announcement in May 2022. It was established to combat GST refund fraud that mushroomed in late 2021 after being promoted on social media platforms like TikTok.

The first raids were announced in June 2022, followed by further raids in July 2022, a crackdown on promoters in February 2023, and arrest activity in August 2023.

In August this year, the ATO said it was continuing its enforcement action, with four more individuals sentenced to significant jail time in July and August for fraudulently obtaining over $500,000 in illegitimate claims. They deliberately registered for ABNs, created fake businesses to submit BAS, and used these claims to obtain refunds from the ATO that they were not entitled to.

One individual claimed to be a fitness instructor, another a construction sole trader, and a third a labour hire provider. Instead, the ATO said their real identities will serve combined sentences of six years in jail, and they have been ordered to repay the stolen money to the Tax Office.

The Office of the Director of Public Prosecutions (CDPP) prosecuted these matters following referrals from the ATO.

Acting deputy commissioner Pennie Snowden said the ATO will continue to pursue criminal investigations and referrals for prosecution for those who purposely commit fraud against the community.

“If you don’t operate a business, you don’t need an ABN, and you should not lodge a BAS. This is fraud and a serious crime, with equally serious consequences,” Snowden said.

The ATO said it has taken action against more than 57,000 alleged offenders as part of Operation Protego, while those involved in the fraud have already been handed around $300 million in penalties and interest.

As at 30 June 2026, 178 people have been convicted, with sentencing outcomes ranging from jail terms of up to seven years and six months (reduced on appeal to six years and three months) to orders to restrain real property.

The ATO has finalised 64 investigations and referred 53 briefs of evidence to the CDPP.