Be very careful about tax refund fraud

Posted by 20/07/2020 News and advice No Comments

The ATO has warned businesses against claiming expenses by providing false information to them. They are checking up cases that are more than carelessness, accidental or an error.


They are targeting tax returns done in a deliberately deceitful manner, from creating fictitious expenses to creating false documentation to support a claim. Some individuals have lodged fraudulent claims in their own name and for their business.

Refund fraud affects both income tax and GST and includes:

  • providing fictitious payment summary details or fictitious expense claims or offsets on income tax returns and amendments
  • providing false information in statements such as fictitious expenses
  • lodging large numbers of fraudulent returns using false or stolen identities

Refund fraud is stealing from the whole community and disadvantages Australians who do the right thing.

The Tax office takes this very seriously, and they have a range of controls and systems in place to detect potential refund fraud, including:

  • analytical models that use behavioral and statistical algorithms to analyse information on income tax returns, business activity statements and other tax forms
  • sharing data and intelligence with partner agencies
  • obtaining information about suspected fraud from the community and other government agencies.

Call us to ensure that you Tax Return is done correctly and that you are not lodging claims that could be seen as “fraudulent”.