iscoverLast week, an AFP and ATO raid unearthed that a former KPMG manager had allegedly “orchestrated a large scale tax fraud”, raking in $1 million in fraudulent tax refunds.
KPMG responds to ‘large scale tax fraud’ conducted by former employee
11 August 2025
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7 minute read
As previously reported by Accountants Daily, a raid by the ATO and Australian Federal Police uncovered evidence of alleged “large scale tax fraud” carried out by a former KPMG employee.
KPMG said that it was assisting authorities with its inquiries concerning the former employee, adding that it had terminated his employment after the fraud came to light.
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“Earlier this year KPMG became aware that an employee had concealed his provision of unauthorised tax services, in a personal capacity, to individuals and entities that we understand were not KPMG clients,” a KPMG spokesperson said.
“KPMG promptly terminated the individual's employment and is assisting authorities with their inquiries.”
The former KPMG employee, who was not a registered tax agent, allegedly used the company’s credentials to access online ATO services and lodge tax returns he wasn’t authorised to on behalf of so-called “clients.” He redirected almost $1 million in tax refunds to bank accounts under his name.
In light of the alleged fraud, the ATO reminded taxpayers that they could search a tax professional’s registration status by visiting the Tax Practitioners Board’s online register.
“We urge all taxpayers to protect themselves by ensuring they only engage with registered tax professionals when seeking advice or lodging their returns,” Jade Hawkins, assistant commissioner at the ATO, said.
Hawkins added that she hoped the action taken against the former KPMG employee 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.”
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.”
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