Media releases from the Government
Luxury spender jailed through Operation Protego
A 44-year-old woman has today been sentenced to 2 years and 8 months imprisonment for dealing with the proceeds of indictable crime, contrary to section 400.4(2) of the Criminal Code (Cth). They will be released on a Recognisance Release Order after serving 10 months, upon entering recognisance of $2,000 and to be of good behaviour for 2 years.
Thitikorn Thanawong registered for an Australian business number (ABN) for an aromatic massage oil manufacturing business. After providing an associate with her myGov login details, Ms Thanawong’s ABN was registered for GST. Between November 2021 and March 2022, nine business activity statements (BAS) were lodged to claim GST credits.
Ms Thanawong received $296,212 in GST refunds by lodging claims that contained false information. This money was then used to pay for designer branded items from Louis Vuitton, Saint Laurent and Gucci, ski holiday expenses, and direct transfers to associates including her previous partner.
In June 2022, an ATO audit showed no business-related transactions in Ms Thanawong’s bank accounts, and she was unable to produce any records to substantiate the claims in the activity statements. The ATO concluded that Ms Thanawong’s business did not exist, and she was not entitled to any GST credits.
Deputy Commissioner John Ford is reminding the community to be aware of GST fraud schemes, especially those advertised through social media.
‘If something seems too good to be true, then it most likely is. If you see someone advertising a quick way to get a loan from the ATO, this is fraud,’ Mr Ford said.
‘GST fraud takes away funds that could have been used to support essential community services such as healthcare, infrastructure and education.’
‘Engaging in this behaviour will not be tolerated, and we will ensure that those who choose to are held to account,’ Mr Ford said.
This is another sentencing resulting from the ATO’s extensive efforts under Operation Protego. This operation was initiated in response to widespread GST fraud. It includes compliance and debt recovery actions, as well as criminal investigations, leading to jail sentences for serious offenders.
This matter was prosecuted by the Office of the Director of Public Prosecutions (Cth) (CDPP) following a referral from the ATO.
As part of Operation Protego, the ATO has taken action against more than 57,000 alleged offenders, and those involved in this fraud have already been handed in the order of $300 million in penalties and interest.
As of 31 October 2024:
- 104 people have been arrested
- 72 people have been convicted with a range of sentencing outcomes, including jail terms of up to 7 years and 6 months and with orders made to restrain real property
- the ATO has finalised 60 investigations and referred 51 briefs of evidence to Commonwealth Director of Public Prosecutions.
The ATO also supports Operation Protego investigations which are led by local law enforcement agencies rather than the SFCT.
You can anonymously report suspected tax evasion or crime to us by making a tip-off online or call 1800 060 062.
Visit ato.gov.au/GSTrefundfraud for more information about Operation Protego.
Published 29 November 2024
https://www.ato.gov.au/media-centre/luxury-spender-jailed-through-operation-protego
Education order issued for incompetence
Following an investigation into the conduct of a registered tax agent company, it was found that its sole director and supervising agent had breached Code item 7 by failing to ensure that a tax agent service that was provided was provided competently.
In this case the Board Conduct Committee (BCC) found the tax agent had failed to ensure the preparation and lodgement of tax returns for clients were prepared accurately. This resulted in ATO compliance activities finding overclaimed or incorrect deductions that did not have a sufficient nexus to assessable income and could not be substantiated.
There was no reasonable care taken and no adequate processes in place to ensure:
- sufficient enquiries were made to correctly ascertain these clients’ state of affairs
- taxation laws were applied correctly to these clients’ circumstances, and
- statements made to the Commissioner of Taxation on behalf of these clients were true and correct.
Taking into account the nature of the misconduct the BCC decided to issue the tax agent with a written caution and an order to complete a course on the Tax Agent Services Act 2009. We want to work with registered tax practitioners to support compliance, protect the integrity of the tax system, and safeguard consumers. We will do this by applying a graduated level of administrative sanctions and educating tax practitioners wherever appropriate.
Published 3 October 2024
Egregious conduct results in company’s termination
We investigated a registered tax agent company based on the conduct of one of its directors, who was not a registered tax practitioner.
Based on the actions of this director, the company was found to have breached Code items 1 and 4, by:
- failing to act lawfully and honestly by using clients’ information on their system to create 51 false entities without their knowledge and authorisation
- lodging over 70 fraudulent business activity statements (BAS) to obtain GST refunds totalling $279,878.50 which was deposited into bank accounts which they controlled
- lodging a further 36 BAS resulting in GST refunds totalling $559,052 being stopped by the ATO.
