AFP and ATO catch $452,000 GST fraudster

Publisher
Australian Federal Police
Date published
November 2024

Relevant impacts: Government outcomes impact, Financial impact, Business impact.

A Victorian woman has been sentenced to 3 years and 6 months imprisonment, with a non-parole period of 20 months, for defrauding the Australian Taxation Office (ATO) of $452,000 and attempting to swindle a further $245,000 across a 15-month period. The value of the fraudulent GST and JobKeeper applications totalled almost $700,000.

A joint AFP and ATO Serious Financial Crime Taskforce (SFCT) investigation began in January 2020, after the ATO linked the woman to a number of suspicious claims, including fraudulent applications for GST refunds and JobKeeper grants for a horse stud farm business registered in December 2019.

Across a 15-month period, the woman lodged 26 fraudulent business activity statements that resulted in GST refunds totalling $423,479 paid by the ATO into a family member’s bank account.  The woman also lodged JobKeeper applications, made in the name of her ex-husband and son, despite neither individual running a business at the time.

An ATO audit later found no business activity was taking place and there was no entitlement to the GST refunds. The woman told AFP investigators the fraudulently obtained funds were used to buy and feed horses, operate her separate business and lent to other individuals.

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Related fraudster personas

The Reckless

The Reckless acts without care, responsibility or regard to the consequences of their actions by disregarding requirements, procedures, warnings or directions to gain personal benefits.

The Fabricator

The Fabricator invents or produces something that is false to dishonestly gain personal benefits.

The Impersonator

The Impersonator pretends they are another person or entity to dishonestly gain personal benefits.

The Deceiver

The Deceiver makes others believe something that is not true to dishonestly gain personal benefits.

Related countermeasures

Deterrence messaging

Providing clear statements and communications on entity practices to detect and respond to fraud can discourage fraudulent or corrupt activities. Staff and clients will be less able to rationalise or justify fraudulent or corrupt conduct when informed of the outcomes of fraud.

Clear and specific eligibility requirements

Clear eligibility requirements and only approve requests or claims that meet the criteria. This can include internal requests for staff access to systems or information.

Authenticate identity

Authenticate customer or third-party identities during each interaction to confirm the person owns the identity record they are trying to access.

Match data

Match data with the authoritative source and verify relevant details or supporting evidence. Services such as the Identity Matching Service can be used to verify identity credentials back to the authoritative source when the information is an Australian or state and territory government issued identity credential. This countermeasure is supported by the Office of the Australian Information Commissioner's Guidelines on data matching in Australian government administration.

Maintain accurate information and data

Whole-of-Government policies require us to have a high level of confidence in data when providing government services and payments. Create policies, rules, processes and systems that check, update and verify information and data where possible.

Reconcile records

Reconcile records to make sure that 2 sets of records (usually the balances of 2 accounts) match. Reconciling records and accounts can detect if something is different from what is standard, normal, or expected, which may indicate fraud.

Audits or reviews

Internal or external audits or reviews evaluate the process, purpose and outcome of activities. Clients, public officials or contractors can take advantage of weaknesses in government programs and systems to commit fraud, act corruptly, and avoid exposure.

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