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ATO Crackdown on False Invoicing: Penalties and Prosecutions

  • A recent media release states that the ATO is leading a financial taskforce with the AFP to combat a false invoicing scheme involving 1200 businesses
  • False invoicing involves businesses claiming tax deductions and GST credits for payments made to promoters who return cash less a fee
  • The ATO defines false invoicing as a scheme where one entity issues an invoice to another without providing goods or services
  • The ATO will deny tax deductions and GST credits for businesses using false invoicing arrangements and may impose penalties and criminal prosecutions
  • The best way to avoid penalties and criminal prosecution is to make an urgent voluntary disclosure
  • The ATO is identifying participants and will eventually catch up with all businesses involved in false invoicing
  • Seeking help from professionals with experience in this area can help resolve any issues with the ATO


Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.


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