Save
Revealed: How tax cheats have tried their luck
The ATO has released a series of case studies outlining how some Australians have tried to cheat the tax system.
Revealed: How tax cheats have tried their luck
The ATO has released a series of case studies outlining how some Australians have tried to cheat the tax system.
It’s coming up to tax time, and the Tax Office is actively reminding the Australian public of its firepower this year with capturing tax cheats.
In the countdown to June 30, which is end of financial year, the ATO has released some examples of taxpayers who have tried their luck, and been found out.
Jail time
One case, involving 56-year-old man Peter Garven, saw him sentenced to three years and three months’ jail time for fraudulently obtaining and attempting to obtain more than $200,000 from the ATO.
As the sole director of Peter Garven Consulting and Garven Resources, between October 2002 and July 2004, Mr Garven lodged three income tax returns where he fraudulently obtained $102,504 in refunds and attempted to obtain a further $41,758.
Mr Garven claimed to have received salary and wages of more than $150,000 from the University of New South Wales, despite the university having no record of any payments to Mr Garven.
In addition, between August 2002 and July 2004, Mr Garven fraudulently obtained $51,684 in GST refunds on behalf of his two entities, Peter Garven Consulting and Garven Resources.
In 2004, Mr Garven acknowledged that his claims were false and said he would lodge amendments. The ATO never received the amended returns, which triggered audit action.
Following this, Mr Garven failed to appear in court for his trial in March 2009, with a warrant for his arrest issued shortly after. He went into hiding and was registered on the missing persons list. In 2017, he was arrested on a warrant by the NSW Police in the Watagan Mountains.
Mr Garven has also been ordered to repay $154,188.96.
Bad BAS
A wholesale distribution company director has also been sentenced to four years and six months’ jail time for fraudulently obtaining and attempting to obtain nearly $600,000.
David Irvine lodged 39 BAS (business activity statements) between January 2012 and March 2015. By reporting fake export sales, he reduced the company’s 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.
Home detention for a sole trader
Linda Taylor was sentenced in the South Australia District Court to two years and nine months to be served on home detention after being convicted of GST fraud made in BAS lodged between April 2013 and September 2015.
Ms Taylor, a sole trader of a home styling business trading as Signature Styling Design Innovation, lodged 32 monthly BAS with the ATO, fraudulently obtaining $138,076 in GST refunds.
The audit found Ms Taylor claimed a total of $2,023,646 in capital and non-capital purchases in her BAS, with her overall reported sales during the same period inclusive of GST being $259,977. To support these claims, Ms Taylor supplied false documents to the ATO.
The court found these claims to be entirely fraudulent. Signature Styling was not entitled to GST refunds that had been claimed and received.
The audit found Ms Taylor used the money obtained to fund private expenses like school and vet fees, meals at restaurants and hotels, as well as significant spending on hair and beauty services, clothing, shoes and accessories.
She has also been ordered to perform 150 hours of community service and pay reparations of $137,936.
This email address is being protected from spambots. You need JavaScript enabled to view it.
Tax saving
Last-minute items to check off before 30 June
With the end of the financial year almost here, an accounting firm has outlined key changes with tax returns this year and flagged some last-minute tax strategies to consider before 30 June. ...Read more
Tax saving
Australia’s richest owe the Tax Office $772m
Australia’s elites and private companies fell $772 million in taxes due to miscalculations and deliberate tax avoidance, the Australian Taxation Office has revealed. ...Read more
Tax saving
Do you have to pay taxes on a trust?
Trusts are usually set up for business, estate planning and investment purposes to separate the legal and beneficial ownership of assets held within the structure. ...Read more
Tax saving
Government rebuffs regional allowance and tax concession reform
A review’s findings into the viability of area tax concessions and payments for regional and remote Australians has had its recommendations shut down by the same government who requested the report...Read more
Tax saving
Penalties for tax fraud in Australia
Public taxes are used to fund government projects in relation to health, defence, infrastructure and many other national and local projects that require public funding. ...Read more
Tax saving
Disaster relief payments receive tax-exempt status
The Australian government has made disaster relief payments to bushfire-affected individuals and businesses tax-exempt while extending tax-free financial support to NSW Rural Fire Service volunteers. ...Read more
Tax saving
Are your franking credits working?
Here’s what you need to know about franking credits and how they work. ...Read more
Tax saving
What information to provide your accountant to do a tax return?
Navigating tax laws can be confusing because of its complexities, but you may hire an accountant or tax agent to prepare your tax return on your behalf. ...Read more
Tax saving
Last-minute items to check off before 30 June
With the end of the financial year almost here, an accounting firm has outlined key changes with tax returns this year and flagged some last-minute tax strategies to consider before 30 June. ...Read more
Tax saving
Australia’s richest owe the Tax Office $772m
Australia’s elites and private companies fell $772 million in taxes due to miscalculations and deliberate tax avoidance, the Australian Taxation Office has revealed. ...Read more
Tax saving
Do you have to pay taxes on a trust?
Trusts are usually set up for business, estate planning and investment purposes to separate the legal and beneficial ownership of assets held within the structure. ...Read more
Tax saving
Government rebuffs regional allowance and tax concession reform
A review’s findings into the viability of area tax concessions and payments for regional and remote Australians has had its recommendations shut down by the same government who requested the report...Read more
Tax saving
Penalties for tax fraud in Australia
Public taxes are used to fund government projects in relation to health, defence, infrastructure and many other national and local projects that require public funding. ...Read more
Tax saving
Disaster relief payments receive tax-exempt status
The Australian government has made disaster relief payments to bushfire-affected individuals and businesses tax-exempt while extending tax-free financial support to NSW Rural Fire Service volunteers. ...Read more
Tax saving
Are your franking credits working?
Here’s what you need to know about franking credits and how they work. ...Read more
Tax saving
What information to provide your accountant to do a tax return?
Navigating tax laws can be confusing because of its complexities, but you may hire an accountant or tax agent to prepare your tax return on your behalf. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.