SFCT’s Strategy Against GST Refund Fraud in Financial Bulletin

• The Serious Financial Crime Taskforce is focusing on GST refund fraud
• Businesses are warned against using related-party structuring and false invoicing to manipulate tax systems
• Increasing cases of fraudulent high-value GST refunds are being observed, involving real and fictitious transactions
• Sophisticated arrangements are used to obscure transactions and disguise fraudulent activities for high-value GST refunds
• Industry networks are exploiting GST rules through complex related-party transactions
• Common fraudulent practices include false invoicing, misaligned GST accounting methods, duplicating GST credit claims, and claiming credits for non-existent purchases
• The property and construction sectors are particularly affected, but the issue is spreading across other sectors
• Fraudulent activities are often used to fund further business purchases or manage cash flow
• The Taskforce aims to maintain fairness by targeting these fraudulent behaviors
• Artificial arrangements to exploit GST rules are considered fraud and may lead to tax crimes
• The Taskforce is focusing on compliance actions and potential criminal investigations to address these issues

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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