The company’s co-director – a registered tax agent, was found to have breached Code item 7 by failing to:
- have adequate structures, processes and supervision and control arrangements in place to ensure accurate and competent tax services were provided; and
- supervise or conduct due diligence on services provided by a director.
The significance of this misconduct required both general and specific deterrence, therefore the company had their registration terminated with the maximum 5-year ban applied. While the tax agent was not involved with the fraud, they should have taken steps to ensure the services provided by the co-director of their company had been provided competently. We remind all tax practitioners that failures of judgement will be met by appropriate sanctions to protect the integrity of the tax profession and tax system. In this case, wilful blindness to fraudulent activity has not gone unpunished and the tax agent was sanctioned with an order to complete a course of education within 3 months.
Published 2 October 2024
More than $280,000 recovered for Newcastle workers
The Fair Work Ombudsman has recovered $281,729 for 305 underpaid food outlet employees in Newcastle, following surprise inspections.
Fair Work inspectors investigated 43 businesses in Newcastle’s fast food, restaurant and café sector, mostly ‘cheap eats’ venues. The inspections were prompted by intelligence from a range of sources, including anonymous reports.
The inspected food outlets were in suburbs including Broadmeadow, Cameron Park, Hamilton, Islington, Maryland, Mayfield and Merewether.
Published 13 June 2024
QLD women convicted for COVID-19 scheme fraudulent claims
The Australian Federal Police and the ATO issued a joint release regarding three Queensland women sentenced to prison for illegally attempting to access superannuation payments under a Federal Government COVID-19 scheme. The women were alleged to have used myGov accounts to claim to be other superannuation fund-holders.
Published 28 May 2024
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Victorian woman sentenced over GST fraud
A Victorian woman has been sentenced to 4 years imprisonment for obtaining almost $600,000 in fraudulent GST refunds.
A Victorian woman has been sentenced to 4 years imprisonment, with a non-parole period of 2 years and 4 months, after she claimed nearly $600,000 in GST refunds from 27 fraudulent business activity statements lodged, contrary to section 134.2(1) of the Criminal Code (Cth).
Tahra Wyntjes was sentenced for obtaining $599,349 in fraudulent GST refunds she was not entitled to and for attempting to obtain a further $259,976, which was stopped by ATO officers. A reparation order to the value of the amount obtained was granted. This debt to the Commonwealth will be actively pursued in addition to the jail time Ms Wyntjes will serve.
Ms Wyntjes registered for both an Australian Business Number and for GST in November 2021 for a residential cleaning business. Between November 2021 and March 2022, she lodged the fraudulent business activity statements (BAS), which ATO officers quickly noticed and began investigating.
After failing to respond to ATO officers following a review on her BAS lodgments and reviewing available evidence, it was concluded that Ms Wyntjes was not carrying on a genuine business and had submitted multiple false claims for GST.
Acting Deputy Commissioner Jade Hawkins welcomed the court’s decision which serves as a warning to those who deliberately try to defraud the government for their own personal gain.
‘Not only did this individual lodge fraudulent activity statements, but she also invented a fake business in order to claim GST refunds she was not entitled to.’
‘Our message remains clear. If you don’t run a business, you don’t need an ABN and you can’t claim GST refunds. This is fraud,’ Ms Hawkins said.
For those who may be tempted to take part in these criminal activities, the ATO has sophisticated risk models and technologies to detect and prevent fraud.
This is the latest result of extensive efforts under the Australian Taxation Office (ATO)–led investigation, Operation Protego, which was initiated in response to calculated GST fraud.
‘GST fraud is not a victimless crime – those who steal funds from the community that would otherwise be used for essential services will face severe consequences including jail sentences for serious offenders,’ Ms Hawkins said.
This matter was prosecuted by the Office of the Director of Public Prosecutions (Cth) (CDPP) following a referral from the ATO.
As part of Operation Protego, the ATO has taken action against more than 57,000 alleged offenders, and those involved in this fraud have already been handed in the order of $300 million in penalties and interest.
As of 30 September 2024:
- 104 people have been arrested.
- 59 people have been convicted with a range of sentencing outcomes, including jail terms of up to 7 years and 6 months and with orders made to restrain real property.
- The ATO has finalised 60 investigations and referred 51 briefs of evidence to Commonwealth Director of Public Prosecutions.
The ATO also supports Operation Protego investigations which are led by local law enforcement agencies rather than the SFCT.
Published 16 October 2024
https://www.ato.gov.au/media-centre/victorian-woman-sentenced-over-gst-fraud
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