Operation Meld detectives and Australian Tax Office agents in joint task-force targeting crime gangs for tax fraud

Young criminals embroiled in Adelaide’s gang war involving people of African heritage are being investigated on allegations of tax fraud, authorities have revealed.

Operation Meld: Members of youth gangs 051 and KBS have been flaunting cash, wearing Gucci bags and designer clothing.

Young criminals embroiled in Adelaide’s gang war involving people of African heritage are being investigated on allegations of tax fraud, authorities have revealed.

SA Police and the Australian Taxation Office have formed a joint task-force to investigate claims gang members are “obtaining a financial advantage by deception”.

While senior police declined to provide details on the ongoing investigation linked to Operation Meld, authorities are believed to be focusing inquiries on GST fraud.

Up to 20 detectives and federal officers are involved in the ongoing inquiry, which is part of wider efforts to combat mounting criminal activities of feuding youths.

Operation Meld investigations have targeted African-related gang crime following a series of violent public brawls and stabbings in 2021 and 2022.

Investigations have now widened to tax fraud, which is believed to centre on gang members using fake identifications to create shell companies.

Operation Meld gang wars between 051 and KBS and interstate gang BDK. The street gangs are young people of African heritage. Artwork: Steven Grice,

While it is unclear what illegal activities are being funded, young criminals have armed themselves with guns and are involved in drug trafficking.

It is understood identities – taken from friends or relatives living overseas – are then used to create an invalid Australian Business Number.

The fraud is said to continue when the ABN – a unique 11 digit number that identifies a business to the government and community – is used to lodge a false business activity statement seeking a GST refund.

But after lodging one or two statements, applications suddenly stop to avoid tax audits or requests for specific receipts.

Tax law allows firms, particularly so-called “start-up” businesses, to claim GST credits, which is included in the price paid for items used in business.

It is believed the ATO has a special risk rating system that can monitor cohorts of people, or specific names linked to known risky behaviours.

Under federal legislation, anyone found guilty of Commonwealth deception offences faces a maximum 10 years in jail.

In response to inquiries, Metropolitan Operations Service Assistant Commissioner Scott Duval, who oversees Operation Meld, said the tax investigations were ongoing.

He declined to provide further details, discuss how many arrests have occurred or say what proceeds of crime have been seized.

Assistant Commissioner Scott Duval said the investigation was ongoing. Picture: Brett Hartwig

“South Australia Police Operation Meld and the Australian Taxation Office are jointly investigating allegations of offences against the Criminal Code Act 1995 involving obtaining a financial advantage by deception,” he said in a statement.

“The penalty for this offence is 10 years imprisonment.

“As this is an ongoing investigation no further details or information will be provided.

“If any person has any information regarding this type of offending they are encouraged to contact Crimestoppers on 1800 333 000 and information can be provided anonymously.”

An ATO spokeswoman declined to comment on ongoing investigations.

But according to its website, the ATO warns GST fraud is not “accidental because it is undertaken in a deliberate and dishonest way”.

Authorities take all reports of tax crime “seriously”, officials say.

“Tax fraud, evasion and crime is not victimless, it’s a serious offence that takes money away from the community and away from essential services like health and education,” it states.

Police have been attempting to quell ongoing tensions ­between rival street gangs 051 and Killa Block Squad, known as KBS.

Members of 051 are predominantly of South Sudanese heritage from northern suburbs including Munno Para, Craigmore and Andrews Farm areas.

KBS is comprised of youths of Sudanese, Liberian and Somalian heritage.

Police have been working closely with Sudanese community leaders and the parents of younger gang members to divert them away from illegal activity.