The Australian Tax Office is cracking down after discovering GST refund fraud. About 40 000 people received payments after submitting fraudulent business documents.
The scale of the fraud is considerable. The scam, which appears to have been widely transmitted on social media, amounted to about A$850 million.
ATO officials issued a statement warning claimants that their identities are known to authorities.
However the ATO deputy commissioner, Will Day, conceded that some applicants may “have unwittingly followed advice they have read online, claiming to help access a loan from the ATO”.
He explained that the ATO does not offer loans or financial support. “If you see something that sounds too good to be true, it probably is,” day said.
Authorities added that any persons found to have intentionally defrauded the ATO will face severe consequences.
As global tax offices move to advanced technology to monitor compliance, VAT/GST evasion is more likely to be detected and punished. And cross-border cooperation means that even sophisticated VAT/GST scams such as carousel fraud schemes are under the eye of law enforcement.
For most businesses, however, there’s a more mundanely compliance issue. Often, you simply get it wrong. Businesses are, quite reasonably, loath to maximise their VAT reclaim opportunities because they don’t have effective processes to ensure complete and fully accurate claims.
Without the right technology and expertise, erroneous tax receipts and expenses will continue to be submitted, putting a company at major risk.
Fortunately, there’s an effective end-to-end VAT/GST compliance and reclaim solution that saves time, makes compliance more cost-effective and maximises VAT reclaim opportunities. All while ensuring you are always 100% compliant.
Get in touch with VAT IT for a technology-driven VAT and GST recovery solution customised to meet your company’s strategic goals.
E-Invoicing in France: Updates on the B2B and B2C Mandate France is making steady progress on its digital invoicing reform, despite a shift in the official timeline. Originally planned for 2024, the mandatory B2B and B2C e-invoicing will now begin in September 2026, giving businesses more time to prepare, but also raising expectations for compliance. […]
Claiming VAT in the accounting industry Explore the reclaim opportunities available within the industry Within the accountancy industry, there is very little room for error. Every cent is accounted for, and financial visibility is a key priority. However, even within a sector that is tapped into the intricacies of value-added tax and its impact on […]
VAT vs Sales Tax: A practical business guide On the surface, VAT and sales tax are virtually the same. They’re both indirect taxes on the sale of goods or services. However, from a business and accounting perspective, there are important distinctions that affect compliance, cash flow and profit. For businesses entering new markets, understanding the […]
E -Invoicing in Egypt: A New Chapter in Digital Taxation Egypt is undergoing a digital evolution in the world of tax, and it’s reshaping the way businesses handle invoicing. At the heart of this transformation is the Egyptian Tax Authority’s (ETA) e-invoicing and e-reporting initiative, a broad-scope mandate that aims to close VAT gaps, increase […]
A pocket guide to reclaiming VAT from the UK Great – you’ve got stacks of VAT recovery opportunities waiting to be reclaimed. Except for one tiny problem: you do not know where to begin. We don’t blame you. VAT reclaim (especially from the UK) is no easy feat. Not only do you have to absolutely […]
E-Invoicing in France: Updates on the B2B and B2C Mandate France is making steady progress on its digital invoicing reform, despite a shift in the official timeline. Originally planned for 2024, the mandatory B2B and B2C e-invoicing will now begin in September 2026, giving businesses more time to prepare, but also raising expectations for compliance. […]
Claiming VAT in the accounting industry Explore the reclaim opportunities available within the industry Within the accountancy industry, there is very little room for error. Every cent is accounted for, and financial visibility is a key priority. However, even within a sector that is tapped into the intricacies of value-added tax and its impact on […]
VAT vs Sales Tax: A practical business guide On the surface, VAT and sales tax are virtually the same. They’re both indirect taxes on the sale of goods or services. However, from a business and accounting perspective, there are important distinctions that affect compliance, cash flow and profit. For businesses entering new markets, understanding the […]
E -Invoicing in Egypt: A New Chapter in Digital Taxation Egypt is undergoing a digital evolution in the world of tax, and it’s reshaping the way businesses handle invoicing. At the heart of this transformation is the Egyptian Tax Authority’s (ETA) e-invoicing and e-reporting initiative, a broad-scope mandate that aims to close VAT gaps, increase […]
A pocket guide to reclaiming VAT from the UK Great – you’ve got stacks of VAT recovery opportunities waiting to be reclaimed. Except for one tiny problem: you do not know where to begin. We don’t blame you. VAT reclaim (especially from the UK) is no easy feat. Not only do you have to absolutely […]
