‘Stealing funds’: ATO warning as three people jailed over tax fraud

Three people have been jailed over tax fraud as a warning is issued to Aussies preparing to file their tax returns this financial year.

With Aussies looking forward to that end-of-financial-year refund, the Australian Taxation Office has issued a stern warning about GST fraud.

In a timely reminder about the consequences of committing fraud, three people from Queensland have been jailed in May.

Tiarn Payten Nutley was sentenced to nine months in jail for using an existing Australian business number to claim GST refunds for a fake beauty and salon business.

Nutley shared her myGov log in with two of her friends who lodged six false business activity statements in her name.

She was sentenced for one offence of dishonestly obtaining a gain of nearly $50,000 and further trying to obtain $25,000.

Nutley was released on a recognisance release order of $2000 but is required to be of good behaviour for 12 months.

A woman has been sentenced over fraudulent GST claims on a fake salon business. Picture: NewsWire / Gaye Gerard

Her friend Skye Anne Hoek gained more than $25,000 after registering her ABN for GST and lodging two BAS that contained false information. She was sentenced to three months’ jail without a recognisance release order.

Gregory Pimm ran an even more elaborate fraud system – a fake road freight transport business that he claimed to run from his home.

He fraudulently obtained more $265,000 in GST refunds and further tried to obtain $300,000.

Pimm lodged 37 BAS for his fake business and falsely reported total sales, GST collected, GST on purchases made for the business, and GST credits the ATO owed him.

A man was jailed after obtaining $265,000 in fraudulent funds for a fake road freight transport business. Picture: NewsWire / James Gourley

He was sentenced to two years and six months in jail for obtaining and attempting to obtain a financial advantage by deception.

Pimm is to be released on recognisance of $500 after six months’ imprisonment. He is also to be required to be of good behaviour for three years and subject to the supervision of a probation officer for two years.

All three were arrested under Operation Protego, which has taken compliance action against more than 57,000 alleged offenders – 105 convicted.

Acting ATO Deputy Commissioner and Serious Financial Crime Taskforce chief Kath Anderson said these prosecutions sent a strong reminder that the ATO would bring those who commit fraud to account.

Acting ATO Deputy Commissioner Kath Anderson said the fraud crackdown would continue. Picture: Supplied

“Deliberate noncompliance has consequences. The ATO will actively pursue debts obtained through fraudulent GST funds, using all the tools at our disposal to recoup those funds. Those who seek to defraud the tax and super systems will get caught and face the full force of the law,” she said.

“We are equipped with resources, sophisticated data matching, analytics capability and intelligence sharing relationships. If you think you won’t be caught, think again.

“These individuals face long-term consequences. Not only do they need to repay the money, but they will have a criminal record, which may affect their ability to secure employment, obtain finance or insurance and travel overseas.

“Engaging in GST fraud rips off your own community by stealing funds that would go to essential services, like health and education.

“Under the ATO’s Counter Fraud Program, we will continue to grow the capability and tools we need to respond to fraud in an agile and sophisticated way, collecting data and information to prevent, detect and address fraud in close to real time.”