ATO Targets GST Fraud in Business Structuring Schemes

• The Australian Taxation Office is cautioning businesses against participating in related-party structuring arrangements to evade taxes
• The Serious Financial Crimes Taskforce has noticed a rise in fraudulent GST refund claims in various industries
• These schemes involve complex arrangements between connected parties to hide transactions and claim large, false GST refunds
• The taskforce has pinpointed groups exploiting GST regulations through shared intelligence and information with other agencies
• Deputy Commissioner John Ford urges business owners to heed these warnings
• The ATO has the tools and partnerships to detect and address sophisticated financial crimes
• Participants in these schemes use the fraudulent funds for further business investments or personal spending, harming compliant taxpayers
• The ATO aims to create fair competition by targeting these fraudulent activities
• Engaging in such schemes risks honest businesses and deprives essential community services of funding
• Businesses involved in such illegal activities are encouraged to voluntarily disclose their actions to the ATO

Source: ato.gov.au

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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