Alleged tax fraudster faces charges following search warrant: ATO

It was noted that the man was not a registered tax professional, and the consulting firm terminated his employment as soon as his behaviour was discovered.

Jade Hawkins, assistant commissioner, said she hoped the action taken against the individual acted as a warning to those considering fraudulent behaviour.

“We will not tolerate the actions of individuals in trusted positions who deliberately deceive people for their own personal gain,” she said.

“The ATO has extensive resources and capabilities specifically targeted to combatting fraud. We will continue to ensure those who seek to exploit the tax system are held to account.”

According to the ATO and its investigation, up until the detection of the alleged fraud, the man had been an employee at the consulting firm for 11 years, and the search of his Eastern suburbs’ property found accounting records and text messages related to his planning and submission of tax returns.

“It is alleged the individuals used his former company’s credentials to access the ATO's Online Services for Agents and Online Services for Business,” the ATO said.

“From there, the individual allegedly lodged tax returns on behalf of his so-called clients and redirected nearly $1 million in refunds to bank accounts under his name.”

From the man’s victims contacted during the investigation and audit, one said he believed the bank account was the firm’s trust account, and another was unaware of any ATO refunds having been claimed.

Hawkins said the ATO was committed to ensuring taxpayers' personal information was secure and safe and warned that taxpayers should lock their accounts if something looked or felt amiss.

In addition, it was encouraged that taxpayers check and ensure a tax professional was registered with the Tax Practitioner Board (TPB) by visiting the TPB register.

“We urge all taxpayers to protect themselves by ensuring they only engage with registered tax professionals when seeking advice or lodging their returns.”

Peter de Cure, TPB chair, said he supported the action taken by the ATO and AFP.

“Clients and the public should be aware of unregistered preparers who might lodge false and fraudulent tax returns. Tax practitioners, exercising reasonable care and appropriate supervision, need to protect their data, systems and clients from attack,” de Cure said.

“Clients and tax practitioners caught up in scams should review their affairs, if required, with independent advice. Tax practitioners who respond with openness and transparency will deliver a better outcome for their clients and their firm.”