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  • The cost of cheating the tax system

    While most individuals and businesses comply with their tax obligations, there are a small number who deliberately do the wrong thing.

    To maintain a level playing field for everyone, we are committed to preventing, detecting and dealing with this kind of behaviour.

    Recently, the director of a wholesale distribution company was sentenced to four years and six months jail for fraudulently obtaining and attempting to obtain nearly $600,000.

    Mr David Irvine lodged 39 business activity statements (BAS) between January 2012 and March 2015. By reporting fake export sales, he reduced the company’s goods and services tax (GST) payment obligations and fraudulently obtained $480,680 in refunds he wasn’t entitled to. Mr Irvine also failed to report any income on his personal tax returns for the 2009 to 2011 financial years, resulting in a tax shortfall of $116,056.

    We use sophisticated tools to review tax returns and identify risks. If we suspect something isn’t quite right, we may contact you for further information.

    We always do everything we can to help you comply, but for people who deliberately and repeatedly ignore their obligations, we take firm action.

    If you suspect someone of being involved in tax fraud see ato.gov.au/reportevasion for more information about what it is and how to report it.

    See also:

    Last modified: 31 May 2019QC 59146