This week, the Australian Taxation Office (ATO), with assistance of the Australian Federal Police (AFP), executed a search warrant at the Sydney residence of a former employee of a consultancy firm.
The man, who is not a registered tax professional, is alleged to have orchestrated a large-scale tax fraud. This was done through lodging false tax returns for clients of the consulting firm and then redirecting the refunds into his personal bank account. The consulting firm terminated his employment once this behaviour was discovered.
Up until the offending was detected, the individual was an employee at the consulting firm for 11 years. During the search of his Eastern Suburbs property, material including accounting records and text messages relating to his preparation and submission of tax returns was located.
It is alleged the individual, used his former company's credentials to access the ATO's Online Services for Agents and Online Services for Business. From there, the individual allegedly lodged tax returns on behalf of his so-called clients and redirected nearly $1 million in refunds to bank accounts under his name.
One taxpayer contacted during the audit activity believed the bank account was his firm's trust account. The other taxpayer was unaware of any ATO refunds being claimed.
Assistant Commissioner Jade Hawkins hoped the action taken against this individual served as a warning to those in the industry considering this behaviour.
'We will not tolerate the actions of individuals in trusted positions who deliberately deceive people for their own personal gain.
'The ATO has extensive resources and capabilities specifically targeted to combatting fraud. We will continue to ensure those who seek to exploit the tax system are held to account.
'We urge all taxpayers to protect themselves by ensuring they only engage with registered tax professionals when seeking advice or lodging their returns,' Ms Hawkins said.
The ATO is committed to ensuring taxpayers personal information is secure and safe. The ATO app has security features that notifies you in real time when key changes are made to your account such as when bank account details are changed, and tax returns are lodged.
