iscover 4 more individuals convicted for claiming fraudulent GST refunds
RegulationEnforcement action under Operation Protego has resulted in another four individuals being sentenced to jail time for making illegitimate claims.
Four individuals were sentenced to jail time in July and August after they deliberately registered for ABNs, created fake businesses to submit business activity statements, and used these claims to obtain refunds from the ATO to which they were not entitled.
In a public statement, the ATO said the fraudulent claims were identified through its large-scale investigation into GST fraud, Operation Protego, and its work with cross-agency partners through the Serious Financial Crime Taskforce.
On 14 July, NSW woman Fiona Putland, also known as Funaki Toetuu, was sentenced in the Parramatta District Court to two years and three months' imprisonment after being charged with recklessly dealing with proceeds of crime of over $100,000 or more.
Over a 13-month period, the ATO said that 35 fraudulent business activity statements (BAS) were lodged, which resulted in $123,627.82 being paid to a bank account in Putland’s name.
"A further 11 BAS were lodged claiming $162,208 however, these payments were stopped by the ATO due to concerns of fraudulent activity," it said.
Putland was released on good behaviour and subject to supervision for a period of three years.
In late July, South Australian man Matthew Petherbridge was sentenced in the Adelaide District Court to 18 months' imprisonment for attempting to obtain more than $77,000 in GST refunds through fraudulent BAS lodgments.
"ATO compliance action recovered almost all funds paid and prevented a further $47,515 from being fraudulently obtained. He was ordered to repay the remaining outstanding amount," the Tax Office said.
He will serve two months of the sentence before being released from jail to be on good behaviour for two years.
Another South Australian woman, Leanne Connolly, was also sentenced in late July in the Adelaide District Court to 1 year, 10 months and 16 days’ imprisonment for obtaining over $153,430 and attempting to obtain a further $31,876 in fraudulent GST refunds.
"She will serve 2 months of the sentence and then be out of jail for a good behaviour period of 2 years, in addition to being ordered to repay $153,000," the ATO said.
On 5 August, NSW man Jacob Mitchell was sentenced in the Penrith District Court to two years and three months' imprisonment.
Mitchell claimed to be operating a construction business as a sole trader. He was sentenced for dealing with the proceeds of crime valued at $100,000 or more. In sentencing, the Court also took into account another offence of jointly dealing with proceeds of crime valued at $10,000 or more.
The first offence related to Mitchell dealing with the proceeds of 16 fraudulent BAS totalling $171,941.82. The second offence related to him dealing with the proceeds of a fraudulent BAS totalling $24,200. He will serve nine months’ imprisonment before being released on a bond.
The matters were prosecuted by the Office of the Director of Public Prosecutions 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 to protect the integrity of the tax and super system.
"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," said Snowden.
"These individuals have taken money from the community that would have otherwise been used to fund essential services. They now have a criminal conviction, which will damage their reputation, career prospects, access to financial services and ability to travel overseas – these are far-reaching consequences."
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