iscover Woman sentenced to 2 years jail for $50k GST fraud
RegulationA woman who obtained over $50,000 in fraudulent GST refunds for a fake beauty services business has been sentenced to two years of imprisonment.
The ATO's ongoing investigation into large-scale GST fraud, Operation Protego, has resulted in the conviction of another individual involved in the GST fraud scheme.
Zoe Ward was sentenced in the Southport District Court to two years of imprisonment after fraudulently obtaining over $50,000 in GST refunds, contrary to subsection 135.1(1) of the Criminal Code.
In a recent update, the ATO said Ward obtained an Australian business number (ABN) and claimed she was a sole trader operating a business that offered beauty services or salon operations.
Between January and April 2022, Ward facilitated the lodgment of 5 false business activity statements (BAS). She received $54,821 in fraudulent GST refunds and attempted to obtain a further $14,239 but these payments were stopped by the ATO.
"A search warrant and audit concluded she was not carrying out a legitimate business, therefore she was not entitled to receive the GST refunds," the ATO said.
Ward was released on $1,000 recognisance to be of good behaviour for three years and was ordered to repay $52,409.15.
This latest conviction follows the sentencing of Aaron Hennig last month, who was sentenced to one year and two months in jail for fraudulent obtaining more than $72,068 and attempting to obtain a further $48,035 in fraudulent GST refunds.
In a public statement, the ATO said that Hennig had reactivated his ABN and registered for GST, claiming to run an antique furniture restoration business. He then lodged nine false BAS, allowing him to obtain the fraudulent GST refunds into his personal bank accounts.
"Thanks to strong partnerships between the ATO and financial institutions, Hennig’s bank identified the unusual deposits and referred the matter to the ATO," the Tax Office said.
"This prompted an ATO audit and search warrant, which was later executed at his residence."
Hennig is to be released after having served three months' imprisonment on a recognisance release order, to be of good behaviour for two years with 12 months' supervision, a security of $500, a non-parole period of three months, and a one-year post-release supervised good behaviour bond.
He has also been ordered to repay $52,817.
This follows a number of other convictions related to the GST fraud scheme, with a total of 21 individuals sentenced to jail for their involvement in the large-scale fraud over the past 14 months.
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Miranda Brownlee
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.
