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  • Dealing with GST fraud and evasion

    We have received extra resources to detect and deal with GST refund fraud. We are expanding our efforts to verify refunds by phoning or visiting businesses and contacting third parties to substantiate claims, including checking for omitted or incorrectly reported property sales and purchases.

    Identity crime is a community-wide issue and often facilitates GST fraud. We are increasing efforts to detect those using false, manipulated or stolen (or assumed false or stolen) identities to obtain GST refunds. We will:

    • check and verify GST registrations, including where people try to avoid registering, or register using false or stolen identities
    • contact taxpayers registering for GST to confirm their identity
    • continue to investigate suspect returns and conduct audits of high-risk refunds.

    Those who disregard the law, make fraudulent claims and deliberately avoid their GST obligations will face serious consequences, including interest, penalties, and, where appropriate, prosecution or referral to the Commonwealth Director of Public Prosecutions (CDPP). This includes taxpayers who:

    • deliberately do not register for GST when they are required to
    • intentionally fail to report, or consistently under-report, their tax obligations
    • collude with others to evade or avoid tax obligations
    • intentionally fail to meet their tax obligations
    • try to obtain a refund which they are not entitled to persistently, and repeatedly exploit bankruptcy.
      Last modified: 22 May 2017QC 23695